Money

29 Fascinating Facts About Bitcoin

May 10, 2021 by
bitcoin facts

Apart from understanding the basic functions and utility of Bitcoin, we thought it might be interesting to share some interesting facts about Bitcoin you may not have known about. For instance, did you know that the FBI could be the largest holder of Bitcoin in the world (besides Satoshi)? Did you know that 20% of the total supply of Bitcoin is considered lost and gone forever?

Okay, if you already knew that, see if you already knew the rest below. Here are 29 facts about Bitcoin that any hodler should know about.

Interesting Facts About Bitcoin

1. You lose your Bitcoins forever if you lose your Bitcoin wallet (private key)

You store your Bitcoins in a digital wallet. You can sign in and check your balance. However, you need to be vigilant when it comes to storing your key and password. The password and key let you access your mobile wallet. Unfortunately, If you lose this access, you will lose access to your wallet and the money you have inside.

About 20% of the whole Bitcoin supply is believed to be lost, mainly due to computers and laptops that have been thrown away or stolen or misplaced keys. Bitcoin private key is basically an integer between one and 1077.

2. Pizza was the first bitcoin purchase in history

bitcoin pizza purchase

Interestingly, Bitcoiners throughout the world celebrate May 22nd as Bitcoin Pizza Day. On May 22, 2010, Laszlo Hanyecz, a Florida-based programmer, successfully traded 10,000 bitcoins for two Papa John’s pepperoni Pizzas.

At that time, 10,000 Bitcoins were about $41. Currently, these 10,000 Bitcoins are worth more than $64 million. As a matter of fact, there is now a crypto project called Lightning Pizza for ordering pizza.

Lightning Pizza is a U.S.-only service that allows you to purchase Domino’s pizza with Bitcoin using the Lightning Network. The Lightning Network is a service that enables fast Bitcoin payments.

3. The identity of who created Bitcoin is still unknown

satoshi nakamoto
Bitcoin was the brainchild of a mysterious group or individual known as Satoshi Nakamoto. Up to this time, no one knows who the individual behind bitcoin is. The software was registered in 2008, and in 2009 Bitcoin was released as open-source software. In the year 2010, the Bitcoin creator disappeared.

Satoshi Nakamoto is a Japanese name that means the foundation of a relationship, wise, clear thinking. However, according to some conspiracy theorists, four companies are behind these things.

Samsung and Toshiba = Satoshi
Nakamichi and Motorola = Nakamoto

What do you think?

4. You can buy and sell Bitcoin at Bitcoin ATMs

bitcoin atm

A bitcoin ATM is a kiosk that lets you enter money into the machine and get Bitcoin and other cryptocurrencies in your digital wallet. And some Bitcoin ATMs also make it possible to sell Bitcoin and to get money from the ATM machine.

At present, there are more than 5,000 Bitcoin ATMs in the world, with America having more ATMs than all nations in the world together. In fact, there are over 2,000 Bitcoin ATMs in America alone.

Here are more surprising and fascinating things you probably didn’t know about Bitcoin ATMs.

The first bitcoin ATM was installed in Canada. A coffee shop in Canada installed its first Bitcoin ATM machine Robocoin in 2013.

The first Bitcoin ATM in America became functional on February 18, 2014. The machine was installed in Albuquerque, New Mexico, and was removed after one month.

5. One unit of Bitcoin is called a Satoshi

satoshi convert

Satoshi is the smallest unit of the digital currency bitcoin. The unit is named after the bitcoin founder Satoshi Nakamoto. It is equal to 100 millionth of one bitcoin. The digital currency can be divided into smaller units to ease smaller transactions.

6. Bitcoin with a capital b and lower case b mean different things

bitcoin capital b vs lower case b

Bitcoin spelled with a capital B and lowercase b have two different meanings. Bitcoin with an uppercase “B” is normally associated with Bitcoin as the whole payment system or the network. On the other hand, bitcoin with a lowercase “b” is typically associated with bitcoin as the currency. You can use the lowercase form “bitcoin” when you mean to reference how much of the currency was transacted.

7. Bitcoin was not the first digital currency

digicash founders

Many believe that Bitcoin was the first attempt at creating a digital currency. However, it is not exactly like that.

Back in 1989, David Chaum created the first cryptocurrency called Digicash. Unfortunately, with the absence of innovation in technology in the ’80s, Digicash didn’t have the features that Bitcoin possesses and was not accepted by the people.

Besides, Adam Back’s Hashcash, Nick Szabo’s Bit Gold, and Wei Dai’s B-Money were the precursors to Bitcoin. But each of those currencies was not able to garner attention because of their suggested centralized systems.

8. You have to pay taxes on Bitcoin gains

bitcoin taxes

According to the U.S. government, Bitcoin and other cryptocurrencies are capital assets. It’s important for you to know that if you don’t account for the Bitcoins you have, you could be responsible for tax evasion. You should ensure you double-check the laws in your country and follow them accurately.

