Introduction to Blockchain: 10 Weird Things You Probably Didn’t Know

Are you confused by Bitcoin?

You’re not the only one.

With cryptocurrency surging in popularity, it’s taking over our news feeds and TV screens. Keeping up with evolving technology and new lingo can be difficult, especially if you’re not tech-savvy.

In this post, we’ll make it easy. Read on for our introduction to blockchain and Bitcoin.

Learn the Basics with Our Introduction to Blockchain

If you find yourself asking ‘what is blockchain or Bitcoin?’, these facts are for you.

1. The First Bitcoin Purchase was for Pizza

The very first transaction in which Bitcoin was used was a purchase for two pizzas in 2010.

2. May 22nd is Bitcoin Pizza Day

That’s not our only pizza-related Bitcoin fact.

That purchase took place on May 22nd, 2010. Now, that day has been marked as ‘Bitcoin Pizza Day.’

At that time, two pizzas cost 10,000 bitcoins. At the time, this was worth around $40. Eight years later in 2018, their worth had skyrocketed to 150.7 million!

3. It’s Unclear Who Controls Bitcoin

A single entity or government do not control Bitcoin. Instead, regulations vary from country to country.

4. One Man Lost $67,000 in Bitcoin During a Computer Upgrade

A British man named James Howell accidentally threw away $67,000 worth of Bitcoin when he got rid of his old hard drive.

He threw away the hard drive in 2013. He had completely forgotten about the Bitcoin wallet he’d installed, which wasn’t worth much at the time. Last year, he realized his mistake and considered digging up a landfill site to retrieve it.

5. Bitcoin Data is Completely Transparent

With Bitcoin, data is not encrypted or hidden. All information is transparent and can be seen on blockchain.

6. Bitcoin is Like Stock

Bitcoin is similar to stock in that the price can increase or decrease suddenly and arbitrarily. That’s why enthusiasts need to constantly check prices to keep on top of it.

7. Bitcoin is Created Through ‘Mining’

Cryptocurrency is not created out of thin air.

Instead, it comes from a process called ‘mining.’ Mining refers to the process in which transactions are verified and added to the blockchain. After a transaction is verified, a complex mathematical puzzle is generated, which needs to be solved by a computer. The first computer to solve is it rewarded with Bitcoins.

8. The Bitcoin Network is Incredibly Powerful

The network of computers that carry out the mining process for Bitcoin is more powerful than 500 supercomputers combined. That’s some impressive power!

9. There are No Refunds

Unfortunately, refunds are not possible with Bitcoin. This means you have to be extremely careful with the transactions you make.

One person learned this the hard way.

They meant to send a Bitcoin fee of around $5, but accidentally sent an amount worth $137,000. The person who processed that transaction ended up pocketing that fee for themselves.

Due to the anonymity of Bitcoin wallets, the identity of that unfortunate sender remains unknown.

10. Thailand Once Banned Bitcoin

In 2013, the Thai central bank banned the use of all cryptocurrencies. However, it was later approved in 2018.

Use it to Your Advantage

There’s a good reason why more and more people are learning about Bitcoin. This post offers a straightforward introduction to blockchain to help you get started.

If you know how to use it, it can be a great way to invest. There’s an opportunity to make huge returns on your money.

It can even be a creative way to pay off your student loan.

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