10 Facts You Didn’t Know About Bitcoin

How Does Bitcoin Work?

Any significant phenomenon sooner or later acquires legendary facts. Bitcoin (BTC) is one of the most amazing innovations, its nature remains a mystery to many. This is one of the most fantastic take-off stories and the real facts about Bitcoin are often perceived as fiction. Let’s go in order.

1. Mysterious Creator

The name Satoshi Nakamoto is known to almost everyone who is interested in cryptocurrency. It was he who introduced bitcoin to the world in 2009 and disappeared from the network in 2010. It is still not known whether this person is alive or dead, whether he existed at all or is it a collective pseudonym of a group of people. There is a hypothesis that the nickname is formed from the names of several large companies by abbreviations.

2. Bitcoin is not the First Cryptocurrency in History

Bitcoin is the first successful cryptocurrency. It is his success that forces him to be considered the first digital currency, although this is not true. The first ever digital currency was DigiCash, created in 1989 by David Chaum. It existed for 9 years and went bankrupt in 1998. DigiCash is considered the predecessor of BTC.

3. The Smallest Fractional Part of Bitcoin

Many users are sincerely convinced that a Satoshi equal to 0.00000001 BTC is the smallest part of Bitcoin. In fact, there is an even smaller unit, the millisatoshi. 1 millisatoshi = 0.001 satoshi = 0.00000000001 BTC. This splitting was introduced to simplify transactions with low fees.

4. In 2010, Anyone Could Get 5 Bitcoins for Free

In 2010, Gavin Andersen developed a Bitcoin collector to distribute BTC to people in order to popularize cryptocurrency. If anyone had said then that the coin would be worth $ 58,330 in February 2021, they would probably have been considered insane.

Now, free bitcoin units are also occasionally issued, but then usually we are talking about small amounts in satoshi.

5. First Payment of a Real Purchase in Bitcoins

This historic event took place on May 22, 2010 in Florida. A guy named Laszlo Hanets bought two pizzas from Papa John’s for 10,000 BTC. At that time, it was about $ 41 and this amount could hardly be considered a serious loss. And now these pizzas have a chance to go down in history as the most expensive food in the world.

6. Bitcoin Mining is One of the Most Energy-intensive Processes of Our Time

Bitcoin mining farms consume about 6 trillion kilowatt-hours of electricity in total. Such a figure is difficult to imagine, even knowing how does Chia mining work. For comparison: in 2020, Germany produced 564 billion kilowatt-hours of electricity, which is more than 10 times less than miners use.

7. Banning Bitcoins

Governments of different countries still treat bitcoin very differently. In many countries, it is recognized as legal tender, some categorically prohibit its use, such as Ecuador and Iceland. However, the lack of centralized governing bodies for cryptocurrency means that it is nearly impossible to ban or completely destroy it.

8. Limited Offer

BTC is a finite resource. The number of coins in circulation will never exceed 21 million. Moreover, it will begin to decline in the foreseeable future. By the end of 2020, more than 18 million coins were in circulation, and some of them have already been irretrievably lost.

9. Version 0.3.10 was Implemented by Accident

In August 2010, the network crashed. At block 74638, a transaction code was discovered that generated over 180 billion coins. Within a few hours, the programmers fixed the error, updated the system and apologized for the incorrect operation of the network. The incorrectly generated coins were destroyed and BTC received one of the first forks.

10. Unprecedented Private Key Reliability

The private key, which confirms the owner’s right to specific coins, is a number from 1 to 10 with the power of 77. Even modern technology is not able to pick this key. This guarantees complete protection of assets from theft, but if the key is lost, the owner will lose all his funds.

Hi, I'm Raj Hirvate and I am a Tech Blogger from India. I like to post about technology and product reviews to the readers of my blog. Apart from blogging i'm a big Anime fan I Love Watching Naruto, One piece and Death Note.