Fascinating Bitcoin Facts that you should know
There are a couple of reasons why Bitcoin is the most popular cryptocurrency in the world:
- Bitcoin has the best security. BTC is secured by a multi-billion dollar network of ASIC miners
- Bitcoin is the oldest cryptocurrency. The fact that Bitcoin has been around for 10 years gives investors a lot of confidence that it’s safe
- Bitcoin has the largest network effect. Exchanges, wallets, merchants, applications and large financial institutions support Bitcoin more than any other cryptocurrency
Should I invest in Bitcoin?
Every investor has to answer that question for themselves. Bitcoin is a very volatile asset. The price of Bitcoin can go up very quickly, and then crash even faster. Investors who bought near the peak of the bull market in 2017 had to wait three years just to break even.
The best rule of thumb with Bitcoin is not to invest more than you can afford to lose.
Is it safe to invest in Bitcoin now?
Nobody can guarantee that it’s 100% safe to invest in Bitcoin. Something could always go wrong, which is just part of the game. If Bitcoin wasn’t risky then there wouldn’t be huge gains in price.
That being said, it has never been safer to invest in Bitcoin. Bitcoin’s security network is as strong as it’s ever been and now that large institutions are buying BTC it’s less likely that governments will try to ban it.
Should I invest in bitcoin in 2021?
You should invest in Bitcoin as long as you plan to stay invested for a while. At some point, assuming that history repeats itself, Bitcoin will enter into another bear market. If you don’t sell your investment before the bear market, be prepared to hold for a long time.
The Top 15 Fascinating Facts about Bitcoin
To help you understand crypto we’ve put together this list of Bitcoin facts. Some of these facts about Bitcoin you might already know, but others may be a surprise.
1) Bitcoin is uncorrelated to traditional markets
One of the fascinating facts about cryptocurrency is that Bitcoin and other cryptocurrencies are generally uncorrelated to traditional markets. In the short term, a stock market crash might bring down the price of Bitcoin as well.
However, over a longer time frame Bitcoin has proven to be uncorrelated to other assets. Bitcoin can go down while stocks go up, and vice versa. This makes BTC very valuable as a diversifying asset for large, institutional investors.
2) A majority of Bitcoin mining power comes from renewable sources
Despite what is reported in the mainstream media, one of the facts about Bitcoin that we think everyone should know is that a lot of the power for Bitcoin mining comes from renewable sources. Much of that is hydropower in China.
If it weren’t for Bitcoin miners, a lot of this power wouldn’t be used since it can’t be transmitted to cities where there’s a lot of demand. Nic Carter has written a great piece debunking the myth that Bitcoin is horrible for the environment.
3) Bitcoin is a solution to gas flaring
When oil companies start fracking they get more than just oil; natural gas also comes out of the well. Unfortunately, it’s not financially viable to catch this natural gas and feed it into the distribution system.
Oil companies “flare” a lot of this gas. They burn the gas and since it’s too expensive to transport and sell it. Bitcoin can solve this.
Companies like GAM are creating portable Bitcoin mining rigs that use natural gas generators to power ASIC miners.
Everyone wins! The natural gas generators create less pollution than flaring and the oil companies get paid for the gas that they were just wasting before.
4) We still don’t know who created Bitcoin
Most people refer to Satoshi Nakamoto as a “he,” however that’s just the most convenient pronoun to use in conversation. In truth we have no idea if Satoshi is a he, she or they.
Some people believe that Satoshi is the controversial Bitcoin SV developer Craig Wright. Recently, one or two macro commentators have speculated whether the Chinese Communist Party could have created Bitcoin. Others have asserted that Bitcoin was created by the CIA.
Since we don’t know the truth about Bitcoin’s origins, all sorts of conspiracy theories are constantly popping up to explain where BTC “actually” came from.
5) Bitcoin is the best performing asset in the history of the world
Someone recently joked that Bitcoin is up 11,000,000% since its creation. Eleven million percent sounds like it’s absurd but depending on how you look at it, maybe it’s not such a joke after all. When Bitcoin was created it essentially had no value. Zero, nothing, there wasn’t even a market for it.
Eleven years later and one BTC is worth $50,000. How can you measure something that went from worthless to being worth such a huge amount?
If we assume BTC started at $0.01 then Bitcoin is currently up a casual 681 million percent. If we start from a valuation of $1 then BTC is up about 5 million percent at the time of writing. No matter how you measure it, Bitcoin is the best performing asset in the history of the world.
