Sunday, August 11, 2019

Bitcoin Facts

12 CRAZY Facts About Bitcoin
The astounding success of this cryptocurrency
might be a flash in the pan but it also might
be revolutionizing our global infrastructure.
Whatever the case may be there are some outrageous
stories behind it.
Here are 12 CRAZY Facts About Bitcoin!
“Winklevoss Twins”-You might recognize
Cameron and Tyler Winklevoss, known more popularly
as the Winklevoss Twins, from their role in
trying to wrangle Facebook away from Mark
Zuckerberg on their claim that it was their
invention, but you might not be aware of their
immense success in the world of bitcoin.
When they successfully sued Zuckerberg in
2011 for 65 million dollars they didn’t
just wipe their tears with the cash, they
invested $11 million of it into bitcoin.
When they converted their money into bitcoin
the going rate was solely $120 per bitcoin however
that investment paid off thousands of times
over for them as the the going rate is now
over $17,000 making their portfolio worth
over $1 billion dollars, making them the first
bitcoin billionaires.
Though they still are light years away from
Zuckerberg’s net worth of over $70 billion
dollars, if bitcoin keeps going up they might
catch him one day.
In order for this to happen the price of a
bitcoin would need to reach $774,000.
“Mt. Gox”- Mt. Gox was once a beacon of
achievement in the bitcoin world.
It was at one purpose the foremost productive web site
for the exchange of bitcoin, but due to some
extremely poor leadership and some brazen
hackers they quickly became the mascot for
the fickle nature of dealing in the cryptocurrency
Mt. Gox was a Japan-based bitcoin exchange
website that at its peak in 2013 was price
over half a billion dollars.
Because its CEO Mark Karpeles didn’t take
the necessary precautionary measures and update
his security software, in 2014 the company
fell victim to hackers who stole over 460
million dollars worth of bitcoins.
This combined with several lawsuits from competing
companies, angry customers and asset seizures
by the U.S. government forced the once (although
briefly) mighty company to declare bankruptcy
and take itself offline.
As of 2017, there are still many unsatisfied
customers who have been pining for years to
reach some sort of settlement from Mt. Gox
and Karpales and have yet to be compensated.
“Professional Investment”- Bitcoin reached
new heights in its bid to be taken seriously
as a sustainable currency when two Chicago
based exchanges, CME and CBOE decided that
they will begin trading in bitcoin futures.
This means that investors will now be able
to get their own piece of this increasingly
lucrative market and may even skyrocket the
price of bitcoin into the stratosphere.
These exchanges will actually be basing the
prices of bitcoin shares off of their current
auction price as listed by the Gemini Trust.
Which is actually another incredibly successful
venture started by the Winklevoss twins.
With the ability for bitcoin futures to be
traded in such a competitive world arena it
adds a small amount of stability to a volatile
entity and one could see how it could one
day overtake centralized currency.
“James Howells”- Welshman James Howells
mined some 7,500 bitcoins in 2009 when they
were worth little over $1 each.
He subsequently fell out of the hobby and
after accidentally spilling liquid on the
computer he dismantled it and stowed the hard
drive which contained his bitcoin wallet in
a desk.
He eventually forgot about his cache of bitcoins
and while cleaning out his office in 2013,
Howells decided to throw the hard drive away.
A couple months later he heard that the price
of bitcoins had risen to $1,000 and remembered
the tokens he had obtained in 2009 and his
heart dropped.
He quickly rushed to the landfill where his
neighborhood trash was put and begin frantically
Unfortunately he has yet to find the missing
hard drive though he still continues to search.
The coins in his wallet are currently worth
over 7 and a half million dollars.
“FBI’s Wallet”- You might be wondering
who some of the richest people in the world
are in terms of bitcoins.
Well for one of them we need to look no further
than the United States’ own Federal Bureau
of Investigation.
The FBI is currently in possession of the
largest bitcoin wallet which they obtained
when the seized the assets of the black market
site Silk Road which used bitcoins in an attempt
to keep their illicit dealings anonymous.
When they raided the site they took control
of the operator, Ross Ulbricht’s wallet,
which contained over 144,000 bitcoins.
These bitcoins are worth an estimated two
and half billion dollars as of today, making
the FBI owners of the second biggest bitcoin
wallet, just ahead of the Winklevoss Twins.

“The Creator”- So if the FBI is number
two and the Winklevosses are number three

in terms of bitcoin wealth who is number one?

Well that title is believed to be held by
none other than the cryptocurrency’s shadowy

creator, Satoshi Nakamoto.

Before leaving bitcoin to its own devices
it is believed that Nakamoto mined over one

million bitcoins which he stored in several
different wallets.

If you conceded these wallets contents as
being worth at least a million dollars it

would put Nakamoto's worth at over 17 billion

So who is this digital billionaire?

Well frankly no one really knows.

There are several different conspiracies as
to his or her identity and there are some

who say that Nakamoto is in fact a group of

Whatever the case may be we wonder whether
or not Nakamoto will eventually come forward

and take credit for the bitcoin boom and give
us his predictions on its future.

Or at least tell us what he spends his riches


“Powerful Network”- There are currently
thousands of bitcoin mines around the globe

working 24/7 to compute their owners ways
to financially glory.

The ridiculous amount of computers involved
in some of these operations are staggering,

with companies paying outrageous electricity
bills to keep their systems churning through


It was recently estimated that if you added
the power of all these mines together that

the network they create would be over 250
times faster than that of the combined computing

strength of the top 500 supercomputers in
the world.

