Bitcoin is a digital currency that Satoshi Nakamoto created in 2009. Before its increased global adoption, the Bitcoin market was mysterious to many people. However, with time, more people are becoming interested in this digital currency and are testing their luck in investing in this virtual money. Therefore, you can invest in Bitcoin through a platform like Bitcoin Sprint
On the other hand, there are different things about this digital currency that some Bitcoin investors are not aware of yet. Here are the top five surprising facts about this virtual asset.
The Limited Number of Bitcoins
Only a limited number of Bitcoins will exist. Satoshi Nakamoto only created 21 million Bitcoins available in the market. Miners have already produced 18 million Bitcoins, meaning that only 3 million are in circulation.
On top of that, some people believe that this digital currency will be exhausted in 2140. This digital currency undergoes the halving process every four years, where the Bitcoin rewards are divided into two to limit the supply of this electronic currency. Bitcoin’s limited supply increases its demand, which translates to a rise in the price of this electronic currency. As a result, this digital currency is a perfect store of value since inflation does not affect it.
The First Bitcoin Transaction was for Pizza
Laszlo Hanyecz was one of the early Bitcoin adopters, and on May 22, 2010, he bought two pizzas with this virtual currency. That was the first time anyone used this electronic currency to purchase some physical product. Laszlo Hanyecz successfully traded $10,000 Bitcoins for two pizzas after requesting three days for some pizza dealer who would accept Bitcoins for Pizza.
After Hanyecz exchanged this digital currency for Pizza, he made people believe that this electronic currency was an asset they should invest in without fear. After the successful transaction, May 22 was named Bitcoin Pizza day.
Some Countries Ban Bitcoin
Although El Salvador and the Central African Republic have legalized this digital money, some countries have banned their citizens from trading this virtual currency. Some countries like Turkey do not allow Bitcoin payments, while others like China have banned most Bitcoin-related activities.
On the contrary, Nigeria is among the world’s top five countries with a high Bitcoin adoption and usage rate. However, one of the most significant bans on this electronic currency was in China. Nevertheless, it is impossible to completely ban the use of this digital currency since it promotes financial inclusion.
Bitcoin Prices are Volatile
The price of this digital currency frequently fluctuates, meaning that the value of Bitcoin is unstable. However, this electronic currency is an asset class that many investors are taking advantage of its benefits.
In addition, influential people like Elon Musk influence how people associate themselves with this electronic currency. For instance, if he claims that Tesla accepts Bitcoin payments, more and more will get involved with this virtual money. On the other hand, if Musk claims that Bitcoin is unreliable, his followers will boycott the currency.
Bitcoin is Taxable
The tax measures on this virtual currency depending on the country in which you reside. This digital currency has not entered the mainstream markets, but tax agencies globally are trying to ensure they get a share of the enormous returns from Bitcoin investments. Some countries expect people to pay tax on their Bitcoin profits like the United States.
The Bottom Line
Overall, every investor and trader should remember those top five facts about this digital currency. Despite Bitcoin’s volatile price, some investors have become millionaires from Bitcoin investments, while others have lost a significant chunk of money.