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Top 10 Crypto Facts You Probably Don’t Know
we will be discussing the top 10 crypto facts you probably don’t know. To newbies, the crypto world is a mysterious industry where…
With the spontaneous interest in the cryptocurrency industry growing day in day out, we will be discussing the top 10 crypto facts you probably don’t know. To newbies, the crypto world is a mysterious industry where investors make quick money.
This underlines the fact that more and more people are becoming interested in it and testing their luck with investing in digital currencies. The truth is many fail or loss interest after experiencing the hit of drastic dip.
Aside from all these, there are many crypto facts, you probably don’t know about in the digital currency world. In this article, we will discuss the top 10 crypto facts you probably don’t know before thinking of investing.
Top 10 Crypto Facts You Probably Don’t Know
1. Cryptocurrency Prices Are Volatile
2. Every Crypto Wallet As a Seed Phrase
3. One man wants to excavate a landfill to get his digital wallet back
4. Many Countries Have Banned Crypto
5. No One Knows Who Created Bitcoin
6. China is The Biggest Cryptocurrency Miner
7. NFTs and Metaverse aren’t Cryptocurrencies
8. You Pay Taxes on Your Crypto Gains
9. Ethereum Has Many Uses
10. The First Commercial Bitcoin Transaction Was for Pizza
1. Cryptocurrency Prices Are Volatile
Among the top crypto facts every newbie should know, is that its prices are extremely volatile. The prices are moving so fast that in a day there can be 30 to 50% gain or loss on a particular coin. If such happens in the stock market can be described as a crash in market value.
Additionally, all of the celebrities surrounding cryptos mean there’s a lot of trendiness associated with them. As a result, if something falls out of favour, it could lose value quickly, and you could be left with losses you can’t easily recover.
The aggregate market cap of all cryptocurrencies combined has increased tremendously. Nonetheless, bitcoin, the world’s most popular cryptocurrency, has undergone a lot of corrections of at least 20% or more. In short, cryptocurrencies aren’t for the faint of heart.
2. Every Crypto Wallet As a Seed Phrase
Two of the serious discussions in the crypto space is security and self-sovereignty; this is what having a seed phrase give to anybody with a crypto wallet. According to Coinbase, a seed phrase is a series of words generated by your cryptocurrency wallet that give you access to the crypto associated with that wallet.
Therefore, having a seed phrase gives you security and self-sovereignty which gives you room to access your crypto without having to prove your identity, and you shouldn’t have to rely on a bank or other institution to store it safely.
3. One Man Wants To Excavate a Landfill To Recover his Digital Wallet
This is another funny but sad crypto fact you should know. In 2013, James Howells, who lives in Wales, threw out a hard drive with 7,500 bitcoins on it. When he realized how much the value of Bitcoin had shot up in recent years, he went looking for the drive.
Now, he’s trying to get his local city council to allow him to excavate the landfill in an attempt to find the drive. He’s claiming to offer a portion of the proceeds if the city allows him to look through the trash.
4. Many Countries Have Banned Crypto
If you are just joining the industry, one of the crypto facts you should know is that it has been banned in many countries. Lol, your country might have banned it. The truth is, because of its unregulated and decentralized nature, some countries have chosen to outright ban the use of, and/or trading of, digital currencies.
Some countries, like Turkey, don’t allow cryptocurrency payments, while others, like Nigeria, ban cryptocurrency exchanges. One of the most significant recent bans, though, is China’s ban on financial institutions from providing services related to crypto transactions.
Nine countries – Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar, and Tunisia – have currently a full ban on crypto, according to a November 2021 Law Library of Congress report.
5. No One Knows Who Created Bitcoin
Among the top 10 crypto facts, you should know is that to date nobody knows who created the coin that change the financial world. And this remains the most surprising fact about cryptocurrency.
However, people refer to the creator of bitcoin as Satoshi Nakamoto. A popular belief is that the name is an acronym for leading tech companies – Samsung-Toshiba-Nakamichi-Motorola. There is a lot of speculation around the identity of Satoshi, but no one knows whether it’s one person or a group of people.
6. China is The Biggest Cryptocurrency Miner
Well, who would have thought that China controls around 75% of the mining network? As they are the country investors turn to when there is a crash in market value. Mining cryptocurrency is the process of verifying transactions before they’re placed on the Blockchain’s ledger. It’s an extremely lucrative part of the business, and as of now
In May 2021, China proposed consequences for telecommunications companies and others that use their equipment for mining. By August 2021, China had been so effective at cracking down, that the country’s share of the global hash rate had fallen to zero.
Researchers believe some covert mining is still occurring, masked by the use of virtual private networks (VPN). Yet China’s swift action and the resulting rapid halt in Chinese cryptocurrency mining operations underscores the vulnerability of the cryptocurrency market to policy decisions by large nations.
7. NFTs and Metaverse aren’t Cryptocurrencies
Many people are still of the opinion that NFTs and metaverse are cryptocurrencies. Even though they are growing in popularity and are considered digital assets, NFTs aren’t cryptocurrencies. They’re tokens that are not used as a medium of exchange. And NFTs can’t be divided or replicated.
Today, NFTs are seeing popularity as alternative investments similar to artwork or collectibles. In fact, that’s how some people see them — digital collectibles and artwork that could potentially grow in value. There are even NFTs, like those offered by NBA TopShot, that operate similarly to digital sports trading cards.
8. You Pay Taxes on Your Crypto Gains
If you’re investing in cryptocurrencies and seeing gains, you will have to pay capital gains taxes. Depending on how you manage your crypto and how you got it, you might have to pay taxes based on long-term or short-term investment gains or as income.
For example, when I received one bitcoin for an article in 2011, that would have been considered income. Today, though, if I sell the Ethereum I bought in 2016-2017, my profits would be long-term capital gains. I experimented with Dogecoin back in April, and that resulted in short-term capital gains. All of that is taxed.
9. Cryptos With Many Uses
There are some cryptocurrencies that have uses beyond just being a coin. The Ethereum blockchain for example can be used for more than just processing payments and sending currency.
While you can use ether, the native coin, for transactions, the underlying technology isn’t just about a medium of exchange. Ethereum is also used to execute smart contracts and can be used for the supply chain management. Other cryptocurrencies even create their coins on the Ethereum network.
10. The First Commercial Bitcoin Transaction Was for Pizza
On May 22, 2010, a man in Florida paid 10,000 bitcoin for two pizzas. This is generally recognized as the first commercial bitcoin transaction.
At the time, 10,000 bitcoin was worth about $40, making one bitcoin “worth” a little less than half a cent. Today, if you had that much in bitcoin, it would be worth more than $350 million.
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