Top 7 Mind-Blowing Facts About Bitcoin That Even Diehard Investors Don’t Know
“Bitcoin inventor is mysterious” isn’t the only insane fact about bitcoin — there are more
“Who created bitcoin?” is one of the biggest mysteries in the tech world.
Although there is no public information about the creator of Bitcoin, the name Satoshi Nakamoto was pseudonymously used for the person who developed the cryptocurrency first, in the Bitcoin whitepaper that was released back in 2010.
Since the pseudo name is used as a developer name instead of the original one, no one knows anything about the inventor— it could represent a man, a woman, or even a group of people.
The anonymity of Nakamoto helped make Bitcoin decentralised currencies in the worldwide economy.
Bitcoin is now the king of Cryptocurrency.
It is undoubtedly the best cryptocurrency as it is of decentralized nature and focuses on peer-to-peer transactions that are more affordable, faster, and convenient.
The spot price to buy a bitcoin briefly rose above $58,000 on February 21. (For context, the cryptocurrency’s in 2013 was priced at $67.81.)
“It’s probably going to $100,000, then $150,000, then $200,000,” says Chamath Palihapitiya, founder, and CEO of Social Capital
“In what period? I don’t know. [Maybe] five or 10 years, but it’s going there.”
Bitcoin isn’t just a digital currency; it’s has now become an international sensation that has helped bring about a massive technological revolution.
“Bitcoin will do to banks what email did to the postal industry.” — Rick Falkvinge
Great as it is, there are things, I for sure as hell can say, that you didn’t know about Bitcoin. Here are some of the more facts even diehard investors don’t know:
#1 The first-ever Bitcoin transaction was over buying two pizzas
Guess what the first Bitcoin transaction was? No, it wasn’t over a drug deal or gun money.
The world’s first real-world bitcoin transaction was made on May 22, 2010. A programmer named Laszlo Hanyecz who had invested in 10,000 Bitcoins, decided to spend all of them on two pizzas from Papa John’s. Jercos was the person that participated on the other side of the exchange.
This fact made Laszlo the first person to acquire a good using bitcoins and Jercos the first person to sell them. As Jercos himself would later say:
“Give a man a pizza, he will eat for a day; let him buy pizza with bitcoin, it will revolutionize the economy.”
At that time, 10,000 BTC were worth $41.
I bet that Laszlo guy might be kicking himself because if he had saved those coins because today after 11 years later, those 10,000 BTC are worth $52,70,97,000. But once the transaction is made, it’s made. And there is nothing anyone could do about it now — except regretting of course.
Because of the fact that the first-ever Bitcoin transaction was made on May 22 over a pizza, today May 22 today is celebrated as Bitcoin Pizza Day in the crypto world.
#2 Bitcoin was sent to outer space
Genesis Mining decided that sending bitcoin to space was the perfect way to increase awareness about Bitcoin while educating people about its benefits as a general digital financial manager.
Marco Streng, CEO, and co-founder of Genesis Mining said:
“While we knew that sending it to the moon may prove difficult in the short term, near-space was a pretty great achievement for cryptocurrency so we decided to pursue the project,”
The Bitcoin, along with a paper wallet, was tied to a weather balloon and sent off into the sky. Once the weather balloon had reached 20 km, the team at Genesis Mining sent one bitcoin to the wallet to make it official.
“We hoped to get over 30 km, which we did,” said Streng. “Our partners let us know that 34 km was going to be the optimal height and that is when we sent the second coin.”
#3 If you lose your Bitcoin private key, you lose your Bitcoins — all of them
James Howells, a British IT worker, lost 7,500 bitcoins in November 2013 because he accidentally threw away the hard disk, while cleaning his house, that contains his Bitcoins private keys which he had mined in 2010.
“After I had stopped mining, I kept the hard drive in a drawer at home knowing it contained my Bitcoin private keys, so that if Bitcoin did become valuable one day I would still have the coins I had mined,” Howell told the Telegraph.
