Did you know that the entire cryptocurrency market is now worth over $3 trillion? It also shouldn’t come as a surprise that a large portion of this value stems from Bitcoin.
Interestingly, many people are unfamiliar with most of the nuances that make Bitcoin unique. Before you go about investing in crypto, there are certain Bitcoin facts that you need to keep in mind.
Let’s take a look at the facts about Bitcoin you need to know.
1. Nearly 20% of Bitcoin Is Gone Forever
One of the most important Bitcoin facts to consider is that a large number of Bitcoin have been lost forever. In fact, it’s estimated that around 20% of all Bitcoin that has ever been mined is no longer in circulation.
This is due in part to people forgetting their passwords or losing access to their digital wallets. While this may not seem like a huge number, it actually represents a significant amount of value.
To help put this into perspective, imagine if 20% of the total number of US dollars in circulation disappeared overnight. This would cause the value of the dollar to skyrocket.
2. Bitcoin Is Not as Anonymous as You Think
Another important thing to keep in mind when it comes to Bitcoin is that it’s not as anonymous as you may think.
In fact, all transactions are recorded on the blockchain, which is a public ledger. This means that anyone can see the details of any Bitcoin transaction.
If you’re looking for anonymity, then Bitcoin may not be the right option for you. However, it is still worth noting that crypto is much more anonymous than conventional forms of currency. If complete privacy is not a concern for you, you likely won’t run into any issues.
Regardless, keep this in mind before you go about investing in Bitcoin.
3. Bitcoin Is Not Regulated By Governments
One of the key benefits of Bitcoin is that it’s not regulated by governments. This means that you don’t have to worry about your investment being seized or frozen by the government.
It also means that you’re not subject to any government regulations when it comes to using or trading Bitcoin. Interestingly, this doesn’t stop people from being able to use ATMs in order to withdraw this currency.
You can check out this resource to learn more about where to find a Bitcoin ATM near you: www.bytefederal.com
4. Bitcoin Is Considered Legal Tender in El Salvador
While Bitcoin is not officially regulated by governments, that doesn’t mean that it’s not legal. In fact, there are a number of countries where Bitcoin is considered to be legal tender.
El Salvador is one example of a country where Bitcoin is recognized as a legitimate currency. So, you can use it to purchase anything you would be able to use official El Salvadorian currency to purchase.
Imagine paying your taxes with Bitcoin!
5. Bitcoin Is Not Without Risk
It’s important to keep in mind that Bitcoin is not without risk. Like any other investment, there is always the potential for you to lose money if you invest in Bitcoin.
It’s important to do your research before investing in Bitcoin and to understand the risks involved. Unfortunately, there is plenty of hype associated with this type of crypto.
People often invest far more than they should in hopes that they will experience an exponential return. However, Bitcoin is notorious for being volatile. A common scenario could cause you to see a large increase shortly after you invest your money.
However, you might then might experience a large crash that causes you to lose almost everything.
6. There Is a Limit on How Many Bitcoin Can Be Mined
One of the key things to remember about Bitcoin is that there is a limit on how many Bitcoin can circulate.
In fact, there is only 21 million Bitcoin that can ever be mined. This means that as the demand for Bitcoin increases, the value of each Bitcoin will also increase. This makes it one of the most unique forms of currency, as there is a hard limit on the number of coins that can ever exist.
7. The First Bitcoin Transaction Ever Was the Purchase of a Pizza
One of the most interesting Bitcoin facts is that the first Bitcoin transaction ever was the purchase of a pizza. At the time, Bitcoin was worth only a fraction of a penny. This means that the buyer needed to use thousands of them in order to complete the transaction.
Due to the way that this currency increased in value over time, that pizza purchase would be worth millions of dollars today.
8. There Are a Large Number of Bitcoin Millionaires
Another notable fact about Bitcoin is that there are a large number of Bitcoin millionaires.
It’s estimated that there are currently hundreds of Bitcoin millionaires in the world. This number is only expected to grow as the value of Bitcoin continues to increase. Out of all the Bitcoin facts, this is one of the most significant reasons why people choose to invest in Bitcoin in the first place.
You Shouldn’t Overlook These Facts About Bitcoin
The above facts about Bitcoin can help you decide whether or not it is a suitable investment option. Of course, should always be wary of any crypto investments that you make due to the risk involved.
Looking for other useful financial information? You can check out the rest of our blog for other articles like this one.