Of course these supercomputers are usually
built to solve or process hundreds of extremely

complex equations at once whereas the systems
built by bitcoin miners are only meant for

the comparatively simple mathematics needed
to dig bitcoins out of the virtual ether.


“Bits of Pizza”- In 2010, when bitcoin
was still in its relative infancy Lazlo Hanyecz

had a hunger for pizza that changed the cryptocurrency

On May 22 of that year he posted to the BitcoinTalk
forum asking if anyone would take 10,000 bitcoins,

worth about $40 at the time for two pizzas.

A fellow bitcoin enthusiast agreed and accepted
the bitcoins then order Lazlo two large pizzas

from Papa John’s, completing what is considered
the first exchange of bitcoins for real-world

goods setting the mold for how these types
of transactions would work in the future.

This day has become known as Bitcoin Pizza
Day and bitcoin users all over the world celebrate

it by chowing down on pizza and noting how
much that pizza would’ve been worth today.

As of 2017 the 10,000 bitcoins Lazlo spent
on pizza would be worth a staggering $20,509,958.

So cheers to Lazlo, we hope you didn’t splurge
all of your future fortune on a few slices

of Papa John’s!


“China’s Chunk”- Over the past two decades
it seems like China has always been ahead

of the tech and financial game so it might
not surprise you that they are the leading

country in the bitcoin mining industry.

In fact it is estimated that China controls
over 70% of bitcoin’s network mining.

There are few different bitcoin mining megacopmanies
in China but one of the most prominent of

them is Bitmain.

Bitmain’s headquarters is in China’s capital
city of Beijing and not only owns several

bitcoin mining facilities but manufactures
and sells the complex rigs needed for serious

mining operations.

It is believed that well over half of the
mining rigs being used in the world today

were made by Bitmain.

This cutting out the middle-man type of business
model has set up Bitmain as a force to be

reckoned with down the road if bitcoin continues
to surge in value.


“Sure, We’ll Take ‘Em”- Bitcoins though
becoming more and more popular as an acceptable

form of currency for businesses everywhere,
are still viewed as financially volatile so

your curiosity might lead you to question
what types of companies currently accept them

as payment.

When they first started becoming popular cryptocurrencies
were viewed as being primarily for underhanded

or illegal dealings in which one wants to
remain anonymous.

But as their value increased and their staying
power was proven some companies brushed off

the stigma associated with bitcoin and jumped
at the chance to open themselves up to a new


At first it was mainly companies like online
dating or shopping sites that forayed into

bitcoin but more and more companies are getting
hip to the scene.

Large companies such as Lionsgate Films, Tesla
and even some Re/Max Real Estate Franchises

have started accepting

There are even some nonprofits who have started
accepting them in order to increase donations

like Wikipedia and Save the Children.

Whats even more fascinating is that the space
tourism branch of Virgin called Virgin Galactic

accepts bitcoins as a method to pay for future
tickets on one of their space cruises.

A ticket on one of these flights currently
costs an estimated 98 Bitcoins, equal to $250,000,

and yes, the Winklevosses already have theirs.

But the insanity doesn’t stop there!

Reportedly, the owner of two Montessori pre-schools
in New York City has stopped accepting credit

cards as a form of payment but will accept

In 2013, in the country of Cyprus, which had
fallen on hard economic times, the University

of Nicosia became the first university in
the world to accept bitcoins for tuition.

The University is also trying to head the
future off at the pass in other way, such

as offering extensive courses in blockchains
and other aspects of cryptocurrency.


“Unacceptable”- However many companies
and countries there are that become hip to

bitcoin there are still many who are afraid
of its impact on their own centralized banking

systems and the international economy.

These fears have caused some countries to
make the currency illegal.

Bitcoin is currently illegal in Thailand,
Bangladesh, Iceland, Ecuador, Vietnam, Bolivia

and Kyrgyzstan.

Nepal became the most recent country to ban
bitcoins in 2017.

Though bitcoin may technically be legal in
all other countries, most governments are

still extremely wary of the currency and may
have strict laws in place regarding the usage

of bitcoin.

You can also bet that anyone making large
exchanges of bitcoins is sure to come under

the scrutiny of the various law enforcement
agencies and the taxmen of their respective


On a positive note for bitcoin users some
countries have openly embraced bitcoin and

we don’t only mean China.

In fact there are currently 55 countries that
have some form of bitcoin ATM.

These are known as BTM’s by bitcoin users
and are used to conveniently transfer, make

purchases and send payments when on the go.

There are also over 7 different types of bitcoin
debit cards available, some which can be used

at these BTMs.

Amazingly there are over 1,000 BTMs in world
right now ,the vast majority of them located

in the United States.


“Who Needs Cash?”- As casual observer
who doesn’t fully understand the complexity

of this new age of digital currency it may
be hard to see how their could be any way

to really use bitcoins in daily life but one
couple from Provo, Utah survived using only

bitcoins for three months.

Austin Craig and Beccy Bingham decided to
make a documentary about having to live with

only paying for things via bitcoin for 90
days and though they had to bend their own

rules a bit to succeed, they did.

Admittedly it was extremely difficult for
them as most places, including necessary companies

that control things like electricity and water,
still do not accept bitcoin so they had to

be clever by convincing those that might not
normally accept them to accept them or by

getting someone to pay for these things for
them and reimburse them with bitcoin.

Though the last part sounds like cheating,
the main goal of their documentary was to

raise awareness to the cryptocurrency and
better define its real-world applications.

Do you think bitcoin and other cryptocurrencies
are destined for failure?