10 fundamental facts to affirm your understanding of Bitcoin

  1. The currency is controlled by everyone rather than someone. As a decentralised currency there is no Federal Reserve or Reserve Bank to control Bitcoin. This means there is the opportunity for anybody around the world to trade, and not be denied a fair chance or equal access to the market.
  2. Bitcoin is personally anonymous. Due to this decentralization, Bitcoin is also anonymous. There is no overarching authority that can see and identify who is who in the trading sphere. This might sound scary at first, but actually..
  3. Bitcoin is publically visible. While personal information cannot be seen, transactions between users are publicly visible for all to see. Just like how you can see a car’s license plate but don’t know the name of the car’s owner, this provides a mix of personal privacy, public transparency to the market. It is no surprise then…
  4. The FBI holds one of the largest collection of Bitcoins in the world. Like any currency, Bitcoin can be used for good and bad purposes. Critics have occasionally cited unfairly Bitcoin’s setup as being a ‘Wild West’. Yet, when the FBI shut down the online drug selling Silk Road in 2014, they seized all the Bitcoins obtained by selling illegal goods. This was a landmark moment for accountability in the market.
  5. Store your Bitcoin safely is vital. Like any form of investment, taking steps to ensure your Bitcoin is stored securely is important. Because Bitcoin is anonymous and has no governing authority, if you lose track of where you stored your Bitcoin they will be lost forever! Fortunately, as our guide shows it is easy to store your Bitcoins safely.
  6. It is perception over technology that is valuable for Bitcoin. Bitcoin is a unique digital investment, but also has similarities to traditional stocks in a company. Unlike gold or silver or real estate, Bitcoin has little tangible use in our day by day lives, but is closer to art and music in that it offers a perceived utility that people recognize as useful and essential.
  7. Bitcoin doesn’t like middlemen. Unlike traditional stocks and other financial transactions, trading Bitcoins is essentially free. They may be a minimal cost to undertake the trade – often just a couple of cents – but no longer do traders need to deal with minimum costs to a tune of $25 USD or a certain % of a trade overall. This is bad news for bankers, but great news for traders.
  8. Bitcoin is capped at 21 Million. Unlike a treasury with government money that can be printed on-demand, Bitcoin is capped at 21 million coins. Users who mine Bitcoin receive a reward in the form of Bitcoin payment each time they complete a mining cycle, but the supply is not limitless with over 80% of the coins available already mined. This set scarcity is one of the reasons Bitcoin’s price has grown so substantially in comparison to other traded currencies.
  9. Bitcoin and Pizza’s special relationship. Revolutionary moments often have astounding beginnings, like the Wright Brothers taking flight, and then Apollo 11 with the moon landing. Bitcoin began with Pizza. The first ever trade of Bitcoin online occured when one trader paid another user 10,000 BTC to buy him two pizzas. Those 10,000 coins are now worth millions today.
  10. It is the first major digital asset to have real world uses. We’ve had digital uses of currency for a long time now. Online banking, Paypal, and other such methods allow you to use real world money online. Bitcoin is the first to turn the process around. Taking a digitally-created asset, and turning it into currency that can be spent in the real world. Today, you can buy goods in the real-world anywhere a Bitcoin debit card is accepted, and yes; many pizza shops proudly accept Bitcoin.

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Financial Technological Networker , developing Crypto Currency Mining enthusiast , here in an African Continent !! A participant in various FinTech Platforms Local and Globally !!

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