8 Facts About Bitcoin

Here are some things you may not have known about bitcoin.

The digital currency market is still young.  And with the recent surge in popularity of bitcoin, it’s fair to assume that many people have just recently heard about the currency.  Whether your only knowledge of bitcoin is a few recent headlines or if you’ve been following the digital currency for years, here are some things you may not know about bitcoin.

1. Bitcoin’s 1,400% gain in 2017 wasn’t its best annual performance

The cryptocurrency’s 2017 performance made many headlines, simply because of its surge in popularity and the large dollar value of the digital currency. However, on a percentage basis, 2017 wasn’t bitcoin’s best year — not even close. In 2011, for example, it rose from $0.31 to $6.18, a gain of 1,894%.  In 2013, the rise from $13.44 to $751 represented a 5,488% gain. And in 2010, the digital currency rose from $0.0015 to $0.31, a staggering 20,566%.

2. Bitcoin’s true creator is unknown — and still owns a lot of bitcoins

Bitcoin was created by Satoshi Nakamoto. However, this is widely thought to be a pseudonym. Whoever the true creator of bitcoin is, he or she is estimated to own nearly 1 million bitcoins — enough to get them a spot on the Forbes list of the world’s richest people.

4. Bitcoin is not free to use

A big part of its initial appeal was that it could transfer money anywhere in the world, at minimal expense. And this used to be the case — the average transaction fee was less than $0.10 for much of its history.

However, with the recent surge in popularity, this has changed.  From mid-2017 until now, transaction fees have regularly eclipsed $5.00, and peaked at $34 in mid-December. Since that time, the cost has fallen to about $1, but it’s important for novices to realize that bitcoin isn’t exactly free to use.

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