crypto

5 Facts About Bitcoin

Fact #1 – There Is A Finite Supply Created

There’s a limited amount of Bitcoin. When Bitcoin was founded, the creator of the cryptocurrency only made 21 million. Right now, over 16 million are in circulation, however, more are being mined every day.

Fact #2 – It’s Important To Never Misplace Your Password/Keys

You store your Bitcoins in a digital wallet. You can log in and check your balance. One thing, though, you have to be very careful when it comes to storing your password and key, which is what allows you to access your digital Bitcoin wallet. If you lose this access, you’ll lose access to your Bitcoin wallet and the amount you have inside.

Fact # 3 – You Must Report How Much You Own

Regulations for Bitcoin are in fact still in the making, however, the U.S. government has declared that Bitcoin – as well as other cryptocurrencies – are in fact capital assets, just like bonds and stocks. Keep in mind that if you don’t account for the Bitcoins you are in possession of, you could be on the hook for tax evasion.

Fact # 4 – It’s Created Through Blockchain

Bitcoin is created through process is called mining and the core technology behind it is called Blockchain technology. It’s dependent on a network of nodes, ensuring the integrity of transaction history by achieving consensus.

Fact #5 – The Inventor Is Technically Unknown

Although Satoshi Nakamoto has been credited with developing Bitcoin in 2009, we know that most certainly this is a pseudonym for a single person or a group of people who were working on the idea. Nakamoto vanished from the Internet back in 2011, leaving only a few clues as to who he/they might be.

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