There are many things that have already happened to Bitcoin in the last five years. Many exciting things are still happening this year. You need to know the latest Bitcoin mining facts of 2018 if you want to take advantage of what this crypto currency can offer. Here are some interesting facts that you should know.
No One Regulates Bitcoin
This is something that may scare people from investing in Bitcoin. There is no single authority, or individual that regulates Bitcoin. This is an open-source platform, and as such, just about anybody, anywhere in the world, who don’t have this currency, will be able to freely access it. There is one important fact that everyone should know. Up to now, the creator or the person who developed Bitcoin is still unknown. There are some people who claim they were the ones who developed this crypto currency, but a great majority of bit coin users and the public at large still don’t believe them.
40 Percent Of The Total Bitcoins Are Owned By 1000 Individuals
There is somewhat a centralization issue surrounding Bitcoin. The latest data revealed that there are only around 1000 individuals who own 40 percent of the total Bitcoins in circulation. This seemingly proves that there are many people who still don’t trust Bitcoin even if it has risen from almost nothing in value to where it is now. These 1000 individuals are holding 5,638,155 Bitcoins in their hands. In other words, almost a third of all Bitcoins being circulated at this moment are in the hands of a very few.
Bitcoin is a real golden nugget and it is definitely not a fraud. There will always be those who will have strong opinions about Bitcoin with regards to its relevance, legitimacy and potential. The discussions and debates going on are insightful, and can leave many people to ponder and think about its impact in their lives. While the opinions of financial experts and pundits are useful, it is also very important for people to know the real facts surrounding crypto currencies and not be persuaded by views and estimations of others even if they seem to be knowledgeable on the subject. Knowing the true facts will make the discussions and debate more profitable for all.
What Is Bitcoin Mining?
Basically, Bitcoin mining means that when there is an addition to the public ledger or block chain because a new transaction was made, a new Bitcoin is created or mined. This mining process is an important part of the way Bitcoin works. The network of this crypto currency depends on individual miners who verify and then update the public ledger of the transactions. For the whole system to be transparent there is a need to ensure that the users of bitcoin are not cheating the process and that new bitcoins are added to the pool of money.
One Bitcoin Equals $14,500
As of Jan. 10, 2018, the equivalent of one Bitcoin in U.S. dollars is approximately $14,500. The value of this crypto currency has significantly increased since it was first released nine years ago. Its amazing rise in value in the past year has been the fodder of news headlines all over the world. This has led many business and financial pundits to prognosticate that it will overtake fiat or traditional currencies as the preferred currency. They think that it is critical for businesses to understand the process of Bitcoin mining even if traditional currencies are able to retain their dominant position in the near future.
Is Bitcoin Mining Still Profitable In 2018?
The profitability of Bitcoin mining depends on many different factors. Therefore, the simple answer to this question is: it depends. Bitcoin mining is largely dependent on how much money you are willing to spend. Some enterprising individuals have invented calculators that can compute mining profitability. You can search for one of these calculators to see the profitability of a certain amount of money if used in Bitcoin mining. Even then, the final result will still depend on actual market conditions at the time of investment and the period involved. These calculators use different variables in their profitability computations which may include cost of hardware, electricity, and other factors.
Pizza Was the First Bitcoin Bought Item
The first item that was purchased by a bitcoin is a pizza pie. This is the reason why May 22 is celebrated today as Bitcoin Pizza Day. When Bitcoin mining was just starting, this crypto currency was virtually worthless. It will only cost you a few cents to buy a BTC at that time. And then came May 22, 2010. Someone used his bitcoins to buy two pieces of pizzas. It was a big deal at that time because no store has yet accepted bitcoins as a form of payment before.
But on this day, Laszlo Hanyecs bought two pizzas from Papa John’s and used 10,000 BTCs to pay for them. And surprisingly, Papa John’s accepted his bitcoins as payment for the two pizza pies. The actual value of the 10,000 BTCs is $41 during that time. Today, that same amount of bitcoins is equal to a massively huge $25.8 million.
Digital Currencies Are Volatile
Based on current experiences, digital or crypto currencies are very volatile. Their prices can vary from one day to another. The values of crypto currencies, including bitcoins can even have great variations every hour of the day. One of the reasons for their exceptional price volatility is because of the way they are being traded. There is no central location where bitcoins are sold and bought. There are many exchange centers where digital currencies are traded.
At the start of 2018, market capitalization of all digital currencies experienced a massive increase of around 3000 percent. However, Bitcoin has suffered four major value corrections affecting 20 percent of its price in the last six months. In more simple terms, crypto or digital currencies are not for timid investors. They are the tools of investors who have massive amounts of money to throw away.