BITCOIN FACTS YOU NEED TO KNOW | Crypto Corner #58


well hello everyone this is O J
here coming to you with another episode of the Crypto Corner Podcast this is episode number 58 guys it’s the beginning of the year and
today is a very special date so I decided to do this episode where I’m going to be talking about the facts that every
Bitcoin investor should know about today is the 3rd of January and it’s in fact
or the bitcoins birthday or blockchain’s birthday It’s been 10 years since the
first block on the Bitcoin blockchain has been mined so I’m gonna touch on
that as well let’s get started first Well the first fact
is that Bitcoin was actually the first digital currency that managed to solve
the double-spend problem of its predecessors. There were a few other
attempts at creating a digital currency before that and they all failed because
they couldn’t quite sort out the double spend problem and with Bitcoin it was
the first time that we managed to get this resolved and this is why it became so
important it became the first digital currency that people actually cared about and that was you know that was able to be used as actual digital money
now how it solves the problem is by having three separate confirmations on
each transaction – independently confirmed Every transaction has to be confirmed
and and because it is run by people who are actively involved with the network
but they are not being controlled by a central authority (these are people who
are running notes all over the world) this is why we are calling it a
Decentralized Network and these confirmations, once they are received, that transaction is considered to be complete and it’s recorded on the
blockchain and I’m gonna also explain what exactly is the blockchain as well but let’s go through the dates so
date 31st of October 2008 is really important because this is when we had
the white paper being released this is when Satoshi Nakamoto released the white
paper and you know basically laid down the basics of what bitcoin what this new
digital currency is going to be so this is when we actually many
people who are already commemorating ten years of the Bitcoin birth on the 31st
first of October just a couple of months ago but in fact today is the probably
more important date because the first block was mined today on the 3rd of
January 2009 – exactly ten years ago so we can call this the birthday of the
blockchain or as I call it the birthday of Bitcoin because this is when Bitcoin
actually started this is when the first block was mined. The white paper
release was the conception, this was the ideology but the actual birthday for me
is today this is why today I’m doing this video and I want to
commemorate this date. so 22nd of May 2010 this is the next important date this is pretty much a year and almost a year and a half since the first block
was mined that resulted in the first transaction actually happened in the
first real Bitcoin transaction occurred on the 22nd of May 2010 and as you know
it was actually a transaction for pizza there was some guy who went on a bitcoin forum and made a proposal to people that he wants to order a pizza and he wants to
pay with Bitcoin just because he wanted to say that he was able to pay for a
pizza with Bitcoin you know with Bitcoin there was always the argument that only
when people start buying coffee or you know everyday kind of little things only
then it would be considered real money and and this was the purpose of this
purchase and he managed to convince to convince someone to send him a two
pizzas in fact and he paid 10,000 Bitcoin for that
pizza so what’s interesting is that this transaction at the peak when Bitcoin
reached 20,000 dollars last year in December in 2017 in fact that Pizza was
costing a whopping 150 million dollars which is crazy well today it is only 30
million dollars because we as we know Bitcoin has been going through a
correction and the price right now as I’m speaking to you is around 3900 it’s
just under 3900 so let’s talk about mining how it’s actually Bitcoin being
produced because many people are not quite clear on how Bitcoin is actually
being produced well it’s not creating created out of thin air
despite what many people think Bitcoin is created through a process complicated
process called mining and the blockchain the technology that Bitcoin is built on
is depending on a network of nodes computers that ensures the integrity of
every transaction the history of transactions everything has to be
recorded everything is being recorded on that blockchain and and blocks are being
mined by computers solving very difficult mathematical algorithms and
once one of those algorithms is being solved a new block has been created has
been mined and every block comes with a reward which originally was 50 bitcoins
at the time when it first started at the moment it is that reward is 12 and a
half bitcoins a block is being mined every 10 minutes so every 10 minutes
someone is receiving 12 and a half bitcoins the average time this is you
know it’s an average time of course because it is not fixed sometimes it
takes slightly longer than 10 minutes most of the time it is pretty much
around 10 minutes. the total amount of coins that could ever be produced of Bitcoin is 21 million .
