Trading cryptocurrency has become popular for those looking to build long-term wealth in 2023, and what was once only dabbled in by the savviest and most clued up of investors has gone on to become accessible enough for the masses.
When Bitcoin made a number of early investors overnight millionaires back in its early days, it sparked a flurry of interest that has seen trading go decidedly mainstream, and with platforms and mobile apps like BitQT making it easier than ever to get started and make your first deposit, owning Bitcoin has become something of a rite of passage for millennials and increasingly, gen Z-ers, too.
There’s no denying that the cryptocurrency market is a volatile one, and this has proved particularly true over the past year, with Bitcoin’s value tumbling dramatically in response to economic pressures at points but ultimately, continuing to show it can bounce back. While other competing cryptocurrencies have also performed similarly, Bitcoin – the original and largest cryptocurrency in the world – remains the most highly sought-after.
But while we seemingly all want a slice of the Bitcoin pie in 2023 despite its challenges, there are likely some things you didn’t know about it – so here are some Bitcoin secrets to get your head around.
Approximately 20 per cent of Bitcoin has been lost forever
As the world’s first decentralised digital currency, Bitcoin paved the way for a new era in finance, and the innovative blockchain technology upon which it is based has transformed the modern world in ways we never previously thought possible. But according to crypto data from Chainalysis, it hasn’t all been smooth sailing for investors, with around 20 per cent of the currency thought to have either been lost or trapped in inaccessible wallets, amounting to a value of roughly £157 billion.
The coin’s creator, Satoshi Nakamoto, is thought to be holding about 1.1 million BTC that will never be released onto the market, and other holders have either lost crypto keys or passed away without leaving their keys (like bank account pin numbers) behind.
You can book flights and buy luxury fashion with Bitcoin
The luxury market has been one of the fastest to adapt to cryptocurrency and the opportunities that come with it in a bid to continue appealing to a high-net-worth customer base – many of whom are themselves crypto investors. Now, you can spend Bitcoin and other popular cryptocurrencies like Ethereum on a host of high-end products and services, from flights with Alternative airlines and Travala, to garments from esteemed fashion brands like Gucci and Philipp Plein.
In fact, the latter has gone one better still, opening the world’s first ever ‘crypto concept store’ on London’s Old Bond Street, where shoppers can peruse fashion NFTs virtually and purchase them using cryptocurrency, as well as snapping up real-life pieces using Bitcoin. Although there is currently only one crypto concept store, the brand eventually hopes to take the idea global, and it seems almost inevitable that many of our other favourite luxury brands will eventually follow suit. And it won’t just be limited to fashion, either, as we could soon be able to shop for everything from supercars to homes in such a way.
Bitcoin is El Salvador’s national currency
In 2021, the tiny Central American nation of El Salvador made history when it became the first country in the world to recognise Bitcoin as its national currency – although it did not entirely replace the US dollar, with the two continuing to circulate.
Despite reservations and protests from Salvadoran citizens, the government incentivised citizens to open a national digital wallet by offering them $30 for doing so – but it continues to be a controversial decision that many experts feel could be a dangerous mover for developing economies such as El Salvador’s.
Bitcoin mortgages are a real thing
The number of things that Bitcoin can be used for is growing by the day, and in 2019, entrepreneur Brock Pierce made headlines when he took out the world’s first Bitcoin mortgage in Amsterdam, the Netherlands.
Although still not the norm, the concept of crypto mortgages is continuing to gather momentum, and as the development of the Metaverse gathers pace, we could eventually see them going mainstream for holders of crypto fortunes and those looking to invest in virtual real estate. As for the real world, that remains to be seen, but with United Wholesale Mortgage – a US broker – having recently announced it would begin accepting Bitcoin and other large cryptocurrencies, it seems plausible that they, too, could eventually become a realistic option worldwide.
Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.
