16 Surprising Facts About Cryptocurrency
There has been a worldwide growing trend on cryptocurrency these days, and several people have started to invest their time and money in it. Nowadays, more and more people are found to look up facts like how to buy cryptocurrency or the best ways to invest in crypto.
Much like there are various aspects to the world of escape rooms, similarly, for people investing in crypto, there are various factors that need to be taken into cognizance. It is always advisable that people investing in it have some prior knowledge about the way it works.
In this article, we will showcase before you 16 surprising facts about cryptocurrency that you probably weren’t aware of. So, let’s check them out!
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The immensely volatile nature of cryptocurrency
One of the foremost facts that you need to know is that crypto is a highly volatile investment. It is largely because crypto investments happen at varied exchange rates in the world rather than a universal exchange rate. Throughout the year, cryptocurrency is seen to experience one of the most rapid rises and falls in the market, in contrast to any other known form of investment.
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There are as many as 9,500+ kinds of cryptocurrencies
With the growing popularity of crypto worldwide, there has also been a consequent growth in the number of cryptocurrencies that one may find today. A study conducted in March of 2022 revealed that there are as many as 9,500+ kinds of crypto today! However, some of them might even require their wallets for you to invest in them.
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The surprising first transaction of crypto
It is said that the first-ever transaction was made on the 22nd of May, 2010, in Florida for buying two pizzas. What is even more shocking is that the man who made this transaction paid approximately 10,000 Bitcoins for just two pizzas! It is because, at that time, 10,000 Bitcoins were worth only $40. However, today it amounts to approximately $350 million!
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Cryptocurrencies do not have any kind of fundamental backing
Yet another surprising thing about cryptocurrencies is that they aren’t backed up by any central bank or authority. Unlike the usual forms of currency that one tends to use, crypto does not fall under the jurisdiction of being regulated by any centralized authority. There are no fundamental factors with which you can try to squeeze out any appropriate valuation from it.
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The real value lies in the blockchain
Even though people investing in crypto remain so incredibly hyped up about the currency in itself, it is the underlying factor of blockchains that hold the maximum value. To make it simple for you, think of Blockchain as a ledger that maintains a proper record of all the transactions that anyone has made on crypto.
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The advantage of being decentralized
Since cryptocurrency works on blockchain technology and is thus decentralized, there is no central authority that holds your information or data. This significantly reduces the risk of your sensitive data being hacked and stolen by hackers and cybercriminals. Therefore, security remains at its best!
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The critical role played by miners
The verification of all transactions made on crypto is a crucial factor, alongside the consequent enlargement of the blockchains. This task is taken up by certain people called ‘cryptocurrency miners.’ In this process, miners use high-powered computers to solve complex mathematical equations. The process is accomplished on a competitive basis to verify and maintain a log of the transactions.
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Some currencies have diverse usage
A few of the cryptocurrencies, like Ethereum, have several other uses other than just as a coin. Many even use the ether coins to execute smart contracts and even for supply chain management apart from its regular use as a mode of payment.
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Problems related to transactions are solved easily
In contrast to the traditional banking systems, which operate within specific predefined working hours, crypto miners are always out there to work. Miners work 24*7 to regulate and verify transactions in the crypto network. Thus, if anyone faces any problem due to transactions, it can be resolved much quicker.
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Greater use control opportunity
The presence of blockchain technology allows greater opportunity for user control and transparency in the crypto network. There is no third-party involved here to regulate the future of cryptocurrency development. Instead, it is the members of a given cryptocurrency community who decide and control the future of crypto.
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Fees in Ethereum are called ‘gas.‘
For anyone using Ethereum for their crypto transactions, a certain fee for computational effort needs to be paid, which is called ‘gas.’ Whether you use Ethereum for transactions or to convert one coin to another, you need to pay ‘gas.’
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CryptoKitties is the first-ever blockchain game
CryptoKitties is an interesting blockchain game. In it, players can have fun as they breed exceptionally unique kinds of digital cats. Every kitten is one-of-a-kind and cannot be regenerated. CryptoKitties are not a currency but are a part of the non-fungible token (NFT) world.
- Blockchain technology has its pitfalls
Blockchain is a relatively new kind of technology and is still under development. Hence, it sometimes succumbs to a few pitfalls like a decrease in transaction speed, slow verifications, and others.
- NFT is not a currency
Even though many people consider NFTs as digital assets, they, however, do not fall under any kind of cryptocurrencies. They are tokens that cannot be used as coins and cannot be divided or replicated. NFTs can instead be seen as an alternative mode of investment, similar to artworks or collectibles.
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The origin of Dogecoin was a joke
One of the most popular cryptocurrencies today, named Dogecoin, initially started as a joke. The creators had invented it around the image of the astonished-looking Shiba Inu dog, which was a popular meme around 2013. Today, the rate of this cryptocurrency, however, is pretty high!
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The creator of Bitcoin is still unknown
Even though Satoshi Nakamoto is universally accorded as being the creator of Bitcoin, the article which talked about it following its release keeps it anonymous. There is also a lot of speculation surrounding the identity of Satoshi Nakamoto.
Now, these are some of the 16 surprising facts about cryptocurrency which you probably didn’t know. So, make sure you know all about crypto before you start investing in it today!
Author Bio: Charlotte Lin is a content creator at escaperoom.com. She’s a passionate young woman, mother to an amazing nine-year-old, and an avid reader. Over the years, writing has helped her explore and understand the world as well as her own self. She loves to travel, meet new people, and spend quality time with her daughter. You can find her on LinkedIn.
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