5 cryptocurrency facts you should know
Cryptocurrencies have been the talk of the town for quite some time now. The technological advancements and the globalization of finance have made way for the rise of cryptocurrencies in recent years. The market has seen a significant transformation, attracting both new and experienced investors with the promise of substantial returns. The year 2021 has been a crucial year in the crypto world. With the industry gaining the attention of curious individuals worldwide, many are endeavoring to keep themselves updated with the latest developments.
Investing in digital assets such as Bitcoin has become an attractive option for many investors. They are curious about exploring new ways to purchase and sell cryptocurrencies easily in the comfort of their own homes. However, the world of cryptocurrencies is a challenging one – with complexities and unexpected twists and turns. It’s important for investors to be knowledgeable about processes such as buying, transferring, and storing cryptocurrencies.
To help investors understand this complex market, we have compiled a list of 10 crucial facts that everyone should know. While this list covers a lot of ground, it is important to remember that the cryptocurrency industry keeps changing. As an investor, it’s vital to stay informed, up-to-date, and to remain vigilant of any sudden developments in the market that may affect your investments.
1. The first commercial bitcoin transaction was for pizza
The history of cryptocurrency has had its fair share of legendary moments, but none quite as memorable as the tale of the man who shelled out not one, but 10,000 bitcoins for just two Papa John’s pizzas. Back then, Bitcoin was still a largely unknown digital currency, and its value was barely a few cents apiece.
However, this historic pizza transaction not only marked the first instance of Bitcoin being used as a payment for goods, but also highlighted the immense potential of digital finance. Fast forward to today, and the worth of those 10,000 bitcoins stands at an unbelievable $190 million.
That’s a staggering profit, and it serves as a testament to the incredible power and scope of cryptocurrencies. As such, investing in digital finance, even with small amounts, can reap huge rewards and make for a promising future.
2. There are more than 18,000 cryptocurrencies in existence
Did you know that the world of digital currencies is vast and continuously expanding? It is reported that as of October 2022, there are over 18,000 digital currencies circulating globally, offering investors plenty of choices to explore. While not all of these currencies are readily available on exchanges, some require their own wallets to be securely stored. Many of these currencies are alternative coins (altcoins), including popular ones like USDT, XRP (XRP), Solana (SOL), Binance USD (BUSD), and many others, as you can find out in the informative article linked in the original message.
Despite the vast array of digital currencies available, it is noteworthy that the top 20 virtual currencies, as of October 2022, account for an overwhelming 87% of the cryptocurrency market cap. It is important to keep this in mind when delving into the world of digital currencies, as it may help investors make more informed investment decisions.
3. The total amount of bitcoins is limited
It is important to understand that bitcoins are a decentralized digital currency with a limited supply. Unlike traditional fiat currencies, such as the US dollar or the euro, which can be printed endlessly, there is a finite amount of bitcoins that will ever exist.
This is because the creator of bitcoin, known as Satoshi Nakamoto, set a limit on the total number of bitcoins that could be created. This limit is set at 21 million bitcoins. Once all 21 million bitcoins have been produced, no more will ever be created.
This cap on the total supply of bitcoins is one of the key features that gives bitcoin its value and makes it an attractive investment for many people. So remember, the total amount of bitcoins is limited, making them a unique and valuable asset in the world of digital currency.
Bitcoin is not only a fascinating concept but it also is revolutionizing the financial world. The protocol for the bitcoin network was designed with a predetermined limit of 21 million coins, which will eventually be reached overtime.
Currently, with 19.15 million bitcoins already in circulation, we are on our way to reaching the limit in the near future. The reason that the remaining few million bitcoins are still being mined is because it is still profitable and highly sought after. As more and more people understand the value and importance of decentralization and autonomy, the demand for bitcoins will most likely rise.
It is also noteworthy to mention that the scarcity of bitcoins is what makes them so valuable in the first place. This is truly an unprecedented phenomenon, as never before has there been such a finite and rare asset that has captured the attention and imagination of so many.
4. Nigeria is Africa’s largest crypto market
The adoption of cryptocurrency in Nigeria has reached an all-time high, with a significant increase in the number of individuals making use of digital currencies. Nigeria currently has more than 50% monthly active adult crypto traders, a trend that has been on the rise due to the constant depreciation of the Naira.
In fact, a significant amount of Nigerian citizens now prefer to store their money in digital currencies rather than keeping it in fiat cash. In a bid to tap into the advantages of cryptocurrencies, some Nigerians have even gone as far as using crypto wallets to purchase airtime for their phones.
These measures have helped to significantly reduce the risks associated with holding fiat currencies. Despite the Nigerian government’s ban on cryptocurrencies in 2021, many Nigerians have continued to defy this policy and are still actively trading them. According to data from Merchant Machines, Nigeria is set to be a leader in global crypto adoption by 2030.
5. Ethereum fees are referred to as gas
When utilizing the power and convenience of the Ethereum blockchain to complete transactions, it is important to note that a fee in the form of gas is required. In essence, gas represents the computational effort that is utilized to facilitate various actions on the Ethereum network, such as buying and selling Ethereum in Nigeria through reputable platforms like Bitmama.
It’s vital to understand that every time you conduct transactions or use the network for various apps, or even convert other coins to ether, you will need to pay a corresponding gas fee. Depending on the kind of transactions and the overall traffic on the blockchain, gas fees may vary, and in certain seemingly high-demand periods of activity, they may feel quite high. Therefore, it’s strongly advisable to carefully consider the gas fee before initiating any Ethereum blockchain transaction.
