10 Facts about Bitcoin that over 4 Billion People Don’t Know

Are you ready to uncover some amazing and lesser-known facts about Bitcoin? You’re in the right place!

Bitcoin, known as the king of cryptocurrencies, has many intriguing details that most people don’t know about.

In this post, we’ll share 10 surprising Bitcoin facts that will both amaze you and enhance your understanding of this groundbreaking technology.

These are hidden gems of information about Bitcoin, and even experienced enthusiasts might be surprised by what they learn.

10 Facts about Bitcoin

These are the less-known facts about Bitcoin and trust me some of them will surprise you.

1. The Identity of Bitcoin’s Creator is Still Unknown

Did you know that Bitcoin’s creator uses the pseudonym Satoshi Nakamoto? Despite many attempts by journalists, researchers, and cryptocurrency fans, Nakamoto’s true identity remains a major mystery. We still don’t know if Nakamoto is one person or a group of people.

In 2008, Nakamoto published a groundbreaking whitepaper called “Bitcoin: A Peer-to-Peer Electronic Cash System.” The following year, Nakamoto released the first Bitcoin software. For a few years, Nakamoto communicated with the Bitcoin community through emails and forum posts, all while staying anonymous.

By 2011, Nakamoto stepped away from the public eye, leaving a legacy that has greatly impacted the financial world.

Before disappearing, Nakamoto mined about 1,000,000 bitcoins. This massive amount of bitcoin, often called “Satoshi’s stash” or “Satoshi’s coins,” has remained untouched since Nakamoto’s departure.

Why is this mystery so important? Nakamoto’s choice to remain anonymous has helped keep Bitcoin decentralized. This means no single person or organization can control it. This decentralization is a core principle of Bitcoin and a major reason for its enduring popularity.

2. There Will Only Ever Be 21 Million Bitcoins in Existence

One of Bitcoin’s most distinctive features is its capped supply. Unlike traditional money, which central banks can print endlessly, Bitcoin is limited to just 21 million coins. This cap is built into Bitcoin’s protocol and is a key aspect of its design.

Why does this limit matter? It’s all about scarcity. Just as gold’s value comes from its rarity, Bitcoin’s value is influenced by its limited supply. This scarcity helps prevent inflation, a common issue with traditional currencies. When central banks print more money, existing money can lose value. Bitcoin avoids this problem because its total supply will never exceed 21 million coins.

Bitcoin’s supply is controlled through a process called “halving.” About every four years, the reward for mining new bitcoins is cut in half. Initially, miners received 50 bitcoins per block when Bitcoin started. This reward has been halved multiple times and is now 3.125 bitcoins per block after the latest halving in 2024. The next halving is expected in 2028, reducing the reward further to 1.5625 bitcoins per block.

This fixed supply makes Bitcoin similar to precious metals like gold, which also have a limited quantity. Because of this, Bitcoin is often called “digital gold.” The idea is that, like gold, Bitcoin can be a dependable store of value, especially during economic uncertainty.

3. About 20% of Bitcoin has been Lost Forever

About 20% of all Bitcoins—estimated between 3 to 4 million—are believed to be lost forever.

These Bitcoins are stuck in wallets because owners forgot their passwords, lost their private keys, or passed away without sharing access.

With Bitcoin’s total supply capped at 21 million, losing these coins makes Bitcoin even scarcer, potentially driving up its value.

A famous example is James Howells, a man from Britain. In 2013, he accidentally threw away a hard drive with 7,500 Bitcoins. Today, those Bitcoins would be worth hundreds of millions of dollars.

Despite many attempts to find the hard drive in a landfill, Howells has not been able to recover his lost fortune.

Why does this matter? Fewer Bitcoins mean more scarcity, which can increase the value of the remaining coins.

This situation highlights the importance of securely storing private keys and using reliable wallet services. For newcomers, it serves as a strong reminder to back up wallets and use strong security practices in the cryptocurrency world.

