The cryptocurrency market has shot up astronomically in 2017 alone driven by the unbelievable rise in prices of most cryptocurrencies. The market is still in its nascent stage with many people trying to come to get their head around how it works, the best way to trade, how to maximize gains and other important factors.
Here are 6 little-known facts about the cryptocurrency market:
There are over 1, 500 cryptocurrencies
Most people know of Bitcoin and a few others like Ripple and Ethereum which have a huge following, but the cryptocurrency market has more than 1, 500 cryptocurrencies. And this number is increasing every single month as more come to market. Some of them even have some hilarious names like Sexcoin, Ponzicoin, AntiBitcoin and Cabbage.
FBI owns the second biggest Bitcoin stash
The US government is in the cryptocurrency market and is the second largest owner of all Bitcoins in circulation. These Bitcoins were seized from an illegal online marketplace, Silk Road that was closed down by the FBI. The number of Bitcoins is believed to be around 144, 000 which translates to over $1. 3 billion.
Cryptocurrency exchanges are banned in China
China is the world’s second-largest economy and its miners to control more than 70% of the Bitcoin networks’ collective hash rate. However, the Chinese government banned all cryptocurrency market exchanges in a bid to protect its citizens from incurring losses from the fluctuating prices of cryptocurrencies.
Asia rules the trading world
Asia is currently the region handling the highest volume in the cryptocurrency market. Cryptocurrency market exchanges in Asia are thriving thanks to the regions high population and low cost of electricity. These condition help facilitate large-scale mining. Exchanges like Binance, Huobi, OKex and Bitfinex continue to lead their counterparts in Europe and America by a wide margin.
$1 billion industry
The cryptocurrency market exchange industry is currently estimated to be generating over $1 billion annually with the top 10 exchanges alone raking in more than $3 million every day in fees. As the world continues to accept cryptocurrencies, the exchanges are among the biggest benefactors. Binance and Upbit are currently leading in revenues with each approaching $3. 5 million daily in fees levied.
Cryptocurrencies are taxable
Many people are unaware that the government expects taxes from their cryptocurrency market gains, but it does. However, very few people file their taxes on Bitcoin. In the US, Bitcoin is recognized as a property and not a currency as many people regard it. This makes it subject to taxation.
The cryptocurrency market is growing by the day as more people recognize the great potential digital currencies offer. With governments, financial institutions and major firms recognizing and more readily accepting cryptocurrencies and tapping into the blockchain technology, the future is bright for cryptocurrencies.