How Cryptocurrency started ? BITCOIN

The cryptocurrency term was first mentioned in 1989. However, it was only in the early 1990s that cryptographic protocols, as well as software, began to be developed that would enable the creation of a truly decentralized digital currency.

Cryptocurrency received its name because it uses cryptography encryption techniques to verify transactions. This means advanced coding is involved in storing and transmitting cryptocurrency data between wallets and public ledgers. Encryption aims to provide security and safety.

The first Cryptocurrency Bitcoin was introduced in a white paper published online in late 2008 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto.  It was a unique and elegant solution to the problem of establishing trust between different online entities, where people may work anonymously (like Bitcoin’s own creator) by pseudonyms.

It aimed to solve a big problem of commerce on the internet: how we transfer value between two people without a trusted intermediary (like a bank) in the middle? As a currency designed for the internet, the idea was to allow financial transactions which may range across borders, around the globe without the involvement of existing intermediaries like banks (which have different rules for different countries), credit-card companies , lenders, or even governments. The idea was unique and simple that any two people—living anywhere on earth—can send payments to each other without encountering any gatekeepers in between.

This created the potential for an open financial system which will be more efficient, more flexible, lightning fast and more innovative.  And from then the concept started becoming more and more popular. And as per the internet the first real-world transaction using Bitcoin occurred in 2010 when a programmer named Laszlo Hanyecz bought two pizzas for 10,000 bitcoins. At that time, Bitcoin was new and had a very low value, and the transaction was seen as a novelty.

As more and more merchants began accepting it as payment, the value started rising as per demand and supply rule. By 2013, Bitcoin had reached a price of over $1,000 and everyone started speaking about it. Few rags to riches stories started floating over the internet which attracted more investors. But, the one way uptrend took a break in late 2013, and the price of Bitcoin crashed, and it lost over 80% of its value. This crash was caused by a combination of factors, including the collapse of the Mt. Gox exchange and concerns over the regulatory environment for Bitcoin.

The investors had an eye on it and the one’s who had faith over the idea took advantage of the fall and accumulated more coins as a future investment. And despite all the timely setbacks Bitcoin has continued to grow in popularity and adoption. And today it’s the most well known cryptocurrency in the world. 

“Bitcoin is a technological tour de force.”

Bill Gates, co-founder of Microsoft, investor, and philanthropist  

“Bitcoin is the most important invention in the history of the world since the Internet.”

Roger Ver, Bitcoin angel investor

The Blockchain technology is one of the most crucial component of Bitcoin. It keeps track of who owns what, just like a bank does with its assets. The Bitcoin blockchain is also decentralized, meaning that anybody can view it and no single party controls it, which distinguishes it from a bank’s ledger.

Although thousands of other cryptocurrencies have been introduced since the introduction of Bitcoin (abbreviated as BTC), it continues to be the most valuable in terms of market capitalization and trading volume. The reason for this will be discussed soon in new article. Till then, stay safe and keep learning. See you soon , stay tuned!

Disclaimer: Any financial and crypto market analysis given here is for educational purpose only and it’s not a financial advice. Investment in Cryptocurrencies are subject to market risk, please do extensive research and consult your financial advisor before Investing.

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