5 Lesser Known Facts about Cryptocurrencies

Cryptocurrencies are digital tokens that have been in circulation since 2009. They represent a form of currency that is not governed by a central bank or government and can be used to purchase goods and services on the internet, often anonymously.

Cryptocurrency trading has become popular lately with more than 5000 cryptocurrencies available for trade. In this post, we will examine five major facts about cryptocurrencies that might come as a surprise to you. You can start your bitcoin trading today with trusted platforms like BitIQ

China Is a World Leader in Cryptocurrency Mining

China is the biggest cryptocurrency miner. As of December 2017, China had mined more than 50% of all bitcoins worldwide. In order to mine bitcoin and other cryptocurrencies, people use computers to solve complex math problems for which they are rewarded with new coins.

These complex math problems require a large amount of computing power and electricity, so it’s no surprise that China is home to some of the largest mining operations in the world.

Mining pools in China account for more than three-quarters of Bitcoin’s global share and five out of six top mining pools are located there as well. The country is also home to Bitmain Technologies Ltd., by far the dominant force in bitcoin mining today.

Bitcoins can be Taxed

The cryptocurrency bitcoin is used as a form of payment for goods and services. Often, people new to bitcoins are unaware that the currency is taxable in their country. In some countries, like China, bitcoins are not taxed at all because they do not consider it legal tender.

However, if you live in America or another country that taxes income on purchases made with other currencies than your national currency then there could be tax implications when using bitcoins to pay for things such as airline tickets or foreign food restaurants.

The IRS has declared that Bitcoin is property, not a currency. That means if you mined bitcoins for profit or received them as payment for goods and services, the amount of bitcoin income you need to report depends on whether it’s short-term or long-term.

Bitcoin Or Ethereum Are Not The Only Cryptocurrencies

There are over 5,000 different cryptocurrencies in the world. A majority of these currencies are built on top of the blockchain technology that was created by bitcoin.

The only way someone can make changes to the blockchain is if they have access to more than 50% of the entire network’s computing power, otherwise known as a 51% attack. 

One popular currency called Ethereum is not based on bitcoin but it does use its own version of blockchain technology called Ethereum Virtual Machine or EVM known as Smart Contracts.

The Whereabouts of Bitcoin’s Creator Are Unknown

The name Satoshi Nakamoto is a pseudonym for the bitcoin creator. This pseudonymous individual’s identity is still unknown, but many have speculated that he or she may be Japanese.

It was not until August of 2016 when it became clear that this person had access to an early-stage prototype from November 2008. A year before bitcoin was released in January 2009, the first-ever cryptocurrency white paper was published by an anonymous author on a P2P Foundation forum.

The title of the post read Bitcoin: A Peer-to-Peer Electronic Cash System which caught people’s attention and sparked their curiosity about what this new technology could do for society.

Blockchain Is Not Only Used For Cryptocurrencies

The blockchain is an ever-growing public ledger of transactions that are tamper-proof, transparent, and unchangeable. The benefits of the blockchain can be seen in many industries including finance, healthcare, and manufacturing to name a few and these industries have been able to reap the rewards from this new technology with ease.