Digital currencies have burst onto the market and created a plethora of new investment opportunities. But before you plunge into the world of cryptocurrencies, hire a professional, or worry about how to find a good ICO, here are mind-blowing facts about cryptocurrency every rookie should know.
The founder of the first cryptocurrency is not known
No one knows for sure the founder of Bitcoin, which is the first cryptocurrency. Everybody knows that it is a mysterious individual or a group of people with a pseudonym Satoshi Nakamoto. Some people say that Satoshi Nakamoto didn’t plan to invest in digital currencies. His first intention was to develop a decentralized cash system. Some people believe that this mysterious person owns more than 1 million Bitcoin units.
There are thousands of cryptocurrencies
At the moment, there are more than 1500 cryptocurrencies. The common ones include Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), Zcash (ZEC), Dash (DASH) and Ripple (XRP). Bitcoin is the most popular because it was the first tradable digital currency to be introduced to the market. Currently, the cryptocurrency comprises up to 54 percent of the aggregate market cap of all digital currencies.
The blockchain technology is where the real value lies
Despite a lot of emphasis on cryptocurrencies trading, the Blockchain technology is where the real value lies. It is a decentralized infrastructure that houses and manages all digital currencies. It is also where all payments records and transfer transactions take place. In fact, Blockchain technology is where all big businesses are based on.
Cryptocurrencies are volatile
It is no secret that all cryptocurrencies are volatile. ICO strategy is also tough to navigate. The reason for the volatility is the fact that cryptocurrency trading happens on various digital currency exchanges rather than in a centralized place. Despite the volatility of digital currencies, their aggregate market cap has increased by more than 3,000 percent in the recent years.
The most expensive pizzas in the world’s history were paid in Bitcoin
Cryptocurrencies are legal all over the world except a few countries like China, Russia, Thailand, Vietnam, Columbia and Taiwan. You can use them to buy various items on Amazon, GameStop, eBay, WordPress, Apple’s App Store, Newegg, Expedia, Subway, and other online retail stores. Otherwise, the most expensive pizzas in the world’s history were paid in Bitcoin in 2010 by Hungarian programmer Laszlo Hanyecz.
There are more than 6 million cryptocurrency wallets
Nobody knows the exact number of cryptocurrency wallets in the online cyberspace. Regardless, the total amounts of active cryptocurrency wallets are estimated to be more than 6 million. It is also estimated that more than half of these wallets can store more than one digital currency.
You will lose all cryptocurrencies if you lose your crypto wallet
You have heard it correctly. You will lose all your digital currencies if you lose your crypto wallet. That said, you need to secure your digital currency wallets including your private key. Some of the things you can do to secure your wallet include using two-factor authentication, backing up your wallet, encrypting your wallet, incorporating multi-signature, keeping your software up to date and much more. You also want to be careful when using bitcoin ATM and logging your details online as your private key can be compromised.
Not everyone is a believer of cryptocurrencies
Despite the continuous surge in cryptocurrency, not everyone is a believer of them. In fact, many CEOs of big companies referred to cryptocurrencies as a well thought fraud worse than pyramid schemes. Also due to the recent fluctuations of some digital currencies, some people say that the whole idea of cryptocurrency won’t end well. Regardless, there are big companies and government agencies that have embraced digital currencies. For instance, the FBI has the biggest Bitcoin wallet with an estimated $120 million.
Cryptocurrencies Operate 24/7
Blockchain technology that supports various digital currencies is not only decentralized but also operates 24hrs and 7days in a week. This is different from traditional banking systems which run only during the day and particularly on weekdays. The absence of middlemen in blockchain technology also reduces times and transaction costs.