9. The biggest lost amount of Bitcoin is 75,000 Bitcoins

lost bitcoins

Today, that lost Bitcoin would be worth over $2 billion. But unfortunately, the British resident accidentally threw away his hard drive containing 75,000 Bitcoin. There are thousands of stories of people losing their Bitcoin, but this is by far the largest case.

10. Bitcoin was first created with 31,000 lines of code

bitcoin code

Satoshi Nakamoto launched Bitcoin on January 3, 2009. This unknown computer coder claimed that it took over a year to write the software, which has 31,000 lines of programming code.

Just so you know, Windows 2000, Microsoft’s flagship operating system, is made up of 19 million lines of programming code. The Bitcoin software distributes coins every 10 minutes.

11. There are over 1600 Bitcoin clones in existence

bitcoin clones

Over 1,600 bitcoin clones have been estimated to be created over the last decade. Some of these clones have disappeared, and some Bitcoin clones are still in the market.

In 2013, a bitcoin clone Dogecoin was created as a joke. This bitcoin clone had a Shiba Inu dog in its logo.

12. Bitcoin transactions can’t be reversed

bitcoin address

While traditional forms of payment can be tracked and reversed, bitcoin transactions cannot be tracked or reversed. Once the money has been sent, it cannot be recovered. Hence, it is essential you double-check the bitcoin address you are sending money to.

13. Bitcoin was the first cryptocurrency to go to space

bitcoin space balloon

Bitcoin was sent to space in 2016. Genesis Mining, a cloud computing company, tied a Bitcoin paper wallet to a weather balloon and flew it off into space. They used a GoPro to track its journey, and they even made successful Bitcoin transactions with the wallet at 21 miles altitude.

14. You can use Bitcoin to purchase things

bitcoin accepted in stores

Cryptocurrencies like Bitcoin are often used on the black market because of their anonymity. However, big companies, such as Expedia, Dell, and Microsoft also accept this digital currency as a legitimate payment. Other than that, many fast-food restaurants accept Bitcoin payments, such as KFC and Subway (in Canada). Bitcoin has also gained popularity in third-world countries among folks who don’t have access to conventional banks.

In time, it is likely that more and more places will permit the use of this digital currency and will even offer payment in Bitcoins.

15. The sender/receiver details are undisclosed

bitcoin anonymous addresses

A Bitcoin address is 34 alphanumeric characters long. It always begins with 1. An address can consist of all alphanumeric characters, except for l, I, O, and 0.

It is not possible to find out about the recipient just by using this address. This is one of the primary reasons why Bitcoin is a preferred method of carrying out transactions that are illicit. The majority of wallet programs assign every user a portfolio ID to safeguard the privacy of the receivers or senders.

16. Bitcoin transactions do not cost anything

bitcoin no fees

Banks and PayPal need you to pay transaction and other kinds of service fees. However, you can carry out Bitcoin transactions free of charge because there is no intermediary. While it’s true that some exchanges take a small fee, but this is basically to pay individuals who mine the cryptocurrency and release it into the system.

17. Bitcoin mining requires massive power

bitcoin mining

Bitcoin mining is the process of making bitcoin. The fact is the more powerful the computer, the higher the chances of mining the digital currency. The whole process of mining needs massive quantities of electricity.

It is estimated that the electricity used by the whole bitcoin network on a monthly basis is greater than the power consumed by the Republic of Ireland. Last but not least, the generation of carbon dioxide every year is equal to about one million transatlantic flights.

18. Bitcoin network is eight times more powerful than fastest supercomputers

bitcoin network speed comparison chart

Did you know that the Bitcoin network is more powerful than all the 500 supercomputers of the world combined? Experts believe that the computing power of a Bitcoin network is more than 2,046,364 Pflop/s. And about 500 supercomputers have a computing power of 274 Pflop/s.

19. Tesla makes more money from bitcoin than from car sales, at least for now

tesla bitcoin

The electric vehicle manufacturer Tesla reportedly makes more money from the digital currency Bitcoin than it makes from cars.

First-quarter results from the company show that it made more profits in the first three months of 2021 with the digital asset than it did with its car business.

The company generated a net income of $438 million during the quarter. But the electric vehicle company did not earn its record profits from selling vehicles. The company said that it sold some of the $1.5 billion worth of the digital asset that it bought back in February, contributing $101 million to its net income.

20. Cold Storage is the most secure method of holding Bitcoin

bitcoin cold storage hardware wallet

You can use cold storage if you are concerned about losing your Bitcoin from a hacker. Cold storage is an offline way to store cryptocurrency and it is not connected to the internet. Bitcoin can be stored on a computer server or a USB stick. As your virtual currency is stored offline, there are no chances of illegal access and cyber hacks.

21. You can now even gamble (legally) with your Bitcoin

bitcoin gambling
You may not know but there are websites that allow legal gambling with digital currency. As Bitcoin has gained traction among online gamblers, more gambling sites have begun to accept cryptocurrency as a way of depositing money. Most of the gambling sites also permit withdrawals using Bitcoin.