This this is how the code has been created everything is being coded in everything is algorithms and you cannot actually create more than 21 million coins, this is one of the reasons why bitcoin is so precious and it’s you know it’s
going up in price and in fact already we have 80% of all the Bitcoin amount out
of the Bitcoin volume has already been mined. Why? Because in the beginning the
production was really fast and with time it actually started slowing down I’m
going to explain about that as well so this is around 17 1/2 million coins in fact it’s seventeen million, four hundred and fifty nine thousand, five hundred and thirty one so right now what we have left
of the total supply of Bitcoin to mine is three and a half million in this three and these will take quite some time because there is a process
called halving and it occurs pretty much every four years
approximately every four years in fact it it is on a block height and when
Bitcoin was created in 2009 as I said in the beginning the initial reward was 50
bitcoins per block In November 2012 (so that was four years later) it halved to 25 bitcoins per block and the second halving was in July 2016 maybe some of you are already remembering that. I’ve been reporting since before that
halving was happening and in July 2016 we actually went down to the reward
decreased to 12 and a half bitcoins per block so every ten minutes right now we
are mining twelve and a half bitcoins in 2020 (very soon) we’re going to have
another halving and then we’re going to be mining 6.7 bitcoins
per block and that will again be every ten minutes
so the halving occurs every 210 thousand blocks so it’s not on
a particular date on a specific day, but it is in fact at a block height and
this is why every time it’s happening it’s not on the same month
or even on the same date and there is a website that you can see and and this is
where you can actually track the progress of how long is it
until the next halving so we have 73 thousand one hundred and sixty one
blocks left until the next halving and it’s estimated that it will be in 508 days 1 hour and 27 minutes so this was a curious fact
I’m going to actually include the link to that website below so that if you
wanna check it out and just after I finished with this video I’m going to
add all of the links so check out the description and make sure that you subscribe to this channel so you can get notified next time I’m doing a video right 90% of all of the bitcoins supply will be mined in the next 3 years so by the year 2022 we’re going to have already 90% of
the Bitcoin supply and the interesting thing is that because of that halving every four years because of the reduction of supply of Bitcoin, it’s going to take another 120 years for the last 10% of Bitcoin to be mined so
ideally it should be completed by the end of 2140 so we have plenty of
time until then and none of us will be alive at that point so you shouldn’t
really worry some people were sending me messages:
“what’s going to happen when the mining stops?” well, people will be making money from the transaction fees of course so do not worry about that let’s move on to the
next interesting fact 20% 20% (is believed) of all of the supply of Bitcoin has already been lost actually some sources even quote a
higher number 36 percent according to some researchers this is one of the late
ones has already been lost or locked in wallets that cannot be accessed and
that basically makes Bitcoin even more scarce than it already is
(so there will
be less than 21 million available at the end of it) and
in fact bitcoin is probably the easiest money to lose because the easiest form
of money I should say, because it’s purely digital, because you do not have any
third-party custodians (most of the time) you are your own bank;
you are completely in charge with your bitcoins; especially if you’re holding
them in your own private hardware wallet, paper wallet, USB keys, whatever it is….
as long as you’re not using a cloud service or an exchange, you are the owner of your
private keys, you are the owner of that Bitcoin and if you lose it pretty much
nobody will be able to help you if you don’t believe me you can ask this guy
James Howell who actually lost seven and a half thousand bitcoins that he mined
prior to 2010. in 2013 the guy was cleaning his home and he threw away an old hard disk containing the private keys of the bitcoins that he had mined
prior to 2010 so yeah you have to be very careful with your private keys and
with all of the data related to Bitcoin wallets and everything.
Make sure that you have at least 2 or 3 back-ups of everything because you know
sometimes people just forget their password and they can log in or they
forget their seed, their mnemonic phrase for a particular wallet and they
can’t unlock it so it’s really that the easiest form of money to be losing at
the moment… 5 years, what is 5 years? well 5 years is what it took for
Bitcoin to go from zero to hero!!! it became from zero from you know
the beginning it took only five years to reach $1,000 which was quite substantial
at the time I mean I know that currently we are at around four thousand so one
thousand seems like a really low price to you guys but
it was quite a remarkable journey for Bitcoin to get to the $1,000
unfortunately it only took 1 year to go from the highest peak from the
all-time high of $20,000 which was December 2017 to the $3200 which was
December 2018 last just a couple of weeks ago which
was the lowest point that it reached in the last year.
