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Bitcoin, Bitcoin, Bitcoin. It's one of the biggest buzzwords in the finance sector and has singlehandedly helped bring blockchain technology to the forefront.
Great as it is, it's important to take a look at the whole picture of how Bitcoin impacts our world. Many major details are lost in the discourse about everyone's favorite cryptocurrency.
Even experts like Bitcoin influencers tend to forget a lot of important facts about Bitcoin. Here are some of the most interesting (and sometimes worrisome) things everyone forgets about Bitcoin.
Bitcoin was originally exclusively used by society's outcasts.
Though it was only 10 years ago, the beginnings of cryptocurrency remain one of the things everyone forgets about Bitcoin. Bitcoin was not immediately backed by finance folk. In fact, financiers hated it with a passion.
The first groups to offer value to Bitcoin were hackers and criminals, who used it while trading on the dark web. As Bitcoin became increasingly popular, others started to invest.
Despite its popularity as an investment, Bitcoin was originally an experiment.
The inventor of Bitcoin, Satoshi Nakamoto, never intended for Bitcoin to be such a major fixture in the cyber world. If you read Satoshi's thought experiment, it becomes clear that Bitcoin was an economics experiment.
Over the years, many people pointed out the experimental nature of Bitcoin. The weird thing is, no one seems to care that it was just meant to be a hypothetical thing.
Contrary to popular belief, Bitcoin is traceable.
The most common myths about cryptocurrency involve the idea that cryptocurrency is totally untraceable. This is just not true, which is what makes it one of the most commonly misunderstood things that everyone forgets about Bitcoin.
It is possible to trace Bitcoin transactions; it just takes a lot of time and effort to do so. So far, multiple sex offenders and drug organizations have been caught using this method.
There's nothing backing Bitcoin.
If you're thinking of investing in Bitcoin, make sure you remember one of the things everyone forgets about Bitcoin's value...
With most other investments, there's a guarantee attached to their value. Fiat money is guaranteed by the government organization that issues it, which offers it a form of backing. Stocks and bonds are backed by company performance and assets.
Bitcoin? Not so much. But, you shouldn't back away quite yet. Some might argue that most fiat money isn't backed by anything because it can no longer be exchanged for its weight in gold.
You can lose Bitcoin by burning your hard drive if you don't have a wallet.
Most people these days have Bitcoin wallet apps on their phone that store their investments in a decentralized cloud—and that's great. You really, truly need a wallet if you want to invest in Bitcoin while having some peace of mind.
Storing Bitcoin is a lot like storing cash. You can buy and sell using it. You can store it in a wallet like a bank account. However, if the hard cash you're carrying is destroyed, it's gone for good.
One of the things everyone forgets about Bitcoin is the fact that coins that are placed into hard storage can be destroyed if the storage fails. So, you may want to look into getting a wallet.
No one knows who Satoshi Nakamoto is.
If you thought you knew who invented Bitcoin, you're wrong. No one knows who Satoshi Nakamoto really is, since "Satoshi Nakamoto" is actually just an alias.
We don't really know who Satoshi is, at all. It's been one of the biggest mysteries about Bitcoin. The DHS has managed to pinpoint who it is, but won't tell the public.
As a result, we don't know who this person or group of people is. Despite the mystery around it, the anonymity of the world's most elusive billionaire remains one of the most forgotten facts about crypto.
One man called Craig Wilson claims he's Satoshi. However, it's still doubtful at best.
You don't have to buy Bitcoin to invest in Bitcoin.
Most people assume that you have to buy Bitcoin in order to invest in Bitcoin. One of the things everyone forgets about Bitcoin is that you can invest in it through a variety of methods.
There are a lot of ways to invest in Bitcoin without buying it. You can invest in ETFs that have Bitcoin futures, or invest in NVIDIA stock.
All Bitcoin transactions are faster than credit cards when it comes to settling money.
Most people are aware that it can take 10 minutes or so to hash a Bitcoin block. Bitcoin has a reputation for being slow when it comes to transaction speed, but in reality, it's actually pretty fast when it comes to cash resolution.
Credit card transactions can take months to have funds fully clear. Checks take a day or so. Bitcoin actually only takes 10 minutes to have all funds settled in a transaction.
There's a limited number of Bitcoins that can be made.
Due to the algorithm Satoshi Nakamoto used to create Bitcoin, this cryptocurrency isn't infinite. There is a set amount of 21 million Bitcoins that can be made through mining. So, eventually, there will be no payment for proof of work transactions.
That being said, miners shouldn't worry about Bitcoin quite yet. Experts believe we'll have at least until 2100 before the last Bitcoin will be created via mining.
Finally, it's worth pointing out that all sales are final with Bitcoin.
Be careful what you spend your coins on! Bitcoin, unlike other currencies people use, does not have a way to reverse a transaction once it's been made. All sales are final, unless you can convince the seller to pay you back in a separate transaction.