TMCnet Feature
January 26, 2021

Interesting Things About Bitcoins & Blockchain

Blockchain isn’t bitcoin. Blockchain was the first widely known cryptocurrency that was designed on blockchain technology. And the blockchain is kind of distributed ledger technology. So, if anybody says blockchain is bitcoin and bitcoin is blockchain, make them correct. Apart from this, there are still many misconceptions about bitcoins and blockchain. In this blog, we will address some misconceptions so that you can hopefully move forward and can make good investment decisions. If you want to invest in bitcoin, then we advise you to use a carry trade strategy. It is one of the easiest trading strategies for currency trading that exists. A trader uses this strategy when he wants to buy high-interest currency against a low-interest. It helps him to capture the difference between the rates.

Here we have outlined the interesting things about bitcoins and blockchain.

1.Bitcoin is not a digital coin or a file that you send from one computer to another

The bitcoin symbol is only a symbol, and pretty confusing. Bitcoin is simply an entry in a distributed ledger. No file, no coin. The coined term, which is used in Bitcoin, is a metaphor.

2.Your crypto wallet doesn’t hold any bitcoin

Just like a public-private key-pair that identifies a wallet holder and grants access to your funds that are saved on the blockchain, a record of transactions that lives on multiple-copies on a P2P network of the computer.

3.Decentralized database

Blockchain is called because here data is stored in linear containers. These blocks form a chain known as the blockchain. This technology is most simply defined as a decentralized system that records a prevalence of digital assets. It’s a promising technology because it helps reduce risk, fraud and brings transparency at a high level.

4.Bitcoin was never hacked

As blockchain is constantly reviewed by the users, it has never been hacked. Bitcoin users are assigned private keys, which enables them to access their bitcoins. If somebody hacked your private key then only you would become a financial theft victim. So, never share your private key with anyone.

So, if you lose your bitcoin private key, you will lose your bitcoins. In November 2013, there was an IT guy who lost his 7,500 bitcoins. Until this point, it is estimated 25% of all bitcoins have been forever lost.

5.The government cannot shut down the bitcoin

Since bitcoin is a distributed network of computers, so it requires a worldwide internet outage to shutdown. In case, if this happens for an hour or a few weeks, the network automatically syncs again and will be functional. To operate worldwide, bitcoins only need a few nodes online. Although the government can limit access to use bitcoin by making strict KYC policies.

6.Countries that have banned cryptocurrency

Few countries don’t allow their citizens to invest in bitcoins. Here’s the list.

  • Algeria.
  • Nepal.
  • Bangladesh.
  • Cambodia.
  • Ecuador.
  • Bolivia.

7.You can buy a lot of stuff with bitcoins

Many people ask where we spend our bitcoins. Here are the few things you can buy with bitcoins-

  • Coffee at premium restaurants.
  • Grocery items in the US.
  • Order food.
  • E-commerce shopping.
  • Book flight tickets.
  • Book car.

8.Cryptocurrency is extremely volatile

Just like other market investment, investing in bitcoins is also associated with risk. The rates of the cryptocurrency swing dramatically. But, if you use an excellent cryptocurrency strategy like carry trade, you can make money. It is a strategy that involves borrowing from a low rate interest currency and to fund purchasing a currency that provides a rate.

Some other interesting information about bitcoin and blockchain

  • Bitcoin is a pioneered money exchange system with 8 million active accounts. In a very small time, it has grown by 100% per year.
  • Only 0.5% of the world’s population is using blockchain technology today.
  • IBM and Microsoft (News - Alert) are the significant-tech giants that have invested in blockchain technology. IBM dedicates $200 million and 1000 employees to blockchain-powered investment.
  • The global blockchain market is expected to be worth $20 billion by 2024.

Final Say:

We hope this comprehensive guide on blockchain and bitcoins has given you significant knowledge about the cryptocurrency world. If you are thinking forward to invest in crypto exchange then read everything about it, mainly its strategies like carry trade.

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