16 Amusing Facts About Cryptocurrency

16 Amusing Facts About Cryptocurrency

Cryptocurrency
April 27, 2022 by Diana Ambolis
240
People are learning how to buy bitcoin and looking for simple ways to accept Bitcoin as interest in cryptocurrency grows. It’s understandable that some potential investors want to learn more about how digital assets work. However, when it comes to cryptography, the truth can sometimes be stranger than fiction. It’s been a crazy ride, and
Who Accepts Bitcoin and Other Cryptocurrencies?

People are learning how to buy bitcoin and looking for simple ways to accept Bitcoin as interest in cryptocurrency grows. It’s understandable that some potential investors want to learn more about how digital assets work. However, when it comes to cryptography, the truth can sometimes be stranger than fiction.

It’s been a crazy ride, and we still don’t know where cryptocurrencies are going, but here are some equally wild facts regarding cryptocurrencies and other digital assets.

1. Pizza was the first commercial bitcoin transaction.

A man in Florida paid 10,000 bitcoin for two pizzas on May 22, 2010. The first commercial Bitcoin transaction is often regarded as this.

Ten thousand bitcoins were valued at around $40 at the time, making one bitcoin “worth” a little less than half a cent. If you had that much money in bitcoin today, it would be worth about $350 million.

2. There are over 9,500 cryptocurrencies in circulation.

There were about 9,500 cryptocurrencies in existence as of March 2022. Because it’s relatively easy to produce a cryptocurrency and distribute it, there are a plethora of coins and tokens available.

3. The overall number of bitcoins available is restricted.

The limit for Bitcoin was established at 21 million when the protocol was created. As a result, no more bitcoins can be mined at some point in the future.

Mining is defined as assisting in the completion of transactions on the Bitcoin blockchain in exchange for a payout in bitcoins. Every 210,000 blocks, the reward is halved, which happens every four years. Some estimates put the total amount of circulating Bitcoin at almost 19 million as of March 2022.

4. One man wants to dig up a landfill in order to reclaim his digital wallet.

James Howells, a Welshman, tossed out a hard disk containing 7,500 bitcoins in 2013. He began seeking the drive when he discovered how much the value of Bitcoin had risen in previous years. He’s now attempting to persuade his municipal council to allow him to excavate the waste in order to locate the drive. He claims that if the city permits him to sift through the trash, he will offer a percentage of the proceeds.

5. Some cryptocurrencies, such as Ethereum, have more purposes than just being a coin.

Aside from being a currency, several cryptocurrencies have other applications. More than merely processing payments and sending money can be done using the Ethereum blockchain.

While the native coin, ether, can be used for transactions, the underlying technology is more than just a means of exchange. Ethereum can also be used for supply chain management and to execute smart contracts. Other cryptocurrencies use the Ethereum network to create their coins.

6. Gas is the term for Ethereum payment.

On the Ethereum blockchain, you must pay for “gas.” The computing effort required to conduct a transaction on the Ethereum network is represented as gas.

Even if you’re just converting another coin to ether, you’ll need to pay for gas if you use the network for apps or transactions. Gas fees can be pretty significant in some situations, depending on the trade and traffic on the blockchain.

7. One of the first blockchain games is CryptoKitties.

CryptoKitties is one of the earliest blockchain games, and it allows you to breed one-of-a-kind digital cats. CryptoKitties are not a currency but rather a type of non-fungible token (NFT).

Because each kitten is one-of-a-kind and cannot be duplicated, they have a one-of-a-kind value, similar to artwork. CryptoKitties, by the way, is based on the Ethereum blockchain.

8. The most valuable CryptoKitty was sold for 600 Ethereum.

Someone paid 600 ETH for a CryptoKitty Dragon in 2018. 600 ETH was worth around $170,000 at the time of the sale. However, with the price of an ether exceeding $2,500 today, that 600 ETH would be worth more than $1.5 million. That’s a really pricey digital kitty!

