Five little-known interesting facts about Bitcoin
Comparing to the first couple of years since Bitcoin appeared, now it is more options to purchase BTC. The only disadvantage of the current situation is that Bitcoin gain in price as its popularity and availability increased. Moreover, the price went up significantly, so you need more money to buy the same amount of BTC as before. At the same time, relative unavailability of the crypto currency is not the only surprise to those, who begins to become more familiar with the crypto industry. Let us discuss five less known facts about Bitcoin.
Is it possible to buy physical Bitcoins?
One of the most common questions from crypto newbies is whether it is possible to buy real physical coins. Of course, not. Bitcoin is a digital currency and exists only in the form of data in a distributed registry known as blockchain. Nevertheless, in 2011 Mike Caldwell started issuing physical Bitcoins aimed on uniting the worlds of crypto currency and collectors’ coins. In theory these coins might be of value for numismatists.
The first crypto exchange was not about crypto currency
Many people know about the notorious Mt. Gox Bitcoin exchange that stopped existing together with 850K of clients’ Bitcoins. Much less people are aware that previously the exchange worked in the different area and was named Magic: The Gathering Online eXchange, from where its abbreviation appeared. It was used to trade game cards.
Huge amounts of Bitcoin are sold outside of crypto exchanges
We got used to monitor the Bitcoin traded value on specialized platforms like CoinMarketCap. Even though there is whoop-de-do around accuracy of this data, there is always one more source of tradings that is almost impossible to measure.
OTC or over-the-counter trade is a term used to describe purchasing Bitcoins directly between two parties without the supervision of an exchange. In other words, two persons perform a direct exchange of crypto currencies to fiat money and vice versa. In practice, this method does not entirely exclude middlemen – an exchange or a broker, that bring together buyers and sellers, participate in the transaction. As a rule, people use OTC when they need a significant number of Bitcoins without impact on its market value, or when they hide financial activity.
Recently someone tried to buy out 25 percent of all existing Bitcoins
Regarding the OTC trading. Recently the crypto investment company Dadiani Syndicate captured headlines when stated about a rich client who wanted to buy out one quarter of all available Bitcoins. At the time there were over 17 million circulating Bitcoins, while 4 250 00 BTC (25%) would cost USD 34 billion.
Even if the order was placed at a slightly understated price, the market could offer tens of billions dollars. It was impossible to execute the order as no one can sell 4.25 million BTC in one package. It is rumored that even the creator of Bitcoin Satoshi Nakamoto owns only 1 million BTC.
It is possible to buy fiat money for Bitcoins
In sober fact buying fiat money for Bitcoins is more a sale of the crypto currency. The basic currency still remains fiat currency, and many people perceive Bitcoin as an investment tool that helps capital grow. However, when Bitcoin becomes a currency standard, it will be legal to name sales of Bitcoins as purchase of fiat money. It is only the matter of time.
Fiat currencies are cheap when measuring them in Bitcoins. Recently enthusiasts launched a new monitoring resource where people can see how much fiat currencies cost in terms of crypto currencies. Surprisingly enough, many fiat currencies can be bought for less than 1o satoshi.