Cryptocurrencies were in the news in 2021, which fueled interest in learning how to buy a cryptocurrency and locating simple ways to buy bitcoin. However, the truth can sometimes be more complicated than fiction regarding cryptocurrencies.
It’s been a crazy ride, and we still don’t know where cryptocurrencies will go next. Before that, here are some equally wild and fun facts about cryptocurrencies and other virtual assets.
Pizza was the first commercial cryptocurrency transaction.
A Florida man paid 10,000 bitcoins (BTC) for two pizzas on May 22, 2010. And people widely acknowledge this as the first commercial Bitcoin transaction.
At the time, 10,000 bitcoins were worth around $40, making one bitcoin worth just under half a cent. You’d be a bitcoin millionaire if you had that many bitcoins in September 2022. Ten thousand bitcoins are worth more than $190 million in the market. At Öl profit, you can find more and trade crude oil using cryptocurrency.
There are over 12,000 cryptocurrencies in circulation.
There are over 12,000 digital currencies in circulation as of September 2022. While not all of them are available on exchanges, they are available, with some requiring their wallets. Many altcoins are included, including USD coin (USDC), Ripple (XRP), Solana (SOL), Binance USD (BUSD), and others.
Many coins and tokens are available because creating and distributing a new cryptocurrency are relatively simple. However, as of September 2022, the top 20 virtual currencies account for approximately 87% of the cryptocurrency market cap.
There is a maximum number of Bitcoin.
An interesting bitcoin fact is that the protocol for its network limits it to 21 million coins. As a result, cryptocurrency miners will eventually be unable to generate new bitcoins.
You are said to be bitcoin mining when you use computing power to help complete transactions on the bitcoin blockchain. And people do this through a process known as proof of work. Mining bitcoin can result in a reward such as the digital currency itself.
One man wishes to excavate a landfill to retrieve his digital wallet.
In 2013, James Howells of Wales, UK, threw a hard drive containing 7,500 bitcoins into a landfill. After realizing that Bitcoin’s value had skyrocketed recently, he looked for the disc drive with the funds. James attempted to persuade his local city council to allow him to excavate the landfill to locate the hard drive. He claims to be offering a portion of the proceeds in exchange for permission to search through the trash.
Some cryptocurrencies have applications other than coinage.
Some cryptocurrencies have more applications other than coinage. For instance, people can use the Ethereum blockchain technology for more than just payment processing and currency transfer.
While ether, the native coin of Ethereum, can be used for transactions, the underlying technology is more than just a medium of exchange. Also, people use Ethereum to execute smart contracts, which people can use to manage supply chains. Other cryptocurrencies produce their coins on the Ethereum network as well.
NFTs are not currency.
These are not cryptocurrencies, despite their growing popularity in 2021 and status as digital assets. They are tokens that people don’t use as a form of payment. Furthermore, NFTs cannot be divided or replicated.
NFTs, like artwork or collectibles, act as alternative investments. Some people consider them digital collectibles and artistic work with the potential for appreciation.
Various countries are banning crypto.
Cryptocurrencies are illegal in some countries. These countries, such as Turkey, ban cryptocurrency payments. Others, like Nigeria, prohibit cryptocurrency exchanges. However, one of the most significant bans is China‘s ban on financial institutions providing services related to cryptocurrency transactions since 2021.