NFTing Follow Jul 5
· 6 min read
Just like any business, Bitcoin also had its humble beginnings.What started as just a mailing list — and others considered it as spam mail — way back in 2008 discussing cryptography has now taken the world to a rollercoaster ride and started the fintech revolution.For the past 14 years, the first cryptocurrency has spiked and crashed and vice versa multiple times on its way to value tens of thousands of dollars in the present market.
Bitcoin is a decentralized peer-to-peer electronic exchange.Breaking it down, this means people can send money directly to one another without a bank or third party as an intermediary.It was created so people don’t have to rely on government or financial institutions to make financial transactions, allowing users to transact amongst themselves using the blockchain, which relies on a proof-of-work method for tracking and verification of transactions.
Bitcoin Timeline Overview 1998–2009 The pre-Bitcoin years
2008 — The Mystery of Satoshi Nakamoto
2009 — Bitcoin begins
2010 — Bitcoin is valued for the first time
2011 — Other cryptocurrencies emerge
2013 — Bitcoin price crashes
2014 — Scams and theft
2016 — Ethereum and ICOs
2017 — Bitcoin reaches $10,000 and continues to grow
Bitcoin Timeline History Bitcoin was created in 2009 as the first decentralized currency to run on Blockchain technology.
It was created out of the turmoil of the 2008 Great Recession as people started to lose their trust in monetary institutions and the financial system which is controlled by the government.
An individual or a group of people (identity remains a mystery until today) by the name Satoshi Nakamoto issued a white paper explaining the centralized monetary system and the amount of trust required when handling people’s money.Their point is that the traditional financial system requires third parties or intermediaries to work, requiring people to pay transaction costs out of their own money.
They presented Bitcoin as an alternative financial system that uses cryptographic proof to maintain the network’s integrity, instead of relying on third-party banks and other intermediaries.
Bitcoin might be referred to as the new financial system, but its underlying technology has roots going back even further.Here is a brief history of Bitcoin, the first cryptocurrency.
1998–2009 The pre-Bitcoin years Although Bitcoin was the first established cryptocurrency, there had been previous attempts at creating online currencies with ledgers secured by encryption.Two examples of these were B-Money and Bit Gold, which were formulated but never fully developed.
2008 — The Mystery of Satoshi Nakamoto A paper called Bitcoin — A Peer to Peer Electronic Cash System was posted to a mailing list discussion on cryptography.
It was posted by someone calling themselves Satoshi Nakamoto, whose real identity remains a mystery to this day.
2009 — Bitcoin begins On Jan.3, 2009, the blockchain was launched when the first block, called the genesis block, was mined.The first test transaction took place about one week later.The Bitcoin software was then made available to the public for the first time and mining — the process through which new Bitcoins are created and transactions are recorded and verified on the blockchain — begins.
2010 — Bitcoin now has a value As it had never been traded, only mined, it was impossible to assign a monetary value to the units of the emerging cryptocurrency.In 2010, someone decided to sell theirs for the first time — swapping 10,000 of them for two pizzas.
If the buyer had hung onto those Bitcoins, at today’s prices they would be worth more than $100 million.
2011 — Other cryptocurrencies start to emerge As Bitcoin increased in popularity and the idea of decentralization and encrypted currencies caught on, the first alternative cryptocurrencies appeared.
These are sometimes known as altcoin and generally try to improve on the original Bitcoin design by offering greater speed, anonymity or some other advantage.Among the first to emerge were Namecoin and Litecoin.Currently there are thousands of cryptocurrencies in circulation with new ones frequently appearing.
2013 — Bitcoin’s price crashed Shortly after the price of one Bitcoin reaches $1,000 for the first time, the price quickly begins to decline.Many who invested money at this point will have suffered losses as the price plummeted to around $300 — it would be more than two years before it reached $1,000 again.
2014 — Scams and theft Perhaps unsurprisingly for a currency designed with anonymity and lack of control in mind, Bitcoin has proven to be an attractive and lucrative target for criminals.In January 2014, the world’s largest Bitcoin exchange Mt.Gox went offline, and the owners of 850,000 Bitcoins never saw them again.Investigations are still trying to get to the bottom of exactly what happened but whatever the story, someone dishonestly got their hands on a haul which at the time was valued at $450 million dollars.At today’s prices, those missing coins would be worth $4.4 billion.
2016 — Ethereum and ICOs One cryptocurrency that came close to stealing Bitcoin’s throne this year is the Ethereum platform.This platform uses the cryptocurrency Ether to facilitate blockchain -based smart contracts and apps.
Ethereum’s arrival was marked by the emergence of Initial Coin Offerings (ICOs).These are fundraising platforms which offer investors the chance to trade what are often essentially stocks or shares in startup ventures, in the same manner that they can invest and trade cryptocurrencies.In the US, the SEC warned investors that due to the lack of oversight, ICOs could easily be scams or ponzi schemes disguised as legitimate investments.The Chinese government went one further by banning them outright .
2017 — Bitcoin reaches $10,000 and continues to grow The increase of cities and countries where Bitcoin could be spent contributed to its continued growth and popularity, during a period where its value remained below previous peaks.
Gradually as more and more uses emerged, it became clear that more money was flowing into the Bitcoin and cryptocoin ecosystem.During this period the market cap of all cryptocoins rose from $11bn to its current height of over $300bn.Banks including Barclays, Citi Bank, Deutsche Bankand BNP Paribas have said they are investigating ways they might be able to work with Bitcoin.Meanwhile the technology behind Bitcoin — blockchain — has sparked a revolution in the fintech industry (and beyond) which is only just getting started.
Bitcoin Today As of March 2022, one (1) Bitcoin is worth about $37,000.
It’s a long way from its all-time high but also a long way from its post-peak bottom in 2018 of just over $3,000.
While Bitcoin is still growing into its role as a store of value and unit of account, cryptocurrencies have largely buried the idea that money somehow isn’t money unless it is accepted as payment for taxes.
Future of Bitcoin No one is certain about what is in store for Bitcoin’s future.Whatever your opinion on Bitcoin and cryptocurrency — and educated commenters have described them as everything from the future of money to an outright scam — it seems they are here to stay.Will it replace government-controlled, centralized financial institutions? We are unlikely to know the answer for some time yet.
References: The History of Bitcoin, From a Mysterious Creator to Volatile BTC Prices From humble beginnings in 2008 to its 2021 price peak, Bitcoin (BTC) has taken investors and the world for quite the… money.usnews.com
The History of Bitcoin With a relatively short history, Satashi Nakamoto, Blockchain, and Bitcoin have all become household names that push… www.plus500.com
A Short History Of Bitcoin And Crypto Currency Everyone Should Read Bitcoin hit news headlines this week as the price of one unit of the cryptocurrency passed $11,500 for the first time… www.forbes.com
Cryptocurrencies & Bitcoin History : How it all Began | Ledger Ten years ago, Bitcoin emerged as the first cryptocurrency.
A lot has happened since that day – let’s to take a look… www.ledger.com
A Short History Of Bitcoin And Crypto Currency Everyone Should Read Bitcoin hit news headlines this week as the price of one unit of the cryptocurrency passed $11,500 for the first time… bernardmarr.com.
