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The History of Cryptocurrency

The History of Cryptocurrency

Many individuals do not have a clue about how or why cryptocurrency first came about. Ten years ago, Bitcoin emerged as the first cryptocurrency. Since then, thousands of other cryptocurrencies have launched, and there does not appear to be any sign that things are slowing down anytime soon.

The history of cryptocurrency began in which its basic idea is that it is decentralized, in other words, no government or other organization has control over the digital currency. Along with that, one of the ultimate goals was to make the use of cryptocurrencies anonymous. Slowly but steadily, the cryptocurrency has risen to prominence and is now a force that even long-standing institutions like banks, regulatory organizations and governments have had to recognize.

Many folks know that there is something called cryptocurrency and that it has something to do with money. They also might be vaguely aware of Bitcoin, which is by far and away from the most popular cryptocurrency, but it is far from the only one. What they might not understand is why these digital coins were first created, what features about them made adopters so excited, and why they continue to evolve from those beginnings to take new shapes and forms practically every day.

Let us take a look on a brief history of the emergence of cryptocurrency.

Pre-Bitcoin years

Between 1998-2008, there had been previous attempts at creating online currencies with ledgers and encryption security. Examples of undeveloped online currencies are B-Money and Bit Gold.

The Emergence of Mr Nakamoto

In 2008, a paper called Bitcoin – A Peer to Peer Electronic Cash System was posted to a mailing list discussion on cryptography by a mysterious figure named Satoshi Nakamoto. The real identity of this person or a group of people still remain clueless to people up to this day.

The Beginning of Bitcoin Era

Bitcoin software and mining – in which the process through which new Bitcoins are created and transactions are recorded and verified, are made available to the public in 2009.

Bitcoin is valued and recognized

A year later on 22 May 2010, Laszlo Hanyecz decided to sell his Bitcoins for the first time – swapping 10,000 of the coins for two pizzas. Should he only sell those Bitcoins today, they would worth more than 100 million dollars. The event is still celebrated today as Bitcoin Pizza Day.

Alt Coins Arrival

Once the idea of decentralized ledger and encrypted currencies are well-known among public, the first alternative currencies appear in 2011. Among the first to emerge are Namecoin and Litecoin, designed generally to improvise on the original Bitcoin by offering greater speed and some other advantages. There are currently over 1,000 other cryptocurrencies available in the market.

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Bitcoin price declines

In 2013, shortly after Bitcoin price reaches $1000 for the first time, the price begins to quickly decline leaving many who invested money at that point to have suffered losses around $300.

Theft attack

In January 2014, the world’s largest Bitcoin exchange platform – Mt. Gox went online and the owners of 850,000 BTC lost them and never able to retreated them back. At that time, value of the lost Bitcoins were at $450 miliion, which is now worth $4.4 billion. Investigators are still trying to get to the bottom of what exactly happened.

Ethereum & ICOs

One of the alt coins came close to outrun Bitcoin in 2016, as enthusiasm grew around the Ethereum platform. This platform uses cryptocurrency known as Ether and its arrival marked by the emergence of Initial Coin Offerings (ICOs). These are fundraising platforms that offers investors the opportunity to trade stocks in startup ventures. Due to lack of oversight ICOs, many could easily be scams and ponzi, resulting in full ban by Chinese government in the region.

Bitcoin reaches $10,000 and growing

In 2017, market cap of all cryptocurrencies rose from $11 billion to its current height of over $300 billion. This is due to the gradual increase in places where Bitcoin could be spent and other alt coins continued growth in popularity.

There have been split opinions on Bitcoin and other cryptocoins. Some has described them as everything from the future money and some has claimed it to be outright scam. As it seems from the historical surge of cryptocurrency, it is safe to say that the market is currently heading in a positive direction.

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