4. The last Bitcoin will be Mined in 2140

According to the Bitcoin protocol, the last Bitcoin is expected to be mined around the year 2140. 

This is a fundamental aspect of Bitcoin’s design and monetary policy. 

Here’s how it works:

1. Capped Supply: Bitcoin has a maximum supply cap of 21 million coins. This limit was hardcoded into the Bitcoin protocol by its creator, Satoshi Nakamoto. It is a key feature that distinguishes Bitcoin from traditional fiat currencies, which can be printed without limit.

2. Halving Events: To gradually approach the 21 million coin limit, Bitcoin experiences periodic halving events, which occur approximately every four years. During a halving, the reward that miners receive for adding new blocks to the blockchain is cut in half.

3. Halving Schedule: The initial reward for miners when Bitcoin was first launched in 2009 was 50 Bitcoins per block. The first halving event in 2012 reduced this reward to 25 Bitcoins. Subsequent halvings occurred in 2016 (12.5 Bitcoins per block) and 2020 (6.25 Bitcoins per block).

4. Predicted Timeline: Halving events will continue until approximately 2140, at which point the block reward will become so small that it effectively reaches zero. At this stage, miners will rely solely on transaction fees for their income, and no new Bitcoins will be created.

5. Scarcity and Value: The capped supply of 21 million Bitcoins is designed to create scarcity and is often cited as a reason for Bitcoin’s potential long-term value. As the supply of new Bitcoins diminishes, some believe that increased demand could drive up the price of existing Bitcoins.

5. First Bitcoin ATM was in Vancouver, Canada

The first Bitcoin ATM (Automated Teller Machine) was installed and operated in Vancouver, Canada. 

This historic event took place in October 2013 and marked a significant milestone in the adoption and accessibility of Bitcoin. 

Here are some details about the first Bitcoin ATM in Vancouver:

1. Operator: The first Bitcoin ATM in Vancouver was operated by a company called Robocoin, which was one of the early pioneers in the Bitcoin ATM industry.

2. Location: The Bitcoin ATM was located in Waves Coffee House, a popular café located in downtown Vancouver. This location was chosen to provide easy access to both local residents and tourists.

3. Functionality: The Bitcoin ATM allowed users to buy Bitcoin in Canadian dollars. Users could deposit Canadian currency into the machine and receive Bitcoin in their digital wallets.

4. Media Attention: The installation of the first Bitcoin ATM in Vancouver garnered significant media attention and brought Bitcoin into the mainstream spotlight. It was seen as a symbol of Bitcoin’s growing acceptance.

5. Subsequent Growth: Following the success of the first Bitcoin ATM in Vancouver, Bitcoin ATMs began to appear in various other cities around the world, making it easier for people to buy and sell Bitcoin in person.

[READ: How to Buy Bitcoin Using Bitcoin ATM]

6. The First Official Bitcoin Transaction Was 10,000 Bitcoins for 2 Pizzas

On May 22, 2010, a legendary moment in cryptocurrency history occurred. Laszlo Hanyecz, a programmer, made a historic purchase by trading 10,000 bitcoins for two pizzas. That’s right—10,000 bitcoins for just a couple of pizzas!

At that time, Bitcoin was a new and relatively worthless technology. Laszlo posted on a forum, offering to pay in Bitcoin for someone to order him two pizzas. A fellow Bitcoin enthusiast took up the offer, marking the first real-world Bitcoin transaction.

Today, those 10,000 bitcoins are worth hundreds of millions of dollars. This transaction has become a significant story in the cryptocurrency world, highlighting Bitcoin’s incredible journey from obscurity to widespread use.

Each year on May 22, the cryptocurrency community celebrates “Bitcoin Pizza Day,” honoring Bitcoin’s humble beginnings and its remarkable growth.

7. Bitcoin is a Legal Tender in Certain Countries

Bitcoin has reached a historic milestone by being recognized as legal tender in certain countries.

This marks a crucial step towards widespread acceptance and shows how cryptocurrency is becoming part of the global financial system.

