What is Cryptocurrency: All You Need to Know with 10 Interesting Facts


Last updated on December 7th, 2018 at 10:22 am

Unless you’ve been living under a rock – you must have come across articles on the internet discussing cryptocurrencies. Cryptocurrency trading has become such a big thing of late that it has taken over prime time news discussions and parliamentary debates. Cryptocurrencies are getting more and more popular with every passing day – and everyone wants to try their hands at trading. If you are still a beginner here, look into the various cryptocurrency guides available online.

What is Cryptocurrency

However, before going any further – let us take a look at what cryptocurrencies are and how they function:

What is a Cryptocurrency?

Cryptocurrencies are basically virtual currencies which can be used to make transactions over the blockchain system. The concept of cryptocurrency based economy is that crypto-transactions are cheaper and faster – especially when it comes to international trade. Moreover, it is a decentralized system, which means that there is no central authority which has the power to control or manipulate the system.

The blockchain system is the driving principle behind cryptocurrencies. It is a revolutionary concept which has changed the way we know several industries to be. Blockchain-based systems have found use in various sectors ranging from healthcare to finance to insurance to even governance. Blockchain systems bring in transparency and infuse trust in the system because of their decentralized nature. The cryptocurrency revolution kicked off when Bitcoins were created – a little less than ten years ago. And it continues to impress and dominate the markets.

Let us now take a look at some popular cryptocurrency facts:

10 Interesting Cryptocurrency Facts That You Must Know!

1. There are over 1500cryptocurrencies

Ever since the first cryptocurrency, Bitcoin, was created – there have been over 1500 other cryptocurrencies which have made their way into the markets. Every cryptocurrency apart from Bitcoins is known as an ‘altcoin’ – an alternative currency. While many of these currencies have been created just for the sake of raising money – there are some currencies which actually have a use case and are already having a major impact on various sectors and industries across the globe.

2. No one knows who created the first cryptocurrency

The identity of Satoshi Nakamoto – the man who created the first Bitcoin continues to remain anonymous after all these years. It has been almost a decade since the first cryptocurrency was created – but no one really knows the identity of the person or the group of people who created Bitcoins. While there have been several people who have claimed to be Satoshi Nakamoto over the past few years – it is, in all probability, just a means to gain attention. The man who created cryptocurrencies remains unknown, probably for the sake of his own well being.

3. Someone once paid 10,000 Bitcoins for 2 Pizzas!

Back in the early days of Bitcoin, in the May of 2010, when the price of cryptocurrencies was far from booming – someone once paid 10,000 Bitcoins to purchase 2 Pizzas from Papa John’s Pizza! Compared to the most recent rates, it would be worth somewhere around $80 Million today. While no one could have seen that coming – those pizzas better be worth every single penny spent on them.

4. The crypto markets can be extremely volatile

The cryptocurrency markets tend to be extremely volatile. This is the one fact that even beginners know about cryptocurrencies. 2017 began with Bitcoin’s prices being $950 and by December of the year, the price was beyond $19,500. Bitcoin grew by 1400% last year and that is hardly an impressive statistic as currencies such as Ethereum grew by 9000% and Ripple jumped by 36000% over the course of the year. However – in the first quarter of 2018 – most of these cryptocurrencies fell by 50 to 60%! Markets are extremely volatile and traders need to invest carefully.

5. It will take over a century for the last Bitcoin to be mined

There are only 21 Million Bitcoins which can ever exist. Bitcoin mining algorithm has been designed in such a way that it will ensure that the mining difficulty keeps increasing at a constant pace and that the last Bitcoin will be mined in October 2140 – over a century away. Regardless of how the devices used for mining improve, the last Bitcoin will not be mined before the year 2140.

6. Banks are a fan of blockchain but not so sure about cryptos

Of late, banks across the world have adapted to the blockchain technology really well. The Bank of America has filed multiple patents, Indian banks are getting on the blockchain system while several banks in Japan have joined Ripple’s blockchain network. While banks are increasingly positive about the use of blockchain in the banking and finance sector – cryptocurrencies continue to be a topic of dispute as banks in various parts of the world (India, Chile, Zimbabwe, Pakistan among others) have issued banking embargos on those dealing in cryptocurrencies!

7. Some countries have banned cryptocurrencies

While there are some nations where cryptocurrencies are being looked down upon by the banks – there are other nations where governments have imposed strict bans. One such nation is China – where cryptocurrencies are legal – but cryptocurrency exchanges and trading platforms of all sorts are banned! Rumors of a similar move from South Korea were also rampant earlier in the year.

8. Some countries have their economy totally dependent on cryptocurrencies

While there are some nations which have gone strict on cryptocurrencies – there are others which are totally dependent upon them. Especially when it comes to countries which have economic sanctions imposed upon them, such as North Korea, Russia, Iran and Venezuela – cryptocurrencies are being used to fund their economy as most nations have broken off trade ties with them.

9. Exchanges can charge up to a million dollars for listing cryptocurrencies

Reports from earlier this year suggest that cryptocurrency exchanges – which are already a massively popular and profitable business – are charging up to a million dollars to list new cryptocurrencies on their exchange. The more popular an exchange – the higher they are likely to charge.

10. A majority of cryptocurrency traders are beginners

An eToro survey from May 2018 reports that over 81% of cryptocurrency traders are beginners. About 12% of these traders are intermediary traders while the remaining 7% are experienced players in the markets. It is a very young market involving a very new kind of investors.

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