A Short history of Bitcoin and cryptocurrency

by Klaus on May 24, 2019

in Cryptocurrency

Cryptocurrencies are digital currencies that are used by private individuals or groups of people. Most cryptocurrencies aren’t regulated by the national governments therefore they are recognised as another form of currency. Bitcoin is one of the most popular cryptocurrencies and it is the first to be used globally. Bitcoin has existed since 2009 although it is still referred to as new.

History of Bitcoin and cryptocurrencies

1998-2009: Before Bitcoin

Bitcoin was the first cryptocurrency to be recognised and available for use however, there have been attempts at establishing online currencies previously. Two of these examples are B-Money and Bit Gold however they weren’t adequately developed.

2008: Mr Nakamoto

Bitcoin-A peer to peer electronic cash system paper was sent to a mailing list discussing cryptography. This was sent by a sender that called themselves Santoshi Nakamoto and to this day no-one is sure of the real identity.

2009: The start of Bitcoin

The software for Bitcoin was made available for the first time in 2009 together with mining, which is the process in which new Bitcoins are made and all transactions are logged and then confirmed on the blockchain.

2010: Bitcoin becomes valuable

Previously bitcoin could never be traded, only mined, so it was not possible to place value on the evolving cryptocurrencies. During this year, someone made the decision to trade their cryptocurrency for the first time. They traded 10 000 cryptocurrencies for two pizzas. The same bitcoins today would be worth over $100 million.

2011: Cryptocurrency rivals emerge

Bitcoin became more popular and people began to latch on to encrypted currencies. In this year, rival cryptocurrencies emerged which are known as altcoin. They attempted to improve on the original design of the Bitcoin by offering a few other advantages. Namecoin and Litecoin were some of the other cryptocurrencies that emerged. Presently there are about 1000 cryptocurrencies available and new ones are appearing on an ongoing basis.

2013: The price for bitcoin crashed

After the price of a single Bitcoin reached $1 000 for the first time, the value began to decline rapidly. People who invested their money suffered losses as the price lowered to a staggering $300 and it was over two years later that it increased to $1000 once again.

2014: Robbery and cheats

Bitcoin became an attractive target for thieves and in January 2014 Mt. Gox which was the worlds largest Bitcoin exchange, disappeared. 850 000 Bitcoin owners never saw or heard of this agency again. The total money lost amounted to $450 million which would today be valued at $4.4 billion.

2017: Bitcoin grows steadily even after reaching $10 000

Bitcoin is now accepted at many more places and this led to its steady growth and increased value. Various banks including Barclays, Citi Bank and BNP Paribas are even looking for ways that they can begin working with Bitcoin. Blockchain which is the technology behind Bitcoin has triggered an uprising in the fintech industry.

Trading is simple

If you wish to trade and get involved in cryptocurrencies, you can buy bitcoin for USD or UAH online or at a Bitcoin service provider and have it withdrawn to your bank card. Bitcoin is a lucrative digital currency that is growing daily and many people who have decided to take a chance have been pleased with the outcome.

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