Facts about cryptocurrency that everyone should know

Cryptocurrency, a mysterious area that has attracted the attention of many, remains a subject of intrigue and research. UAportal has prepared five facts about it that are worth knowing.

Limited quantity

Like gold or oil, cryptocurrencies are a limited resource. Unlike traditional options, their supply decreases over time, which leads to an increase in their value. Investors realize that the number of bitcoins and other cryptocurrencies will eventually run out.

The mystery of origin

The origin of bitcoin remains a mystery. No one knows for sure who developed this virtual currency. The man behind Bitcoin is known as Satoshi Nakamoto, although his real name remains unknown. It is believed that the name of the creator is an abbreviation of the companies - Samsung-Toshiba-Nakamichi-Motorola.

A variety of currencies

The desire to participate in trading has led to the emergence of more than 5,000 different digital currencies. Of course, most of them have no actual value and will not have any in the future, although some of them do have real value. Among the huge variety, there are also creative ones, such as Coinye (named after Kanye West), PizzaCoin, and Cabbage.

China's dominance

Surprisingly, China is the leader in mining, controlling approximately 75% of the mining network. Mining involves verifying transactions before adding them to the blockchain ledger. This lucrative part of the business plays an important role in China's dominance in the cryptocurrency industry.

Cryptocurrency tax

Digital funds are also taxed, depending on the country of residence. Tax laws regarding cryptocurrency income differ from country to country. For example, in the United States, the tax service successfully obtained information from Coinbase about more than 14,000 users who had annual transactions of more than $20,000 between 2013 and 2015.

If you want to get the latest news about the war and events in Ukraine, subscribe to our Telegram channel!