3 Top-Notch Hard-to-Believe Facts about Bitcoin Currency!
It doesn’t matter whether you are a diehard fan of bitcoin or have less knowledge about bitcoin currency; there are always some facts that are still hidden and hard-to-believe. Bitcoin has made it mainstream, and now it has topped headlines because there is a drastic increase in the price and popularity of bitcoin. Even if you have invested in bitcoin, there are always some hidden facts that not everybody knows. You can also learn about bitcoin and Ethereum code as these are open-source.
Let us learn about some hard-to-believe bitcoin and cryptocurrency facts that a bitcoin user must know.
Bitcoin is the third generation of all currencies.
Buying and selling goods and services is a thing from ancient times, but the introduction of currencies was a wholly new concept. Mainly the currency means that a store of value. In ancient times, the currency used to have intrinsic value, which was comparable to precious metals. In 1776, a book was released. The main element or argument was that the economy should be developed on productivity, industrialization, incentives, and technology rather than how much precious metal a country has.
The whole argument resulted in the invention and popularization of fiat currencies. The invention of fiat currencies was done to provide a store of value that represents the wealth of either a specific country or different countries. After fiat currencies, Bitcoin became the third generation of currencies which was also known as digital currencies.
Unlike fiat currencies and precious metals, there is no intrinsic value of Bitcoin, and also, it has a limited supply which makes it impossible to duplicate or counterfeit. Bitcoin was introduced as a decentralized currency that didn’t involve any third parties.
Crystal clear purpose
The bitcoin currency was developing in 2008 during the financial crisis, and at that time, people lost their trust in banks and central authorities. This crisis led to bitcoin development, the first cryptocurrency that is independent of government and financial institutions. Bitcoin was introduced with a crystal clear purpose to provide users with a new electronic cash system that is peer-to-peer in nature. It was wholly described in the whitepaper of bitcoin published in 2008 by a mysterious entity Satoshi Nakamoto.
The general public wanted a solution to their problem. The solution was written in a whitepaper that includes people with an electronic cash system that allows peer-to-peer transfer that is not dependent on trust but cryptographic proof without third parties’ requirement. Scammers and fraudsters used to fraud and steal money, but this demerit was overcome when bitcoin was introduced. Bitcoin introduced transactions as impossible to reverse, avoiding fraud and providing no risk to traders and investors.
The purpose of inventing Bitcoin wasn’t to make money and not to provide an investment opportunity. Still, bitcoin was developed to protect the general public from Anti-Money Laundering and corruption and provide a new way independent of government.
It is not difficult to mine bitcoins.
There is a common myth among people that mining bitcoin is a difficult task. This is somewhat true because mining bitcoin involves a lot of expenses. Earlier, when bitcoin was introduced, mining involves fewer expenses, and also the mining process was profitable. Still, it has become difficult because the complexity keeps increasing with each block that is verified and recorded on the blockchain.
Bitcoins are mined by using computing power to solve mathematical puzzles. The mathematical puzzles are complex and random and involve guesswork, which can be done using enhanced computing power. The difficulty or complexity of these puzzles keeps increasing on the bitcoin network because bitcoin is limited. The miners are only provided with a time limit of 10 minutes in which they are required to solve a block of transactions.
Also, the mining reward per block is decreasing with time. In 2009 the block reward per block was 50 BTC, but as of 2020, it has been decreased to 6.25 BTC. Miners can still make the mining process profitable but getting electricity and computing power at fewer prices.
The Bottom Line
Before you invest, trade, or HODL any cryptocurrency, you must gain in-depth knowledge about currency and it’s working. We have mentioned some unknown facts about bitcoin revolution system that you must checkout.