10 facts about cryptocurrency you should know




Cryptocurrencies are constantly evolving, and people are taking notice. Investors, both new and experienced, are eager to learn more about crypto and how to buy and sell it. With so much information out there, it can be difficult to distinguish fact from fiction. This article aims to provide 10 important facts about cryptocurrencies.

  1. The first commercial bitcoin transaction was for pizza

    In 2010, a man in Florida used 10,000 bitcoins to purchase two Papa John's pizzas. This was the first time bitcoin was used to buy goods, and it was worth around $40 at the time. If you had held onto those bitcoins, they would be worth over $190 million today.

  2. There are over 18,000 cryptocurrencies in existence

    As of October 2022, there are over 18,000 digital currencies in circulation. Not all of these are available on all exchanges, and some require their own wallets. This includes many altcoins such as USDT, XRP (XRP), Solana (SOL), Binance USD (BUSD), and more. The vast number of cryptocurrencies can be attributed to the relative ease of creating and distributing new ones. However, the top 20 virtual currencies account for approximately 87% of the cryptocurrency market cap.

  3. The total amount of bitcoins is limited

    The bitcoin network protocol was designed with a limit of 21 million coins. This means that eventually, miners will not be able to generate any new bitcoins. Currently, there are 19.15 million bitcoins in circulation. This leaves a few million bitcoins to be mined, which is one of the reasons mining is still a popular activity.

  4. Nigeria is Africa's largest crypto market

    Crypto adoption in Nigeria is growing at an exponential rate. Due to the constant depreciation of the Naira, the country now has more than 50% monthly active adult crypto traders. Many Nigerians prefer to store their money in digital currencies rather than fiat cash, even going as far as to purchase airtime from crypto wallets. Despite the Nigerian government's ban on cryptocurrencies in 2021, many Nigerians continue to trade them. According to Merchant Machines data, Nigeria will be at the forefront of global crypto adoption by 2030.

  5. Ethereum fees are referred to as gas

    When using the Ethereum blockchain to complete transactions, you're required to pay for gas. On the Ethereum network, gas represents the computational effort used to buy and sell Ethereum. Using the network for apps or transactions, even if it's converting another coin to ether, means you need to pay for gas. Depending on the transaction and traffic on the blockchain, gas fees can be quite high in some cases.

  6. NFTs aren't currencies

    Even though they grew in popularity in 2021 and are considered digital assets, NFTs aren't cryptocurrencies. They're tokens that are not used as a medium of exchange. And NFTs can't be divided or replicated. NFTs can be used as alternative investments similar to artwork or collectibles. In fact, that's how some people see them — digital collectibles and artwork that may potentially grow in value.

  7. Dogecoin started as a joke

    One of the hottest cryptocurrencies in 2021 was Dogecoin (DOGE), as its market capitalization grew, in part due to support from Elon Musk. It recently replaced the Cardano ADA as the 6th largest crypto in the world. However, this cryptocurrency started out as a joke. The idea was that there were so many coins out there, just being introduced. So the creators of dogecoin invented the cryptocurrency around the image of the surprised-looking Shiba Inu dog. This was a popular meme in 2013 when dogecoin was introduced.

  8. The creator (or creators) of bitcoin remains anonymous

    Bitcoin is widely known to be created by Satoshi Nakamoto, a pseudonym that is not connected to a real person. The author who distributed the protocol paper via a cryptography mailing list remains unknown. There is much speculation about Satoshi Nakamoto's identity, but no one knows who he is. Nobody knows if they're a single person or a group of people.

  9. Elon Musk has a lot of pull when it comes to cryptocurrency prices

    Elon Musk has contributed to huge swings in cryptocurrency prices in 2021. The market pays attention when he tweets or speaks about cryptocurrencies. At least, his ardent supporters do. Musk has had an impact on the price of bitcoin, dogecoin, and the cryptocurrency market as a whole simply by announcing which coins Tesla will accept for car purchases.

  10. Some countries ban cryptocurrencies

    Not every country allows the use of cryptocurrencies. Some countries, like Turkey, don't allow cryptocurrency payments, while others, like Nigeria

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