10 Important Facts About Bitcoin

by Alvin Ramon

Unless you’re a Bitcoin investor or a miner, it’s possible that Bitcoin still feels mysterious and confusing. Bitcoin is defined as decentralised digital currency that uses peer-to-peer technology to manage money transactions. It’s open-source, and no one is in charge of it, which users appreciate.

If you want to buy Bitcoin, it’s essential to get familiar with several important facts. Then you can join a crypto exchange, create Bitamp anonymous Bitcoin wallet online, and start investing.

1. Bitcoin Finally Has Legal Tender

In September 2021, Bitcoin was officially accepted as legal tender in El Salvador. This doesn’t mean it replaced the US dollar, which has been the leading currency in the country, but that they will co-exist.

The El Salvadorian government encouraged citizens to open a Bitcoin wallet by offering £22 worth of Bitcoin to everyone.

2. Bitcoin Production Is Limited

One of the lesser-known facts about Bitcoin is that it’s finite by nature. There can only ever be 21 million coins in circulation, and Bitcoin miners have already produced 19 million of them.

However, that doesn’t they’ll mine the last coin soon. It’s estimated that the last Bitcoin will be added to the blockchain in 2140.

3. Bitcoin Millionaires Are Not Rare

There are nearly 100,000 Bitcoin millionaires and billionaires. It’s impossible to know the exact number, since digital wallets are typically anonymous.

Users who create Bitamp anonymous Bitcoin wallet online are aware of this fact. The rise of Bitcoin millionaires is one of the reasons why so many people view investing in Bitcoin as a lucrative idea.

4. A Lot of Bitcoin Is Forever Lost

There are a few reasons why close to 20% of all Bitcoin is not accessible. The creator of Bitcoin, Satoshi Nakamoto, holds around a million coins, and it’s presumed these coins will never be released back into the market.

Other reasons include users that have passed away and those who have lost access to their private keys.

5. The Value of Bitcoin Skyrocketed Over the Years

Since its creation in 2009, the overall value of Bitcoin has been on a steady increase. The only exception to this trajectory was the year 2014 when the price of Bitcoin plummeted.

Due to a hacking event, Bitcoin lost 62% of its investors that year. Regardless of its volatility, however, the price is still on the rise.

6. Bitcoin Mining Is a Laboursome Process

Some crypto-curious individuals might be less interested in buying Bitcoin and want to try mining it instead.

While this is a viable option, Bitcoin mining requires a considerable financial commitment, time, and knowledge. Plus, mining Bitcoin is not environmentally sustainable due to the high use of electricity.

7. You Don’t Need to Be Rich to Buy Bitcoin

Not everyone can afford a whole Bitcoin as its current price sits around £42,000. The good news is that a single Bitcoin can be divided into a hundred million satoshis, which is the smallest unit associated with Bitcoin.

To start investing in Bitcoin, you don’t need significant initial capital – you can start with just a few pounds. However, keep in mind that some crypto exchanges have minimum deposits.

8. Some Countries Have Banned Bitcoin

Countries like the UK, Canada, and the US have embraced cryptocurrency investing and have made efforts to regulate it.

On the other hand, some places like Indonesia, Bolivia, Egypt, China, and Turkey have imposed an embargo on digital currency.

9. You Have to Pay Taxes on Bitcoin

Even though none of the cryptocurrencies are legal tender in the UK, they’re still categorised as assets.

Therefore, anyone who profits from investing in Bitcoin or mining has to pay income or capital gains tax. Failing to comply is treated the same way as any other form of tax evasion.

10. Bitcoin Is Not the Only Cryptocurrency

The term cryptocurrency is synonymous with Bitcoin. It is the original digital token, and for a while, was the only one.

These days, there are thousands of new digital currencies, and more are being introduced all the time. Still, Bitcoin remains the leading force in the crypto industry.

With Bitcoin Knowledge Gives You Power

These ten facts give you an idea of Bitcoin’s impact on the world. Owning Bitcoin is not rare anymore, and it’s not an unusual choice to make.

Even the mainstream financial institutions have seen the benefits of blockchain technology and have chosen to invest in it.

Bitcoin is accessible to everyone, and its open-source system makes each individual an equal participant.

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