Also, read – Top three Cryptocurrency investors should know about

9. Non-functional tokens (NFTs) are not currencies.

NFTs are not cryptocurrencies, despite their growing popularity and status as digital assets. It’s a type of token that isn’t used as a means of exchange. NFTs, on the other hand, cannot be divided or duplicated.

NFTs, like artwork or collectibles, are becoming increasingly attractive as alternative investments. In fact, some people consider them as digital artifacts and artwork with the potential to appreciate in value. There are even NFTs that work in a similar way to digital sports trading cards, such as those supplied by NBA TopShot.

10. Dogecoin started off as a joke.

In recent months, Dogecoin has become one of the most popular cryptocurrencies. On the other side, the token started out as a joke.

The idea was that there were a lot of coins just getting started out there. As a result, the Dogecoin team decided to make the token appear like a surprised Shiba Inu dog. This was a popular meme when Dogecoin was initially introduced in 2013.

The price of Dogecoin is continuously fluctuating, despite the fact that there is a lot of money in it right now.

11. The creator (or creators) of Bitcoin remain anonymous.

Bitcoin’s creator, “Satoshi Nakamoto,” is largely credited. The protocol’s paper, on the other hand, was sent out via a cryptography mailing list, and the author is still unknown.

Satoshi Nakamoto’s identity has been the subject of much speculation, but no one knows anything about him. Elon Musk has a lot of clouts when it comes to bitcoin valuations.

Elon Musk has contributed to the recent massive volatility in bitcoin pricing. When he tweets or speaks about cryptocurrencies, the market pays notice. His passionate fans, at the very least, are paying notice.

Musk is one of the big reasons that influenced the price of Bitcoin and Dogecoin, as well as the cryptocurrency sector as a whole, just by declaring which coins Tesla would take for car purchases. Many investors are still looking for ways to invest in Tesla despite Musk’s antics.

13. Cryptocurrencies are illegal in some jurisdictions.

In several nations, cryptocurrencies are prohibited. Cryptocurrency transactions are not permitted in some countries, such as Turkey, while cryptocurrency exchanges are not allowed in others, such as Nigeria. One of the most notable recent limitations in China’s prohibition on financial institutions selling services related to cryptocurrency transactions.

Even while authorities can restrict access to service providers and shut down exchanges, outright prohibition of cryptocurrency use is nearly difficult. However, with one of the world’s largest economies against cryptocurrencies, it’s tough to anticipate how things will turn out.

14. In the past, China accounted for over 65 percent of cryptocurrency mining.

China recommended penalties for telecommunications firms and anyone who use their equipment for mining in May 2021. China’s share of the global hash rate had reduced to zero by August 2021 as a result of its intense crackdown.

Researchers suspect that some underground mining is still going on, camouflaged by the use of VPNs (VPN). However, China’s fast action, which resulted in a rapid halt in Chinese cryptocurrency mining operations, highlights the cryptocurrency market’s sensitivity to large-country policy decisions.

15. The price of cryptocurrency is quite variable.

Cryptocurrency values are characterized by significant price volatility. It’s very uncommon for a currency to lose 30% to 50% of its value in a single day, only to witness enormous rises a few days later. Because it’s a new asset class, people are trying to figure out how to value different currencies.

Furthermore, cryptos generate a lot of publicity due to the celebrities around them. As a result, if something becomes unpopular, it may quickly lose value, leaving you with irrecoverable losses.

16. You must still pay taxes on your cryptocurrency profits.

You will have to pay capital gains taxes if you invest in cryptocurrencies and make a profit. You may be required to pay taxes on long-term or short-term investment gains or as income, depending on how you handle your crypto and how you obtained it.

For example, in 2011, I received one bitcoin in exchange for an article, and it was deemed revenue. However, if I sell the Ethereum I purchased in 2016-2017 today, I will profit from long-term capital gains. In April, I experimented with Dogecoin, which resulted in short-term capital gains. Everything is subject to taxation.