Countries worldwide have shown tendencies to ban Bitcoins and other cryptocurrencies, mostly because of the competition it poses to the power exercised by the central banks of these nations.
India is one of the few countries that tried to impose a permanent ban on cryptocurrencies like Bitcoin and reign in the virtual currency revolution that took place a few years ago.
The ban dragged on for two years, and Indians ceased to think of cryptocurrency as anything outside of news headlines.
But that’s changed now and India has reverted the ban opening the flood gates to investing in cryptocurrencies like Bitcoin but there are some facts which Indians still don’t know.
That’s why I made an honest attempt to bring light to those facts here:
8 Crazy Bitcoin Facts
Now that this ban has been lifted, and the once mysterious internet currency is now a fruit accessible to all who can afford it. Let us take a look at some of the facts about Bitcoins that most Indians are unaware of, and might even consider crazy!
#1. Bitcoins Are Legal
Let’s start with the basics. Bitcoins are legal in India.
Despite the complete and partial bans on cryptocurrencies placed by governments around the world, owing to the design of Bitcoins, imposing and carrying out a ban properly would be extremely difficult.
While some countries like Afghanistan, Pakistan, Vietnam, Saudi Arabia, and Bolivia have banned cryptocurrencies completely, and others like China, Ecuador, Egypt, Nepal, and American Samoa have placed partial bans, this does not stop the tech-savvy part of their population from accessing Bitcoins.
These bans even backfire by opening up new possibilities for the black market trade of Bitcoins.
While the up-and-coming cryptocurrency industry upped and left the country for greener and more welcoming pastures, prominent stakeholders challenged the ban in court.
And won: The SC now states that the RBI-issued ban circular is “unconstitutional.” So, yes, Bitcoins are completely legal in India.
#2. We Don’t Know Who Invented Bitcoin
Now that we’ve established that Bitcoins are legal and subject only to regulatory laws, the next question arises: who was the brain behind such fantastic technology?
We don’t even know if Satoshi Nakomoto, the inventor of Bitcoins, is one person or a group of programmers working together to piece together the Bitcoin network.
While the internet abounds with theories about who Satoshi Nakomoto is, all we can say for certain is that Mr Satoshi created a new era in financial history with the concept of his decentralized currency.
#3. Bitcoins Are Not Infinite
Bitcoins are NOT infinite. You cannot hope to keep mining Bitcoins limitlessly.
There are only 21 million Bitcoins in existence because that is how the programmer or programmers behind the Bitcoin network designed it.
Of these 21 million, an estimated 18.5 million Bitcoins have already been mined, of which the majority is in circulation. So, unless the regulations put in place by the Bitcoin network makes room for more Bitcoins to be created, only 21 million Bitcoins will ever exist.
#4. Bitcoins Can Be Traced
It is definitely possible to trace Bitcoin ownership. All Bitcoin transactions are permanently recorded in a public ledger that runs on blockchain technology and is immune to any alteration once a transaction has been recorded.
You will be allotted a Bitcoin address when you create an e-wallet, which is used to monitor the movement of your Bitcoins. And while your personal details won’t be tracked, every transaction you make, and all the Bitcoins you possess can be tracked. This has been used by authorities time and again to thwart fraudulent attempts.
Hiding your IP address only makes it harder to trace, not impossible.
#5. It is Possible to Lose Bitcoins
Bitcoins are intangible, that is, they do not have physical shape or form.
And since you can’t carry it around, the chances of you losing your Bitcoins on the streets are pretty low, right? Wrong.
Your Bitcoins will be stored safely in a virtual vault, and you will have keys to unlock the same. If you lose the key, you will lose access to your Bitcoin vault permanently, much like the unfortunate businessman who made headlines by misplacing his USB key and ended up losing millions of dollars simply because he could not access it.
So, while you may not lose your Bitcoins on the streets, you can lose your key, and in effect, your Bitcoin fortune, if you’re not careful.
#6. Bitcoin Growth is Not Hard to Predict
Cryptocurrency might seem like complex technology with unpredictable growth patterns if you are relatively new to the concept of virtual currency and haven’t done digging into the growth of Bitcoins.
Bitcoin growth is more predictable than that of most other financial assets due to several reasons, top among which are the set 21 million limit and the halving process that happens once every four years.
#7. You Can Buy Coffee with Bitcoins
There is a popular misconception that Bitcoins are mostly used for trading on the dark web, where it’s supposed untraceability gives you leverage for illegal activities.
This is not true. As mentioned before, Bitcoins are not untraceable.
As for the purchases you can make with Bitcoins, well, they are limitless. From a coffee at Starbucks and a footlong from Subway to a space trip, Bitcoins have you covered, with the number of merchants accepting Bitcoins growing day by day.
#8. Bitcoin Pizza Day is a Real Thing
May 22, 2010, is a historic day for cryptocurrency enthusiasts, celebrated the world over as Bitcoin Pizza Day.
Mr Laszlo Hanyecz made the first-ever record purchase with Bitcoins on this day, trading in 10,000 bitcoins for two Papa John’s pizzas. His purchase, which roughly amounted to 41 dollars at the time, is worth over 25 million dollars now, but Mr Laszlo seems to have no regrets whatsoever about his million-dollar pizzas.
This is not an exhaustive list. Bitcoins are here to stay, so grab a slice of Bitcoin pizza on May 22 and stay tuned for more crazy Bitcoin facts that will amaze you!
[su_note] KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing. [/su_note]
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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