Cryptocurrencies are the talk of the town with the recent rise of Bitcoin’s price to $7,000. But clearly, all that glitters is not Bitcoin. So here are 10 facts you must absolutely know before you delve into the cryptic world of cryptocurrencies.
Bitcoin wasn’t the first digital cryptoasset to be created.
The first successful attempt at decentralized digital cash, by Satoshi Nakamoto, believed to be a group of people–Bitcoin brought cryptocurrency into the public eye. However, it wasn’t the first attempt at creating a digital currency. David Chaum’s DigiCash was one of the initial attempts, though it didn’t last long.
Cryptoassets can be used in place of fiat cash
A man once used 10,000 bitcoins to buy 2 pizzas. If he hadn’t made that choice, he would have been a millionaire by now! Japan’s low cost airline, Peach Aviation will soon accept BTC as a payment option.
One of the biggest reasons for success of digital currency is anonymity
Millennials love the concept of cryptoassets and are pushing for it to be used with fiat currency because blockchain based transactions are not tied to any authority. The system is transparent and the database is available to everyone.
The number of Bitcoins are finite.
There are only 20 million bitcoins available, and only about 4 million are still left to be mined. While the number sure seems big, as we get closer to the end, the prices should increase. It is because of this reason that other cryptoassets such as Ethereum and Litecoin are gaining popularity.
At one point, US Government was one of the largest holders of Bitcoin
As we have already stated, Bitcoin can be used for activities that fall in the grey area of law. When the FBI successfully shut down Silk Road, a darknet website used to sell and purchase illegal products, it took over its Bitcoin Wallet, making it the holder of a large amount of bitcoins.
Cryptocurrency has the potential to become a global currency
Jack Dorsey, the CEO of Twitter and Square, believes it will unite the globe by being a single currency for the world. With such confidence by a giant company, we might soon be trading in cryptocurrencies!
First Bitcoin Billionaires
The Winklevoss Twins-Cameron and Tyler, are counted as the first Bitcoin billionaires. They hold over $1 billion in bitcoins.
Indian Government will set up a panel to regulate cryptocurrency trading
Indian Government may not have been very welcoming of cryptocurrency initially, but the Finance Ministry may set up a panel to determine the cryptocurrency trading laws in India.
Income Tax on Bitcoin trading in India
Indian laws allow one to earn and declare gains on Bitcoin-and pay taxes on it. The future for the cryptocurrency seems bright in India, despite some raised eyebrows from the finance ministry.
India’s Bitcoin Exchange
Unocoin makes it easy to buy, sell, and store Bitcoin, following the basis of KYC-AML (Know Your Customer-Anti Money Laundering) guidelines. It makes it easy for traders of BTC to keep in touch with the latest trends and connect to traders all around the globe.