If you’re not a finance and tech guru, it can be hard to keep up with the rapid pace of Bitcoin. But that doesn’t mean you have to be completely in the dark. Bitcoin was designed as a global currency transfer system, but it’s also the first global decentralized peer-to-peer electronic cash system with no central authority. This means it’s protected against government seizure like other currencies, and its ability to be used globally means international transactions are cheap and fast. In fact, there’s no fee to transfer Bitcoin between countries. Here are the 10 things You Didn’t Know About Bitcoin
1. The Mysterious Creator:
Satoshi Nakamoto is the name used by the unknown person or people who designed bitcoin and created its original reference implementation. As part of the implementation, they also devised the first blockchain database. In the process, they were the first to solve the double spending problem for digital currency. They were active in making modifications to Bitcoin’s software until December 2010. Since then, Satoshi’s involvement with Bitcoin has ended. It’s speculated that Satoshi Nakamoto could be a team of people rather than one individual.
2. The Satoshi:
Satoshi is just one of many names used to refer to the person or persons who devised bitcoin. The name comes from the fact that you need a Satoshi Nakamoto to create a Bitcoin. There have been many other nicknames for Satoshi Nakamoto, including Mythical Man. However, none are correct in English, and they’re all Japanese references because the word “Bitcoin” was a lookup by Japanese speakers. The correct Japanese translation of “Satoshi” is “clear thinking.”
3. Losing BTCs:
The number of confirmed Bitcoin transactions has steadily increased since the creation of the network. However, it’s estimated that 3.79 million bitcoins have been lost irretrievably due to forgotten passwords, failed hard drives and other misfortunes. Although you can’t spend those bitcoins, miners use them in the mining process by including transactions that transfer these “lost bitcoins” from the original owners’ wallets to new wallets.
The unrecognized micronation, Liberland, is located on the Danube River between Croatia and Serbia. The micronation has its own president, a website and a currency, which is pegged to bitcoin. The country’s motto is “to live and let live”, based on principles of self-governance, voluntary association and individual rights. The land was ceded by Croatia to Serbia.
5. Processing Power:
The Bitcoin network is a huge distributed computer network. It runs 24 hours a day, and it processes every bitcoin transaction. This makes the Bitcoin network the largest supercomputer in existence. The network has been estimated to have the same computing power as all of the world’s top 500 supercomputers combined.
6. Power Consumption:
In recent years, the growing power consumption necessary to mine bitcoin has become a hot topic. The Bitcoin Energy Consumption Index estimates that this process consumes more than 4 gigawatts, or billion watts, of electricity. This is enough energy to power over 200,000 U.S. households each year.
7. Bitcoin Ban:
In 2009, the prime minister of Iceland banned bitcoin. The government worried about the lack of transparency about who owned bitcoins and what they could be used for. Iceland also decided that it was against the country’s policy to ban something before determining its legality. In a meeting with Icelandic bankers, the prime minister cited concerns over money laundering and criminal activity as major factors behind its decision to ban bitcoin.
8. Limited Number Of Bitcoins:
There will only ever be 21 million bitcoins, and they have already reached 16.8 million as of March 2017. This means that there are 1.6 million bitcoins in circulation right now, and there is a finite amount left to be mined. By 2140, every Bitcoin will have been mined, so this supply limit should not affect the price for a long time to come.
9. The Power Of “B”:
The first recorded use of the word Bitcoin was in a paper published by Satoshi Nakamoto in October 2008. It’s not known whether this was intentional or just a coincidence, but the fact that it starts with a B has led to speculation that it’s referencing the “power of Bitcoin.”
10. Faster Than Supercomputers:
The Bitcoin network has a transaction processing time of roughly 10 minutes. This is faster than most products that run on supercomputers, though it’s possible to send transactions across subatomic particles through a quantum computer. Bitcode Prime is a great way to get started with the latest and most promising technology in cryptocurrency payment processing.
Bitcoin has tremendous potential and will continue to develop as the needs for cryptocurrency change. In the future, Bitcoin will likely be used for more than just currency transfers. For example, it could potentially replace national currencies to some extent because of its value as a decentralized, global currency. The possibilities truly are endless for bitcoin and cryptocurrency in general. As it grows and becomes more familiar to people, mainstream adoption will become the next step. As a cryptocurrency that can be used for transfers globally, Bitcoin has the potential to revolutionize the way international business is done by removing costly currency exchange fees for international payments.