Bitcoin’s Evolution Through The Years
Bitcoin’s inception gave birth to the rise of cryptocurrency in the market. After its release in 2009, different kinds of digital currencies such as Litecoin, Ethereum, Cardano and more appeared to give people more options in investing and managing their funds. Despite being the world’s popular asset, it’s still a mystery to some on how this token began.
Are you curious to know how Bitcoin came about? If you want to know more about the world’s digital gold, read this article here.
Early beginnings of cryptocurrency
Before Bitcoin was created, there were already ideas of cryptocurrency in the late 1980s. It all started with American cryptographer David Chaum who researched various forms of electronic cash. He founded DigiCash in 1989 which was one of the first electronic money companies in the world.
The cryptographic protocols Chaum created for the DigiCash transactions became the foundation of cryptocurrency. DigiCash is a token that acts as a currency to safely transfer money from one person to another. Due to this, it became an important part of cryptocurrency’s birth. While a lot of crypto enthusiasts see this today, it was difficult for the company to convince banks to adopt its technology back in 1998 which resulted in them filing for bankruptcy.
Apart from DigiCash, another form of an early digital asset is B-Money which was proposed by computer scientist Wei Dai in 1998. It was designed to allow the distribution of electronic cash anonymously without the need for a third party.
How Bitcoin started
All the cryptocurrencies people know today began from the digital asset that changed the world of the monetary system that we know today. Known for being the first official cryptocurrency, Bitcoin introduced a new way for people to pay for products and services as well as transfer money to anyone around the world.
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Publication of the white paper
Bitcasino paved the way for other digital assets in the market today. It all started with a white paper published in 2008 under the name Satoshi Nakamoto. The white paper, titled ‘Bitcoin: A Peer-to-Peer Electronic Cash System’, states lower transaction costs compared to traditional online payment systems. Additionally, it also stated that Bitcoin is operated by a decentralized authority which means that there’s no third party involved.
Bitcoin is designed as an alternative to traditional banking systems to allow people to exchange money without intermediaries that banks have. The cryptocurrency had its first block mined in January 2009. Since Bitcoin was new to people, it had no real value then and was only priced at US$0.14 in April 2010.
The first transaction using Bitcoin happened in May 2010 when Laszlo Hanyecz bought two pizzas for 10,000 BTC. Crypto enthusiasts saw a change in Bitcoin’s value which was at US$130 million after a year when Forbes and Gawker published an article about Bitcoin.
Rise and fall in the market
Bitcoin’s price constantly rose and fell over the years due to various circumstances. One of those is when an illegal Silk Road website was shut down in 2013 for using Bitcoin as one of its trading currencies.
In 2014, Tokyo-based crypto exchange Mt. Gox declared bankruptcy due to fraudulent transactions. This resulted in Bitcoin losing over 850,000 BTC and led to a decline in its market capitalization by 50%.
Fortunately, Bitcoin was able to recover when its value doubled to US$10,000 in 2017 and was at US$19,783 by December of the same year. Due to this, it gained traction in the world of the modern finance sector. Even governments and corporations began developing their own digital asset to go against Bitcoin.
However, Bitcoin’s price fell again to US$7,000 in April 2018 which continued to decline to US$3,500 in December of the same year. A similar situation happened the following year when Bitcoin’s price rose to US$10,000 in June only to fall again to US$7,000 by December.
It wasn’t until 2020 when Bitcoin’s price skyrocketed. During the COVID-19 pandemic, Bitcoin’s price was at US$7,200 and due to concerns about the global economy, a lot of people started turning to cryptocurrency. By November, Bitcoin was trading for US$18,353.
In December 2020 Bitcoin’s price reached US$24,000 and continued to rise the following year. In less than a month, it surpassed its record the previous month and rose to US$40,000 in January 2021. By March 2021, the world’s digital gold’s price peaked at over US$60,000.
In April of the same year, Bitcoin’s price rose to US$64,000. However, its price fell by 50% and became US$32,000. By November of 2021, Bitcoin rose again and hit US%$68,521.
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Author: iGaming Team