History of BitcoinBitcoin was created on 31 October 2008 by an alias Satoshi Nakamoto. Bitcoin’s creation followed the 2008 financial crisis when Lehman Brothers, a US investment bank filed for bankruptcy and negatively affected hundreds of investors. Bitcoin’s creation sounds a lot like the tale of Robin Hood, giving power back to the people.
Soon after its launch, Bitcoin’s white paper “Bitcoin: A Peer-to-Peer Electronic Cash System”, was published. The first 50 BTC were released in early 2009 after the “genesis block” was solved. The idea was to solve each block with computing power and people, or the machines, would be rewarded with some BTC tokens. This is how crypto mining started.
Following the release of the first 50 BTC, Nakamoto sent 10 BTC to a computer scientist named Hal Finney. At that time, one BTC cost $0.00076. A far cry from its current price of nearly $10 000!
The first tangible item that was bought with Bitcoin was a pizza. Today the amount of Bitcoin spent on the pizza is valued at $100 million!
As Bitcoin started to grow in popularity, Nakamoto announced in December 2010 that he would be withdrawing from the project. Until today, no one knows the true identity of Bitcoin’s creator.
Trouble in paradiseIt is true that the highest trees catch the most wind. This was the case with Bitcoin. Since its inception, it has captured the attention of various audiences. Bitcoin offers anonymous transactions that is untraceable. Unfortunately, some criminals used the technology to fund illegal operations and purchase illicit goods.
Regardless, Bitcoin has grabbed the attention of many and its price continued to grow to $1 000 in 2013. Whilst many called Bitcoin a scam and Ponzi scheme, the bad publicity turned out to be profitable for Bitcoin hodlers. Bitcoin until this day, continues to capture the attention of almost all media outlets, institutional investors, amateur and professional traders and hodlers across the globe.
In 2014, Bitcoin suffered another blow. Mount Gox, the biggest Bitcoin exchange at that time, was hacked. Many believed this to be the downfall of Bitcoin but in 2017, the world witnessed the true strength of Bitcoin as its price reached an all-time high of more than $20 000.
In no time, new crypto projects were launched and the potential of blockchain technology became a reality for many. Since Bitcoin reached its all-time high in 2017, many are patiently awaiting the next time Bitcoin reaches a new all-time high.
China welcomes blockchain technologyInitially, China wasn’t pro Bitcoin. In 2013, the People’s Bank of China prohibited financial institutions from performing Bitcoin transactions. In September 2017, cryptocurrency exchanges were banned and by July 2018, 173 such platforms were closed down.
However, last week Chinese president Xi stated their support for blockchain technology development in China. On Tuesday, 29 October 2019, news broke that the Chinese Central Bank will launch their digital currency called DCEP very soon. DCEP will be tested first. The news will definitely attract new players to the market. More than 1.4 billion people live in China.
In conclusion, Bitcoin’s future is bright. It is on everyone’s lips and is being adopted by more institutional investors, businesses and individuals who wish to invest their money. Get started today by buying Bitcoin on AltCoinTrader, the leading crypto exchange in South Africa.
Read AltCoinTrader’s blog about the upcoming 2020 halving event, “Bitcoin Halving 2020: What you need to know”.