The buzzword of the moment is crypto; there’s no doubt about it. Cryptocurrencies are indeed the future. Various types of cryptocurrencies, such as Ether, Bitcoin, Dogecoin, and Tether, exist, making it difficult to get started. However, you can see what cryptocurrencies are worth by looking at their market capitalization, which represents their total value.
Due to the rise in popularity of cryptocurrencies, people are learning how to buy cryptocurrencies and searching for easy ways to buy Bitcoin. Digital assets are attracting new investors, so it’s no surprise that some want to learn more about how they work. In crypto, however, sometimes the truth is chillingly strange.
Overall, cryptocurrencies have been a wild ride, and we still don’t know where they’re headed, but here are some equally fantastic facts about them. So, let’s look at them without dragging on, shall we?
Bitcoins have a limited supply
It’s true. Don’t think you can buy an infinite amount of crypto. Cryptocurrencies have a limited supply, just like gold and oil. As the supply of cryptocurrencies decreases, they increase in value. There will come a time when bitcoins and alt currencies will no longer be available. The Bitcoin protocol set a limit of 21 million when it was created. Due to this, bitcoin can no longer be mined at some point in the future. That is why people are so keen on buying them. If you also want to buy AAVE, ETH, etc., you should do it from a reputable platform to ensure you won’t be scammed.
It was for pizza that bitcoin was first used commercially
Two pizzas were purchased for 10,000 bitcoins by a Florida man on May 22, 2010. As the first commercial bitcoin transaction, this is generally regarded as a milestone.
The value of one bitcoin was about half a cent at the time when 10,000 bitcoins were worth about $40. The value of that amount in bitcoin today would be more than $350 million.
China dominates cryptocurrency mining
It’s hard to believe, isn’t it? Cryptocurrency mining involves verifying transactions before they are placed on the blockchain’s ledger. China controls around 75% of the mining network, one of the industry’s most lucrative parts.
A joke led to the creation of Dogecoin
In recent months, Dogecoin has become one of the most popular cryptocurrencies. To begin with, the token was just a joke. So many coins were just being introduced, so the idea was there would be a lot out there. A Shiba Inu dog that looks surprised was used as the inspiration for the Dogecoin token. When Dogecoin was introduced in 2013, this meme was popular. The price of Dogecoin remains volatile even though it’s worth a lot of money right now.
Cryptocurrency prices are heavily influenced by Elon Musk
The price swings in the cryptocurrency have been attributed to Elon Musk in recent months. The market pays attention to what he tweets or says about cryptocurrencies. Those who are devoted to him at least listen to him.
Just by announcing which coins Tesla will accept for car purchases and commenting on Saturday Night Live, Musk has affected the price of Bitcoin and Dogecoin, as well as the cryptocurrency market as a whole.
Cryptocurrencies number over 9,500
There were over 9,500 cryptocurrencies in existence as of March 2022. Although not all of them are available on exchanges, some of them require their own wallets.
Creating a cryptocurrency is relatively easy, which is why there are so many coins and tokens available. In March 2022, however, approximately 87% of the cryptocurrency market was accounted for by the top 20 coins.
The NFT is not a currency
While NFTs are becoming increasingly popular and considered digital assets, they are not cryptocurrencies. Unlike traditional currencies, tokens don’t serve as a means of exchange. It is also impossible to divide or replicate NFTs.
Similar to artwork or collectibles, NFTs are becoming increasingly popular as alternative investments. That’s how some people see them – as potential investments in digital collectibles and artworks. Even NFTs, like the ones offered by NBA TopShot, operate similarly to digital sports trading cards.
It’s worth noting that some cryptos have more uses than just being coins, such as Ethereum
Besides being a coin, some cryptocurrencies have other uses. Ethereum blockchain can be used for a lot more than just sending money. Ether, the native coin, can be used for transactions, but the underlying technology isn’t just about money. Smart contracts can also be executed with Ethereum, and they can also be used to manage supply chains. The Ethereum network even creates coins for other cryptocurrencies.
Gas is the name given to Ethereum fees
A transaction on the Ethereum blockchain requires you to pay “gas,” which represents the computational effort involved. If you want to use the network for apps or transactions, you have to pay gas regardless of whether you convert another coin into Ether. In some cases, gas fees can feel relatively high, depending on the volume of transactions and traffic on the blockchain.
Taxes apply to them
Obviously, it depends on where you live. Due to the mainstream entry of cryptocurrencies into the market, tax agencies all over the world are working to ensure they get their share. Cryptocurrency profits are often subject to taxation in many countries. Over 14,000 Coinbase users who had transactions exceeding $20,000 from 2013 to 2015 had to provide information to the IRS after the IRS won a court case against Coinbase. Make sure you check the laws in your country first.
The first blockchain game is CryptoKitties
As the first blockchain game, CryptoKitties lets you breed one-of-a-kind digital cats. Instead of being a currency, CryptoKitties are non-fungible tokens (NFTs).
Since each cat is unique, they have a unique value, much like artwork. The Ethereum blockchain is used to build CryptoKitties.
The Way Forward!
All in all, crypto will be a major part of the future of finance. Therefore, if you want to earn big, we recommend you consider investing in crypto, too; who knows, the currency you buy today will turn out to be the new bitcoin.