It lost 80% of its value during this great correction and this correction has not
yet finished – it’s still in progress… We are yet to find out if it’s going to be
complete and we’re going to be starting the next bull run already or whether
will be postponed so 5 is also the number of major corrections that Bitcoin has undergone. There has been quite a few of them and the first one was in fact a
really severe correction in June to November 2011 it lost 94% of its value
at the time it was trading at $32 which is a really small amount
compared to today (let me hide my camera so you can see these) but it went all
the way down to $2 which was quite a significant drop of $30 – 94%
it took a hundred and sixty four days for this correction and it was triggered by the
infamous hack of the biggest Bitcoin exchange at the time which was the
Chinese MT Gox The next correction was 82% 82.6% in fact and it was in April
2013, Bitcoin lost $214 from $260 all the way down to
$46 – it took 87 days for this correction to play out and
again it was related to MT Gox the same exchange it actually stopped
trading during that period the next correction was in it was a much longer
one it went from November the same year 2013
all the way until August 2015 where there was a significant $1000 drop from its all-time high at the time of $1155 dollars, all the way down to $155 it took 420 days for this correction and it
was triggered again by MT Gox announcing its closure after their hack
MT Gox never recovered and it closed for trading and it basically shut down
during that period they’re still selling some of the bitcoins that they had in
their possessions and they’re refunding the members even to this day they’re still
refunding members but they are refunding them in the Fiat value of the money that
they had deposited rather than the Bitcoin value, which is not great of
course Now the next correction happened in 2017 so just over a year ago and it was in September when it dropped by 40% which was a significant drop, it lost $2000 and it was from $5000 all the way
down to $2972 It took fifteen days
for the correction it was a very short one and it was triggered by the Chinese
temporary ban on ICOs and trading suspension as well.
And the last correction which is still still occurring it’s not completed yet
but we are hoping that it’s completed it is 83.3% and it started from
December 2017 continuing until today but on December 2018 it
reached the lowest point of $3100 so it basically lost $16500
That was the big drop from $19700 all the way down to $3100 and at first it was triggered by a South Korean ban on anonymous trading in crypto for all of the exchanges in South Korea
and at the time South Korea had the biggest trading volume of Bitcoin,
but also it continued after that as just a significant bear trend (bear market) that
is continuing to this day and it’s basically a correction
from an all-time high that was reached in a really-really short period of time,
really per parabolic move and it was expected that a correction will come so
we are hopefully coming out of that correction as I speak right now… so 10,000 what is 10,000? well it’s the average number of Bitcoin transactions per hour and funny enough it is almost half of the transactions of the etherium
blockchain Ethereum has slightly more than double that amount per hour also it is
20 times larger (10,000 transactions per hour) it is 20
times more than the number of transactions on the Ripple blockchain and
I’m mentioning Ripple because XRP is the third biggest cryptocurrency
in market cap as of today Ethereum is the second biggest cryptocurrency in terms
of market cap so compared to these two Bitcoin has half of the amount of Ethereum transactions and 20 times more than the amount of XRP transactions 45 terawatt is in fact the annual electricity consumption of
Bitcoin and if we compare that to a country’s it’s a small country it it’s
pretty much the same consumption that Peru is doing per year so it is quite
high there’s many people who are quite strong opponents to Bitcoin mainly
because of the energy consumption it is not precisely environmentally
friendly but you know given the benefits of Bitcoin and what it provides for us I
think it is justified 110 are the countries where Bitcoin is currently
allowed and legal and being used either for trading or for purchases; as
a commodity; or as an asset, in some countries it’s a currency even, in
most countries it’s an asset or commodity but the overall number of
countries is 110 out of a total of 251 countries in the world,
so pretty much half of the world and you can see
here on that graph that is all of the big regions Europe, Asia, America,
South America and covered there are some of the Southeast Asia countries and the Middle East where it’s still not quite allowed and some African countries as well 91%what is 91%?
….well this is the the male domination in the
Bitcoin community funny enough this is one of the latest statistics that I
have here it is really male-dominated industry in 91.22% in fact
of the users are male and only 8.78% are female.
well this is still a jump from last year this time around when the female users were around
5% even less there I think it was around 4…% in my yearly review for 2017 so it is growing but it’s growing quite slowly so
these were my facts for Bitcoin and I will be doing some more of these I know
that many people are asking me about Bitcoin still so there’s still a lot to
share, a lot to discuss, a lot to explain in a follow-up video I’m going to do
some fun facts for you as well but first I want you to start with the more
important ones and these are the selected facts by me. Let me know if you like that and leave me a comment below and give me the thumbs-up or the thumbs-down if you didn’t like it and also share this video with other people
people who you think will benefit from it, people who are interested in blockchain and Bitcoin in particular and I hope
that you subscribe to my channel I hope that you’re watching these videos
regularly, leave a comment below if you do, let me know, and also if you haven’t
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this is where I’m going to leave you guys, thanks for watching, thanks for
joining my livev stream as well and I’m going to see you
in my next episode!

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