15 Interesting Facts About Cryptocurrencies

15 Interesting Facts About Cryptocurrencies

The cryptocurrency market is new, and yet it is such a dynamic, complicated and intriguing ecosystem. Here is a list of 15 interesting facts about cryptocurrencies for everyone to know.

crypto facts

1. The smallest unit of Bitcoin is the Satoshi.

One satoshi equals one-hundred-millionth of a single bitcoin (0.00000001BTC). It is named after the creator of Bitcoin, Satoshi Nakamoto, which is a pseudonym for a person or group of people of unknown identities.

2. XRP is the most eco-friendly currency.

The proof-of-work consensus algorithm requires a significant amount of electricity usage. There are other types of consensus algorithms which do not need that much energy. One of them is the proof-of-stake algorithm. The most energy-efficient algorithm is the XRP consensus, which uses a Byzantine consensus algorithm. It focuses on a “voting” mechanism among trusted nodes (peers) on a network. Thus, no mining is needed on a network using this software. Thus, the RCL (Ripple Consensus Ledger) is the most “green” method of confirming transactions.

3. Not every cryptocurrency is designed as a payment system

Some cryptocurrencies like Bitcoin, Litecoin, Dash, and Monero are designed to work as digital cash systems for transactions and payments. On the other hand, cryptocurrencies like Ethereum (ETH), Ripple, and Cardano are created to use the underlying blockchain or distributed ledger technology for different purposes and applications. Ripple is built to be a network for global financial transactions and digital transfers. Ethereum is designed to run smart contracts and decentralized applications. Ethereum and Ripple (for example) are not precisely cryptocurrencies, to be more accurate, they must be understood as blockchain platforms or operating systems. Also, they do generate their corresponding native cryptocurrencies (coins), which are usually named differently than the platforms themselves (e.g., Ether for the Ethereum platform, XRP for the Ripple platform) and are used to support and facilitate the networks.

4. Satoshi Nakamoto was nominated for the 2016 Nobel Prize in Economics.

5. No single entity (central server, company or government) has control over cryptocurrencies. That’s why they are called decentralized. 

There is also no need for any central authority to authenticate or confirm the cryptocurrency transactions.

6. In 2013, the FBI made $48 M from 144,000 seized bitcoins which were sold on an auction.

The price of a single bitcoin back there was $334.

7. On may 22, 2010 – someone bought two pizzas with 10,000 Bitcoins.

The 10,000 BTC today is worth over $73M.

8. If you lose your wallet, you lose the value of your cryptocurrencies.

Hence, your money is gone. An example of this is the case of James  Howell. Cleaning up his home in 2013, he accidentally threw away his hard drive where he’d stored his bitcoins.

9. Bitcoin transactions are irreversible.

It can be refunded only by the person who had received the funds with another transaction.

10. Most people are still unaware of cryptocurrencies or have heard of it but don’t know what it is exactly.

In 2017, the LendEDU conducted a survey, and it found that 80% of American students were unaware of Bitcoin. There were other surveys with similar results.

11. There are currently 1910 cryptocurrency coins listed in CoinMarketCap.

The Total Market Cap as indicated there is $238,632,614,606.

(If you want to know more about the top 15 leading cryptocurrencies different than Bitcoin, check our previous post.)

12. The number of Bitcoins which can ever be mined is finite.

Eventually, the total number of available bitcoins will be 21 million. Right now, there are nearly 17 million Bitcoins in circulation. At the present time, the reward for each new block is 12.5 BTC, and every four years the reward will be halved. After 64 times of reductions, it comes to the last Bitcoin and that time is predicted to be in 2140. Once all bitcoins are into circulation, transaction fees would drive miners.

13. Zug in Switzerland is called crypto valley, due to the presence of a cluster of cryptocurrency related companies and foundations.

14. The world’s wealthiest man owning cryptocurrencies is Chris Larsen (co-founder of Ripple).

Chris Larsen’s net worth approximates $20 billion (in January 2018), as a result of owning 5.2 billion XRP, Ripple tokens. XRP has since crashed approximately 65%, but the Ripple billionaire is on top of the list. Next in the list is Joseph Lubin (co-founder of Ethereum and founder of Consensys. His net worth is from 1 to 5 billion USD.

15. 81% of the world’s mining pool is in China.

The next biggest one is in the Czech Republic (10 %). A mining pool is a group of cooperating miners who agree to share block rewards corresponding to their mining hash power and contribution.

If you are new to the cryptocurrency world and you found those facts interesting, you can check out our Cryptocurrency glossary articles to find cryptocurrency terms and definitions. There is Part 1, Part 2 and Part 3 of the Glossary.

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