We have all heard of Bitcoin, the most popular of the cryptocurrencies, and most of us have an idea how it works. Much like fiat currencies like the dollar and the Euro, Bitcoin can be bought and sold, and like other currencies, Bitcoin’s value fluctuates, and here are some surprising facts about Bitcoin that you may not be aware of.
- Bitcoin Can Be Used as Loan Security – You can take out Bitcoin loans, where your Bitcoin is used a security for a loan, and this can be arranged by a reputable Bitcoin dealer. The actual amount that your Bitcoin will allow you to borrow would be determined by the lender, but Bitcoin is regarded as an asset, therefore you can borrow using Bitcoin as collateral.
- The Creator of Bitcoin is Anonymous – The name Satoshi Nakamoto is associated with the creation of Bitcoin, as he first published a paper entitled, “Bitcoin: A Electronic Peer to Peer Electronic Cash System” in 2008. Even to this day, no one really knows if Satoshi Nakamoto exists, as he seemed to disappear after setting up Bitcoin in 2009, and despite exhaustive investigations, his existence or identity is still in dispute.
- There is a Finite Number of Bitcoins – Bitcoins are mined, which involves using banks of super computers that search through algorithms, and if a new Bitcoin is mined, the finder is rewarded with a specific number of Bitcoins for their efforts. The total number of Bitcoins that can be found is exactly 21 million, and mining experts predict that the last Bitcoin will be mined around the year 2040, and once that happens, no more Bitcoins will be added to the network.
- Many Retailers Now Accept Bitcoin as a Form of Payment – All over the world, retailers are accepting Bitcoin as a form of payment for their products and services, which boosts the currency’s credibility. Today, you can pay for your morning coffee in Melbourne using Bitcoin, and there are even prestigious universities that take Bitcoin to pay for study courses.
- Bitcoin Cannot Be Banned – There are banks, finance companies and even governments that do not like Bitcoin, yet the system cannot be banned, as it is an open source public ledger that uses the Internet as a platform. There is no centralised body that governs Bitcoin, and the reason why banks and credit card companies do not like Bitcoin is that it does not need a third party to carry out financial transactions. Governments don’t like Bitcoin because of its anonymity (when a person sends another person Bitcoin, it is an anonymous transaction) and despite attempts to regulate Bitcoin, it remains ungoverned.
If you would like to buy Bitcoin as a form of investment, all you have to do is download the free Bitcoin Virtual Wallet software onto your device, then visit a reputable Bitcoin dealer, where you can purchase as much Bitcoin as you wish. When you have the software on your device, you will have a public and a private digital key, and you are strongly advised to copy the private key and store it in a separate location, as without this key, you cannot access your bitcoin.