Cryptocurrencies are now the order of the day. Cryptocurrencies are digital currencies that are also used as a medium of payment just as fiat currencies. Cryptocurrency uses cryptography to encrypt the system, thereby making sure there are safe transactions and Many people still don’t know what cryptocurrencies are, and some that know do not know some facts about it.
These are five of the interesting facts you should know about cryptocurrencies.
- Inventor of bitcoin is unknown.
Bitcoin was invented in 2009 by an individual or group that used the name, Satoshi Nakamoto. Many people believe the person is a Japanese but up to date, no one actually knows who Satoshi Nakamoto is. He is known for being the first person to implement the blockchain technology The person was involved in the development of bitcoin right from the beginning till around 2010. Although he has dropped some details like date of birth and location, no one has been able to verify that. He doesn’t speak about his identity, so no one really knows who the inventor is.
- Money is made from trading Cryptocurrencies.
Cryptocurrencies have been known as a method for earning money on exchanges. Simply buying bitcoin for a while and selling when the value increases can add to your income. However, there are trading platforms where people with good knowledge of forex trading can earn by trading cryptocurrencies. They can either be traded for other cryptocurrencies or for fiat currencies.
- The number of cryptocurrencies has increased greatly.
The number of cryptocurrencies that are listed by coinmarketcap is over 1,300. As at the start of 2015, there were just about 500 cryptocurrencies. The general usage and popularity of bitcoin and other altcoins have led to the invention of other cryptocurrencies. The main cryptocurrency that was in use around 2015 was bitcoin, but since 2016, we have seen different other cryptocurrencies appearing on the market and becoming popular. As of 2018, there are now more than 1,300 cryptocurrencies, and the most widely used ones are bitcoin,ethereum, litecoin, ripple, bitcoincash, monero, and dash among others.
- Cryptocurrency platforms are decentralized.
The main reason why many people choose to use cryptocurrencies is because of its decentralized nature. The blockchain technology on which the cryptocurrency platforms are built are decentralized – they are not controlled by any general organization or government. The blockchain technology is highly secure for transactions, which makes a lot of individuals and businesses enjoy it.
- Some countries do not allow cryptocurrencies.
As popular and transparent as cryptocurrencies are, there are some specific countries that still do not believe in cryptocurrencies and its operations. Since the cryptocurrencies cannot be controlled by the government or any entity, they have decided to ban the citizens of the country from using cryptocurrencies as means of exchange and payments. Some countries that are known for this act are Morocco, Nepal, Bolivia, Bangladesh, and Kyrgyzstan. There are other countries that are still planning on banning the use of cryptocurrencies.
An important thing that was not mentioned but needs to be known by newbies to cryptocurrency is that bitcoin transactions cannot be reversed. Once you complete any bitcoin transaction, it can not be reversed. Take, for instance, you transferred to a wrong wallet and you intend to get it back. There is no way to do that, and since there is no entity controlling cryptocurrencies, you can’t do anything about it. Therefore, it is strictly advisable to verify the address of the receiver before authorizing a transaction.