10 Facts About Bitcoin Every Crypto Enthusiast Must Know

10 Facts About Bitcoin Every Crypto Enthusiast Must Know
10 Facts About Bitcoin Every Crypto Enthusiast Must Know

Bitcoin describes technology, concept, network, digital asset, and currency all at the same time. Bitcoin has two parts – one is the digital coin, and the other is the bitcoin system and the blockchain technology. From the digital coin perspective, bitcoin is a virtual currency. It is used to transmit value amongst individuals, like the fiat currency. From the perspective of the system and technology, Bitcoin is a vast computer network spread all around the world (called “nodes”). Moreover, it is a decentralized database which stores all the bitcoin transactions. We share some unknown facts about Bitcoin below:

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1. Bitcoin Predecessors

Although many of us might consider Bitcoin as a relatively new technology, there have been ancestors. Efforts to develop a digital currency were done in the past. However, none of them have been able to take-off from the ground. Nevertheless, Bitcoin has successfully borrowed concepts from these previous developments;

David Chaum’s Blind Signature Technology: It allowed anonymous transactions
‘How to Make Mint: The cryptography of anonymous electronic cash’ by National Security Agency Office of Information Security Research and Technology in 1996. This paper emphasized the core fundamentals of any electronic cash system.

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Wei Dai’s B-money and Nick Szabo’s BitGold: It emphasized some of the similar protocols, like the proof-of-work being used by Bitcoin.

2. Invention of Bitcoin

According to the Bitcoin white paper, it is said to have been developed by a mysterious person, or a group of people identified as Satoshi Nakamoto. However, the name is a pseudonym to keep the actual person behind it off the hook. Nevertheless, due to their close association with digital currencies, David Chaum, Wei Dai, and Nick Szabo have frequently been speculated of Satoshi Nakamoto despite their denial.

3. Liberland 

In April 2015, a micronation between Croatia and Serbia, known as Liberland, was born. Vít Jedlička founded it. He is a politician, publicist, activist, and president of Liberland. The official currency of Liberland is bitcoin. The government considers that Bitcoin and its underlying blockchain concepts offer a secure and transparent method for recording electronic, financial, and physical assets.

4. The Power of “B”

The terms “Bitcoin” with an uppercase “B” and “bitcoin” with a lowercase “B” indicate two different things. The former refers to the ledger that stores data regarding these transactions. The latter refers to the cryptocurrency that is utilized to perform the transactions.

5. Bitcoin Pizza Day

The first-ever Bitcoin transaction was buying two pizzas, with 10,000 bitcoin by Hanyecz on May 22nd, 2010. Today, this transaction is dubbed as the most precious food order in history. However, the date Hanyecz made his purchase, May 22nd, is now named as “Bitcoin Pizza Day.” Therefore, it is celebrated by cryptocurrency adopters worldwide.

6. Satoshi: Smallest Unit of Bitcoin

A cent is the smallest unit of USD. Likewise, a satoshi is the smallest unit of bitcoin. It is the smallest denomination with which transactions can be carried out. One Satoshi is worth exactly 1/100,000,000 (one one-hundred-millionth) of a bitcoin. Furthermore, the bitcoin code itself refers to these tiny units, and one bitcoin is just the name its creators gave to 100,000,000 such units.

7. First Bitcoin Faucet Distribution

Crypto investors, who wish to receive portions of bitcoins for free are very well aware of Bitcoin Faucets. The sites dispense small portions of Bitcoins free of charge to visitors at a given time interval. Today, the amount distributed is in the order of Satoshi. Therefore, it’s very small. However, this has not always been the case. Thus, the first Bitcoin Faucet developed in June 2010 by Gavin Andersen distributed 5 BTCs to each visitor.

8. Limited Number of Bitcoin

There’s a cap to how many bitcoins can exist in the market. The cap set by Satoshi is 21 million. As of this moment, 18.5 million bitcoins are now in circulation. Additionally, crypto analysts believe until 2140; the market will still have bitcoins to mine. However, this is dependent on how miners are rewarded. Miners are awarded 12.5 bitcoins for each block added to the blockchain. Additionally, every four years, the reward is reduced by half.

9. FBI owns one of the largest Bitcoin Wallet

A few years ago, the FBI shut down the Silk Road, a big black market website where Bitcoin was often used to make different purchases. FBI acquired all the Bitcoins circulating the website, which is approximately 1.5% of all the world’s Bitcoin. However, that may not seem like a significant amount, but 1.5% is considerably huge for one entity to own.

10. Bitcoin was sent to space.

The Bitcoin is the first crypto to make it out of the Earth’s atmosphere and space, in 2016. Cloud provider Genesis Mining tied a Bitcoin paper wallet and a 3D model of Bitcoin to a weather balloon. It used a GoPro to track its progress. Moreover, transactions were successfully carried out at 20 and 34 kilometres altitude.