“…In mid-2013 during a clear-out, the hard drive was mistakenly thrown out and put into a general waste bin at my local landfill site, after which it was buried on site.”
At present, the worth of 7,500 BTC would be worth more than $280 million.
Howells’ story isn’t unique. The New York Times reported that a programmer in San Francisco has been locked out of 7,002 bitcoins — worth about $267.8 million today — because he forgot the password of a small hard drive that contained the private key to his digital wallet.
Private keys are mathematically related to all Bitcoin addresses generated for the wallet. They are the “ticket” that allows someone to spend bitcoins without them, your bitcoins are of no value. If you lose your private keys, you also lose your bitcoins because there is no way to recover the lost private keys.
You lose your private key, you lose your bitcoins — all of them.
#4 There will only ever be 21 million Bitcoins
Bitcoin’s supply is not infinite — it’s finite.
There will only ever be 21 million Bitcoins.
Like many other cryptocurrencies, Bitcoin was designed on a finite supply. That means there’s a fixed upper limit on how many Bitcoin can ever come into existence.
In Bitcoin’s case, the upper limit was set by its creator, Satoshi Nakamoto, at exactly 21 million.
As of February 24, 2021, 18.638 million bitcoins have been mined, which leaves 2.362 million yet to be mined. Once miners have unlocked this number of bitcoins, the supply will be exhausted.
According to experts, the final bitcoin will be mined around the year 2140. And after that, the supply of bitcoin will stop.
#5 Bitcoin cannot be banned
Bitcoin isn’t something controlled by a government that can be banned anytime. Since Bitcoin is controlled by its vast network of users, no one can ban bitcoins forever.
Sure governments can impose few restrictions on it, but they can't prohibit its usage. In simple words, bitcoin can be regulated, but it cannot be banned.
Several countries have tried to ban bitcoins but failed to do so. Nevertheless, there are countries such as Vietnam, China, Bolivia, Bangladesh, Russia, etc that restricted the usage of Bitcoin. But other countries, such as Japan, The United States, Germany, and Australia, are regulating and using it just like fiat currencies.
#6 Bitcoin is made of 31,000 lines of codes
On the evening of January 3, 2009, when Satoshi Nakamoto pressed a button on his keyboard and created a new currency called bitcoin. It was all bit and no coin. There was no copper, gold, silver, or paper — just thirty-one thousand lines of code and an Internet announcement.
Nakamoto’s invention was entirely controlled by the software, which would release a total of 21 million BTC, almost all of them over the next 20 years.
Every ten minutes or so, just like a lottery process, coins would be distributed. Miners (people seeking bitcoins) would play the lottery again and again, and the fastest computer would win the most amount of money.
Dan Kaminsky, a famous hacker, tried investigating the currency and was sure he would find major weaknesses.
“When I first looked at the code, I was sure I was going to be able to break it, The way the whole thing was formatted was insane,” says Kaminsky “But every time I went after the code there was a line that addressed the problem.
I’ve never seen anything like it.
…He’s a world-class programmer, with a deep understanding of the C++ programming language. Either there’s a team of people who worked on this or this guy is a genius.”
#7 Bitcoins transactions are untraceable
With banks and online transactions, each user transaction is recorded, and authority can track any one of them, at any time using the transaction history.
But there is no such thing with bitcoins as — bitcoin transactions are totally untraceable.
Bitcoin is an untraceable technique of payment. Bitcoin transactions are recorded in the blockchain which is a public ledger, but no one can actually track the user using their transaction history.
While making Bitcoin transactions, one’s name/identity is not used in any form. Only their public address is available.
Only if anyone knows another person’s Bitcoin public address, they can see what transactions they have made or how many bitcoins they hold.
Bitcoin users often use different services or VPN to hide their IP addresses. It offers users excellent privacy which allows users to make worldwide transactions without worrying about being traced or tracked