Bitcoin was introduced more like hype and less like a cryptocurrency. Many still think that Bitcoin is a bubble and it is here to burst. But then, there are many things Bitcoin is and below we are listing 10 things you do not know about Bitcoin.
Existence Of Bitcoin
Bitcoin was created as a substitute for money and to avoid situations like the Great Recession which was witnessed in 2009. The transactions are digital and also bitcoin ecosystem is made to tackle inflation.
Creator Of Bitcoin
Controversies and assumptions surrounding the Bitcoin creator are many. The only name we have is ‘Satoshi Nakamoto’. Nobody knows who Satoshi Nakamoto is. There have been some baseless claims but all in vain. The question is, if we know who the Bitcoin creator is, people would rush to him and ask him to make a second version of Bitcoin. For one to prove that he/she is the creator of Bitcoin, they will have access to keys that control the earliest Bitcoin on his computer or computers.
Bitcoin Is Not Anonymous
Bitcoin is not anonymous. In fact, this was one of the reasons for the hard fork of Bitcoin into Bitcoin Cash and a few other altcoins. Pseudonymous does not guarantee anonymity, however, you can use a different name every time you do a transaction. If the pseudonym is linked to your name, then your transactions do not remain anonymous anymore.
Early Adopters Of Bitcoin
Bitcoin’s white paper was launched in 2009, but as the nature of Bitcoin was complicated, only a few people understood it, and adopters were even fewer. It was surrounded by skepticism. A few adopters like Winklevoss Twins, Roger Ver and Charlie Shrem have garnered insane fortune through investing in Bitcoin at an early stage.
Supply Of Bitcoin
There could be only 21 million bitcoins or 21 billion satoshis ever in this world. This makes Bitcoin extremely unique and comparable to Gold as the supply is limited. Once all the bitcoins are unlocked, the global supply of Bitcoin is essentially tapped out, unless its protocol is changed for a larger supply.
How Bitcoin Is Obtained
A process called mining is achieved by proof-of-work (PoW) system to obtain Bitcoins. Miners get rewarded to verify the transactions and get rewarded 12.5 BTC per transactions they verify. Mining pools collectively mine Bitcoin as the costing is 5x times of mining Gold.
You Can Buy/Sell Using BTC
Bitcoin, the most popular cryptocurrency, has been adopted by many e-commerce companies and also by individuals for day-2-day needs. On May 22, 2010, a Florida-based programmer working for online retail company GoRuck, purchased 2 pizzas from a shop named Papa John’s Pizza for 10,000 BTC, which are now worth $39.6 million.
Wallets: Are They Really Storing Bitcoins?
No, wallets do not store your bitcoins but the credentials. Bitcoins are inseparable from the transaction ledger. So when you buy Bitcoins, you don’t actually have bitcoins but the keys to access them. Wallets store 16 digits cryptographic key related to Bitcoins.
Bitcoins transactions are stored on the block. The limit per block size is 1MB, around 7-8 transactions could fit on one block of Bitcoin. The 1MB limit has created a bottleneck in bitcoin, which results in the increase of transaction fees and delayed processing of transactions that cannot fit onto a block.
Uses More Energy
Bitcoin per transaction uses more electricity then three homes collectively. Bitcoin mining amounts to three times the energy used for Ethereum mining and twice that of Litecoin mining. People are worried as they think electric consumption to mine Bitcoins is killing the environment. Alternative renewable energy resources should be taken into consideration to make Bitcoin ecosystem more sustainable.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]