Amongst all the cryptocurrencies, bitcoin is ranked at the top as it has acquired an early mover advantage. Visit the eKrona website, if you wish to make your trading journey smoother and profitable by getting the most accurate trading calls. At first, bitcoin tended to have a use case in illicit activities. Still, with time people started to get more information about the technical aspects of bitcoin and noticed the trading potential of bitcoin.
Everyone has heard of bitcoin, and many are aware that bitcoin works. But there are some exciting aspects of bitcoin and its market that very few people are aware of; let’s look at those aspects.
Bitcoins are not unlimited!
A bitcoin has a limit on the number of coins one can mine, which is 21 million. The original creator established the cap to maintain bitcoin’s scarcity. More than 18,362,000 bitcoins have been mined as of March 2021 out of a total of 21 million coins to be mined.
When will the supply run out?
It started to get difficult to mine bitcoins in mid-2016. The supply will run out in 2140 if mining continues at current difficulty levels. According to these estimations, there are just under 20 million owners of Bitcoin across the world, and about 100,000 new users are adopting Bitcoin each month.
The founder of Bitcoin is Mysterious!
The founder of Bitcoin is unknown, and his name isn’t even mentioned in the bitcoin white paper. The person who created the blockchain is Satoshi Nakamoto, a pseudonym. It is widely believed that Satoshi Nakamoto invented bitcoin and blockchain technology. Rumors were already doing the rounds that it was a Japanese programmer named Satoshi Nakamoto.
Over time, more evidence emerged showing beyond doubt that a person or persons with an unknown name in Japan was behind bitcoin and blockchain technology. Satoshi Nakamoto isn’t just an anonymous person; there are several claims about his identity by both people who claim to be him and by people who believe him to be a computer scientist from California.
Government cannot ban cryptocurrencies physically!
While many countries are still debating their policy on cryptocurrencies, their approach to tackling the problem is wrong. The government cannot ban cryptocurrencies physically; there is no formal method to do it.
They can discourage people from using them by putting up laws, but they cannot ban physical use.
China was the cryptocurrency mining hotspot!
China was the world’s cryptocurrency mining hotspot. China accounted for about 70% of the miners; hence, the mining pools are located in China due to low-cost electricity. But recently, the Chinese government started to crack down on those mining activities by collecting high electrical bills from miners, banning cloud mining services, and even arresting some people involved in bitcoin trading and mining activities.
Bitcoin Taxation scheme!
Many countries are still debating whether they should tax or not tax bitcoin and other cryptocurrencies. Bitcoin was designed to be unregulated and have no rules. It is the main reason Ethereum, ripple, and other virtual currencies started.
But, to ensure that cryptocurrency exchanges are regulated, countries like China have come up with a scheme to tax cryptocurrency traders and miners. In some countries like China, Japan, the USA, etc.
Satoshi- Smallest Unit of Bitcoin!
There are 100 billion Satoshis in total. Satoshi is a unit of bitcoin, which is equal to 0.00000001 BTC. If you have a certain amount of bitcoin, you also have a certain amount of satoshi. If you want to calculate the exact number of satoshis someone has, then all you need to do is divide your current coins by the smallest unit of satoshi.
Mining requires a particular mining machine!
Before 2016, not only ASIC miners had any chance of mining bitcoins. But after the invention of more advanced mining hardware in 2016, mining became impossible with ordinary video cards. ASIC miners are commonly known by the name of Application Specific Integrated Circuits which are only accessed with the motive of mining crypto tokens. ASIC miners were specialized chips built to mine bitcoins efficiently, but it has been proved that most of them are not very profitable. It is because so many people who bought them have lost some money due to higher electricity bills.