6) Satoshi is on the brink of being the richest person in the world
A widely known fascinating Bitcoin fact is that Satoshi has about 1 million BTC in his or her account. Those coins have never been touched and are widely regarded as lost.
Nonetheless, if Satoshi were to come back and claim the coins they would make him or her one of the richest persons in the world. With BTC at $50k, Satoshi is worth about $50 billion. If BTC goes to $150,000, Satoshi will be the richest person on the planet by a long shot.
7) Bitcoin is the most secure network in the world
Bitcoin is one of the only computer networks in the world that has never been hacked, even though hundreds of billions of dollars are at stake.
Compare this to the United States government. You would think that government systems would be secure, but just a few months ago the United States treasury was hacked.
8) There is a United States senator who supports Bitcoin
Out of all of the fascinating facts about cryptocurrency, it’s super exciting to see that there is a United States senator who supports Bitcoin!
Cynthia Lummis, a senator from Wyoming, supports Bitcoin since it’s a hard asset with a finite supply. Lummis doesn’t believe that the United States should be going into so much debt and spending a bunch of money that it doesn’t have.
She believes Bitcoin is a viable currency since a central bank cannot manipulate its supply. For everyone worried about the United States government banning Bitcoin, it’s good to know that Cynthia Lummis is in the senate fighting for it.
9) Somebody once paid 10,000 BTC for two pizzas
On May 22nd, 2010, a Bitcoin enthusiast named Laszlo Hanyecz paid 10,000 BTC for a pair of pizzas. At the time BTC was virtually worthless so it seemed like a good idea.
Of course, what we’ve come to realize is that BTC is anything but worthless, and those 10k BTC are now worth half a billion dollars.
Laszlo definitely got the most expensive pizza ever! And every May 22nd the Bitcoin community celebrates pizza day.
10) Cryptocurrencies are used for criminal activities a lot less than most people think
One of the most common “coin facts” is that cryptocurrencies are mostly used for criminal activities. This is objectively not true.
If you understand crypto you understand that Bitcoin is a perfect ledger of every transaction that has ever happened. This actually makes it a terrible tool for criminals, since they can never erase the history of the transactions that they’ve made.
11) Making changes to the Bitcoin network is very difficult
Making changes to the Bitcoin network is very difficult on purpose. Since the number one selling point of Bitcoin is security, nobody wants to make a change that could hurt the network. Before any change is made the upgrade must be tested, audited and approved by multiple developers.
It would be almost impossible for a random programmer to make an unapproved change to Bitcoin by his or herself.
12) Bitcoin had the fairest distribution possible
If you’re going to create a new cryptocurrency, how can you distribute it to people? This is actually a difficult problem but many people believe that Satoshi implemented the best possible distribution model.
When Bitcoin was first released you could mine it with your laptop. Bitcoin was so cheap that services literally gave it away via BTC faucets.
Distributing a new currency is not easy, but Satoshi might have found the best method for doing so.
13) Law enforcement agencies have operated coin mixers before
Because the Bitcoin blockchain is transparent, you can trace transactions on the network. One solution is to use a Bitcoin mixer to join coins together and hide the transaction flow. However, one of the Bitcoin facts that not many people know is that law enforcement agencies have operated Bitcoin mixers before!
People were using BTC mixers to hide their transactions while the government was watching everything.
If you’re going to use BTC you have to assume that every transaction you send can be monitored. This is another reason that BTC is not a good currency for criminals.
14) In a bull market, BTC goes first and the altcoins follow
A lot of investors who are new to crypto often get angry when BTC goes up in price while their altcoins hardly move.
In fact, what often happens in a crypto bull market is that Bitcoin goes first, then it takes a break and the alts follow, often making much larger price increases than BTC.
There’s no better example of this than 2017. In December of 2017 BTC hit $20k but a lot of the altcoins didn’t top out until a few weeks later.
15) A Satoshi is the smallest unit of account in Bitcoin
A Satoshi, also commonly called a “sat,” is the smallest unit of account in Bitcoin. A Satoshi is a piece of a Bitcoin divided down to the 8th decimal place. In other words, it takes 100 million Satoshis to get 1 BTC.
One of the fascinating facts about cryptocurrency is that you’ve probably heard the expression “stacking sats.” That expression is referencing Satoshis.
We hope you enjoyed this article! For more fascinating facts about Bitcoin, check out our article The 5 Best Things That Happened to Bitcoin in 2020.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.