22. Bitcoin is created through mining

bitcoin mining

A Bitcoin miner must solve a complex mathematical equation to create a bitcoin. However, the complexity of the equation depends on how many miners are mining for the digital currency at the moment. Because of how complicated the mathematical equations typically are, they must be calculated with powerful processors.

You can find these processors in ASICs, graphics cards, or CPUs. The process of generating bitcoins is known as mining. Miners are individuals who use these machines to unlock bitcoins. They work together in groups or compete with one another to solve a complex, unique puzzle. The first group of miners to solve the particular puzzle are given new bitcoins as a reward.

23. Around 200,000 people have made a million dollars with Bitcoin

bitcoin millionaires

This is an estimation as it’s impossible to know the profit and loss of everyone involved in Bitcoin. But it’s estimated that around 200,000 people have made at least $1 million in profit from Bitcoin either from trading, mining, or just buying low and holding it as the price increases.

24. Several countries have banned the use of bitcoin

ban bitcoin

While the peer-to-peer digital currency Bitcoin is appreciated in several parts of the world, a few nations are wary because of its threat to present monetary systems, decentralized nature, and volatility. Here is a list of nations that have banned Bitcoin.

Iran – The Central Bank of Iran has banned the use of Bitcoin in financial transactions to prevent terrorism and money laundering.

Russia – While cryptocurrency is not regulated in Russia, its use as payment for services or goods is illegitimate.

Vietnam – The government in Vietnam maintains that Bitcoin is not a legal payment method. However, the cryptocurrency is not controlled as an investment.

China – Bitcoin is not allowed in China. All financial institutions including banks are prohibited from dealing or transacting in digital currency. Since 2017, the government in China has imposed several regulations that have made things hard for bitcoin miners.

Ecuador, Columbia, and Bolivia – Ecuador, Columbia, and Bolivia are other countries that have banned Bitcoin’s use.

25. Lamborghini is the first car company to accept bitcoin as a payment method

bitcoin lambo

Did you know that Lamborghini is the first automobile manufacturing company to allow people to pay with Bitcoin? Tesla, Bob Moore Auto Dealers, BMW, and Carriage Nissan are other car companies that accept bitcoin as a payment method.

26. The FBI could be the largest holder of Bitcoin

fbi bitcoin

There was a time when the Federal Bureau of Investigation (FBI) was one of the biggest well-known holders of Bitcoin.
Back in 2013, the security service closed the online drug website Silk Road and confiscated over 144,000 bitcoins that belonged to the Silk Road founder Ross Ulbricht. The online marketplace sold illegal drugs, such as Ecstasy, opioid pills, cocaine, and heroin.

Other than that, it also sold untaxed cigarettes and forged documents.

27. A teenager turned $1000 into millions of dollars

Erik Finman

Erik Finman is one of the youngest Bitcoin millionaires in the world. When he turned 12, he got $1,000 as a birthday gift from his granny. However, instead of spending the money on a new gaming console, Finman decided to invest $1000 in the digital currency Bitcoin. This occurred in 2011 when you could buy the cryptocurrency for $12. A few years later, Finman’s investment paid off when his cryptocurrency amassed him $100,000. Today, his investment is worth millions of dollars.

28. The value of Bitcoin is unpredictable

bitcoin is volatile

The market of bitcoin is fairly unpredictable. And several individuals have lost their money because of its unpredictable market. According to the market analysis, a lot of factors explain the unpredictability of the bitcoin market. Some of these factors include wealth inequality, low liquidity, regulation, and market size.

Beginners should know these facts about digital currency before diving into the world of cryptocurrencies. Performing comprehensive research on bitcoin can help to learn about its unpredictable market and make the correct decisions.

29. There are only 21,000,000 bitcoins that can ever be mined

bitcoin

There are just 21,000,000 bitcoins that can be mined. When all the bitcoins have been unlocked, the bitcoin miners will not get block rewards because there are no more coins to be mined. However, miners will earn from the transaction fees to be collected from each validated transaction.

Wrapping up: What’s your favorite crazy Bitcoin fact?

As countless people have publicly stated, Bitcoin FOMO (fear of missing out) is greater than any other kind of FOMO. The reason is because the price increases of cryptocurrencies are astronomically exponential. Imagine being an early holder of Bitcoin in 2011 or 2012, and selling it all when it was under $100? Nobody could predict that a single bitcoin would eventually surpass $50,000 and the people who did sell early are feeling regret and FOMO like nothing else.

Unfortunately, there are thousands and thousands of stories like this and it’s painful. Which is why the Bitcoin fact that hits the hardest for us is Laszlo Hanyecz buying pizza for 10,000 bitcoins in 2010. Those coins today would be worth over $500 million. Each year the price of Bitcoin goes up, it’ll hit even harder.

Now over to you. Which one’s your favorite Bitcoin fact?