Important Moments and Insights From the Bitcoin History

Today Bitcoin has achieved a status as one of the largest cryptocurrency by market capitalization and has also prompted the rise of many other cryptocurrencies since its inception. You can use bitcoin to purchase video games, book your hotel room or make a donation to a reputable non-profit organization like UNICEF. But, if you're wondering how it all started, read our article below for an overview of the invention of Bitcoin and its history.

Invention

The term bitcoin was first used in a white paper called 'Bitcoin: A Peer-to-Peer Electronic Cash System' released on October 31st, 2008. Still, nobody knows the real identity behind the person or group of people that are responsible for this revolutionary invention as they/he/she used the pseudonym Satoshi Nakamoto. In the white paper, readers would find a comprehensive explanation about the distributed ledger system (it is called blockchain) , which cuts off the middle man ( financial institutions, banks) for managing the transactions made on the network.

Previous attempts for developing digital cash failed because they needed a secure third party to maintain the system. Satoshi Nakamoto solved this problem by developing a completely transparent distributed ledger system. This was actually the main vision of Satoshi Nakamoto, and he/she/they have successfully achieved this goal.

The First Transaction

Nowadays, there are trusted platforms like Bitcoin Era, which is a trading platform that allows investors to manually or automatically trade cryptocurrencies and potentially earn a profit. But before Bitocin took off in 2013, the first real-world transaction with Bitcoin took place in Florida, on May 22nd 2010, when Laszlo Hanyecz bought two pizzas from Papa John's that were worth 10,000 BTC. Laszlo Hanyecz was a bitcoin miner, and at the time this was the only way to accumulate BTC.

Otherwise, the first transaction between two people was between Satoshi Nakamoto and Hal Finney, an early supporter of bitcoin who downloaded the software on the day it was released. In the exchange with he received ten bitcoins from Nakamoto.

Bitcoin Miners

Bitcoin miners are the backbone of the decentralized network, they have advanced math skills and computer power to mine for bitcoins, while as long as one bitcoin miner doesn't have control over the half of the entire network the security and safety of the network are guaranteed. Also, the whole purpose of bitcoin mining was to monitor the network, approve transactions to prevent 'double spending problems' and ensure its transparency and legitimacy.

The First Bitcoin Exchange Platform

Besides mining for bitcoins, you could obtain bitcoin via trading on various forums, and you had to trust that the other side won't let you down. Fortunately, in March 2020, the first official trading platform called Bitcoinmarket.com was launched. The site accepted PayPal initially as a payment option of trading bitcoin for fiat money. At the time, there were many scammers and other issues that resulted in shutting down of the platform and the subsequent rise of many others.

Rapid Growth

In 2013 the price of one bitcoin had reached $13.50 per bitcoin. However, in April, after the price has reached a new height of $220 per bitcoin, it dropped suddenly to $70 per bitcoin. This will mark the start of the volatile trading history of the currency.

But, the price per Bitcoin really soared in October 2017 and reached $5,000, and it continued to grow to attain a price of $10,000 in November. It will reach a peak of approximately $20,000 per bitcoin in December, before a noticeable fluctuation of the price reaching $7,000 in April the next year. In the following years, 2019 and 2002, Bitcoin has yet again risen to $10,000 by June since then its prices hit new lows and highs. Most notably, the lowest price per bitcoin for 2020 was $5,000 in March.

Summary

Although Bitcoin didn't replace fiat currencies, it reduced the reliance on fiat money. There are more organizations and countries that understand the significance of the cryptocurrencies in general, especially now when the global economy is entering a recession.

In fact, Bitcoin is an official payment method in Japan, while the president of China Xi Jinping has said the county is looking to seize the opportunities provided by cryptocurrencies. This is also true in many countries around the world like South Africa, the USA, Germany, to name a few. That being said, many people are looking to learn more about Bitcoin and explore trading options on various platforms, as an investment in their future, and as a potential way to earn a passive income.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!