El Salvador is the most notable example. In September 2021, it became the first nation to officially accept Bitcoin as legal tender.

This means that in El Salvador, Bitcoin is now accepted for goods and services, just like the US dollar, which is also an official currency there.

To support this, the government launched a digital wallet app called “Chivo.” They encouraged its use by giving citizens $30 worth of Bitcoin.

The Central African Republic also adopted Bitcoin as legal tender. In April 2022, it became the second country to do so.

Other countries are closely watching these developments.

8. The smallest unit of a Bitcoin is Known as Satoshi

The smallest unit of a Bitcoin is known as a “Satoshi.”

It was named in honor of Satoshi Nakamoto, the pseudonymous creator of Bitcoin.

One Bitcoin (BTC) can be divided into 100 million Satoshis (100,000,000 Satoshis).

This subdivision allows for more granular and precise transactions, especially as the price of Bitcoin has increased over the years.

For everyday transactions and microtransactions, the use of Satoshis is more practical than dealing with whole Bitcoins.

Here’s a breakdown:

1 Bitcoin (BTC) = 100,000,000 Satoshis (Sats)

So, if you were to send someone 0.001 BTC, you would be sending them 100,000 Satoshis (0.001 BTC * 100,000,000 Sats/BTC = 100,000 Sats).

Satoshi units are commonly used in discussions involving Bitcoin’s usability for everyday payments and in the context of Lightning Network, a second-layer scaling solution for Bitcoin, where micropayments are common.

9. Bitcoin is Pseudonymous, not Anonymous (It’s Traceable)

Bitcoin offers some privacy but is more pseudonymous than truly anonymous.

Let’s dive into what this means for users.

When you use Bitcoin, your transactions are recorded on the blockchain, a public ledger anyone can see. Instead of using your real name, these transactions are linked to a Bitcoin address, a string of alphanumeric characters.

This address acts like a pseudonym, hiding your real identity.

However, even though Bitcoin addresses are pseudonymous, blockchain analysis tools can trace transactions and possibly link them to real people.

If you want complete anonymity in transactions, check out our post about privacy coins in the crypto world.

10. The Lightning Network

The Lightning Network is a second-layer scaling solution for the Bitcoin network. 

It was created to address some of the challenges that Bitcoin faces, such as scalability and high transaction fees. 

Here are some key points about the Lightning Network:

1. Scalability Solution: The Lightning Network is designed to increase the scalability of the Bitcoin network by enabling faster and cheaper transactions. It aims to alleviate congestion on the main blockchain.

2. Off-Chain Transactions: Lightning Network transactions are conducted off-chain, meaning they don’t need to be recorded on the main Bitcoin blockchain. This reduces the load on the blockchain and speeds up transaction processing.

3. Payment Channels: Lightning Network transactions are conducted through payment channels, which are like private channels between users. These channels allow users to send and receive Bitcoin without involving the main blockchain for every transaction.

4. Lightning Network Nodes: To use the Lightning Network, users need to set up Lightning Network nodes or use a wallet that supports Lightning. These nodes facilitate the routing of payments through the network.

5. Instant Transactions: Transactions on the Lightning Network are nearly instant, making them suitable for small, everyday transactions like buying coffee or paying for online services.

6. Reduced Fees: Lightning Network transactions typically have lower fees compared to on-chain Bitcoin transactions. This makes microtransactions and small-value transactions more cost-effective.

The Lightning Network represents a significant step in improving the scalability and usability of Bitcoin as a means of payment. 

It allows for fast, low-cost transactions, making it a promising solution for the future of digital payments.

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DISCLAIMER:

The information provided here is intended for informational purposes only and should not be solely relied upon for making investment decisions. It does not constitute financial, tax, legal, or accounting advice. Additionally, I strongly recommend that you only invest in cryptocurrency an amount you are comfortable with potentially losing temporarily.

[READ: How To Choose a Crypto Exchange]