Cryptocurrencies are digital currencies not controlled by any central authority. The term cryptocurrency first came into being during the 80s, and it was called cyber currency at that time. Interestingly, these coins started becoming popular in 2008 when Bitcoin was introduced on the market. An anonymous person was accountable for creating Bitcoin under the name of Satoshi Nakamoto. know more about immediate-edge.pl by clicking here
In this blog, we will mention a brief history of cryptocurrency that will be interesting for you.
The idea for a cryptocurrency
While most of us associate the idea of cryptocurrency to be new, but actually it came to market in 1983. David Chaum, an American cryptographer, outlined an early form of cryptographic digital money. This idea was intended for a currency that one could send untraceable and in such a way that no central entity would be needed. This person built on his concepts in the year 1995 and developed Digicash, a proto-cryptocurrency. User software was needed by it for withdrawing money from a financial institution, and encrypted keys were required for sending the said funds to a recipient.
In the year 1998, Nick Szabo was accountable for designing Bit Gold which is thought to be Bitcoin’s forerunner. A participant was needed by it to dedicate computer power for the purpose of solving cryptographic puzzles, and those that were able to solve the puzzle got a reward. Along with the work done by Chaum, it resulted in something almost identical to resembling Bitcoin.
However, the disreputable double-spending issue (it is possible to copy and paste digital data) could not be solved by Nick Szabo without using a central authority. Consequently, it was not until 10 years afterward when the aforementioned Satoshi Nakamoto introduced Bitcoin, followed by other cryptocurrencies as well.
Cryptocurrency history highlights
1. The pre-Bitcoin years (1998 to 2009)
Even though Bitcoin was the first recognized cryptocurrency on the market, there have also been attempts to create online currencies before that. Bit Gold and B-Money are glaring examples of those.
2. Mr. Nakamoto – 2008
Introduction of the concept of the decentralized economy with Bitcoin.
3. Bitcoin begins – in 2009
The Bitcoin application was introduced to the public, and the process of mining started as well.
4. Bitcoin is valued for the initial time – in 2010
It wasn’t possible to assign any monetary value to Bitcoin units since it was never traded. In the year 2010, somebody exchanged 10,000 Bitcoins for a couple of pizzas.
5. Rival digital currencies pop up – 2011
The alternate cryptocurrencies were introduced for the first time after the increase in popularity of Bitcoin. We often call these altcoins these days. The first altcoins that were introduced were Litecoin and Namecoin. You will now come across more than 1,000 digital currencies in circulation.
6. The price of Bitcoin crashes – 2013
The price started falling after the price of Bitcoin became $1,000 for the initial time. Eventually, the price dropped to about $300, and many investors suffered losses at this stage.
7. Theft and scams – 2014
At times Bitcoin has proved to be a profitable and attractive target for criminals. Mt. Gox, which happens to be the biggest Bitcoin exchange on the planet, went offline in 2014, and individuals ended up losing as many as 850,000 Bitcoins eventually. An investigation is still being made on what exactly took place, but it is for sure that there was some sort of forgery out there. These missing coins would be worth $4.4 billion.
8. Bitcoin continues to grow after reaching $10,000
Gradually with the emergence of more and more users, it became apparent that more cash was flowing into the cryptocoin ecosystem and Bitcoin. The market cap of every cryptocoin ascended from $11 billion during this period to its present height of more than $300 billion. Financial institutions such as Citi Bank, Barclays, Deutsche Bankand, BNP Paribas, and so on have asserted that they are trying to find out avenues that will allow them to work with Bitcoin. At the same time, blockchain, which is a technology behind Bitcoin, sparked an insurgency in the fintech industry, which is getting started at present.
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