Bitcoin currently is the most popular cryptocurrency in the world. On January 3, 2009, the first Bitcoin was mined and the genesis block of bitcoin was 0. The first Bitcoin transaction was carried out on 12 January 2009. Blockchain technology is the only technology that is used in all crypto exchange platforms and has earned a considerable amount of credibility in other sectors. The brief history of Bitcoin is necessary to understand for new enthusiasts and users such that they become aware of its recent history. It will instill more confidence and improve familiarity too.
Origin of Bitcoin
In 2008, an anonymous entity called Satoshi Nakamoto created and introduced to the world the first and most memorable example of a decentralized cryptocurrency called Bitcoin. Nakamoto in a nine-page document publishes the origin of Bitcoin. Unlike other forms of digital currency, Satoshi intended to ensure it operates free from any centralized control. The centralized controls refer to governments and central banks. Therefore, this idea was revolutionary in the history of currencies and financial systems. The creator Satoshi Nakamoto has no formal or informal control over Bitcoin and the currency operates without the help of its creator. Thus, Bitcoin is developing automatically and the larger crypto community is realizing its potential.
Timeline of Bitcoin’s Development
The concept of cryptocurrency began in 1983 and today because of its success, it is gaining interest from many investors. The key moments of Bitcoin’s development include:
- American cryptographer David Chaum in 1983 published the concept of electronic money that will have an anonymous identity. He called electronic money “eCash”. His dream materialized in 1989 when he founded his company Digicash. However, the concept failed to attract a substantial number of investors. Subsequently, a large credit card issuer bought his test bank and this led to the company’s dissolution in 1998.
- Bitcoin in 2009 became the first decentralized cryptocurrency by Satoshi Nakamoto. The exact identity of the creator remains a mystery to date.
- Forbes declared Bitcoin as the year’s best investment in 2013.
- In 2014, Bloomberg countered this claim.
- In 2021, the Securities and Exchange Commission in the US approved its strategy. It was the first futures exchange-traded fund.
- FTX the leading cryptocurrency exchange by trading volume declared insolvent in November 2022.
- January 2024 was a memorable month in the history of Bitcoin. This is because the Securities and Exchange Commission approved the first 11 spot Bitcoin ETFs. It helped in boosting the confidence of investors regarding its value. It is also experiencing a significant price surge following the decision.
Read More- Potential of Stablecoins in Decentralized Finance
Bottom Line
Cryptocurrencies have come a long way since Bitcoin’s inception in 2009. The number of crypto users in the world is now approximately 580 million. This clearly shows that cryptos are gaining popularity. There is also a paradigm shift in the attitude of central banks and national governments towards cryptocurrencies. The earlier hostile and skeptical attitude towards cryptos is quietly waning as more countries are endorsing standard regulations. Some governments have already granted official recognition to cryptos. Therefore, cryptocurrencies are going to embrace more significant changes that can disrupt the existing traditional financial systems.
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