History of Bitcoin: Backstory

Overview

Bitcoin was created in 2009 and is the first cryptocurrency. Since then, it has experienced considerable highs and lows. Bitcoin is not a tangible or physical currency. Bitcoin transactions are digital and are held in a public ledger. Bitcoin transactions are carried out through blockchain and are verified using huge amounts of computing power. Bitcoin is not backed by governments, banks, or any individual, and it is not considered a store of value by everyone. Even though it is not a legal tender, Bitcoin has triggered the launch of several thousands of cryptocurrencies which are often referred to as altcoins. Let us dive into the history of Bitcoin in this article.

Who Invented Bitcoin?

Bitcoin was invented by a mysterious person known as Satoshi Nakamoto, and it had been initially designed as a medium of exchange used for everyday transactions. It was created as an alternative to traditional banking after its collapse in the 2008 financial crisis. Cryptocurrencies have yet to gain mainstream adoption. According to research by Cambridge University, between 2.9 million and 5.8 million unique users used a cryptocurrency wallet in 2017, most of them for bitcoin. The number of users has grown significantly since 2013. From 300,000 to 7.1 million active users, according to a 2018 Chainalysis report.

Why was Bitcoin created?

The founder, Satoshi Nakamoto, explicitly stated that the reason for creating this digital cash system is to remove the third-party intermediaries that are traditionally required to conduct digital monetary transfers. Third parties incur high costs for conducting these services; these costs are then passed on to end-users and can restrict transactions below a certain size. 

Bitcoin Price History

The first surge in the price of Bitcoin happened in 2011 when the price increased to $1 in April and reached a record high of $32 in June, which was a 3200 % gain in 3 months. This rise was then followed by a sharp downturn in Bitcoin’s price and reached $2 in November 2011. At the beginning of 2013, the Bitcoin price steadily increased from $13.40, and in April, the price increased to $220. When the economy shut down due to a pandemic in 2020, the price of this pioneering cryptocurrency went to $7200, and it further increased to $18,353 in November 2020. Since then, the price has astronomically skyrocketed to $60,495 as of today.

How is Bitcoin Different from Other Cryptocurrencies?

• Bitcoin is more accessible, with more exchanges, more merchants, more software, and more hardware that support it.
• Bitcoin is far more liquid, with much larger volumes than every altcoin.
• Bitcoin has the largest developer ecosystem with more software and more implementations than any altcoin.
• Bitcoin has the most entrepreneurs creating companies around it with a lot of intellect, dedication, and creativity going toward making it more useful.
• The Bitcoin network verifies the transactions; all the transactions are recorded in a ledger where other users can see the balance and all the transactions of any address. This helps keep Bitcoin operations transparent.
• Bitcoin has a limited supply of 21 million coins that can be created. When this limit is reached, no more coins can be created. Miners can then collect fees for the transactions executed on the network.
• Bitcoin has a large lead as a store of value over every altcoin in having existed 8 years without failure. The security of Bitcoin has been proven far more than its much younger counterparts, with usage by almost every metric exceeding that of altcoins.

Benefits of Buying Bitcoin

• Bitcoin is transparent. Bitcoin transactions are encrypted, and it is recorded on the distributed ledger where anybody can view the transactions. This shows its transparency in its operations and its accessibility. Even though most of the cryptocurrencies offer similar properties, Bitcoin offers a better encryption rate, and it is difficult to hack.
• Bitcoin is fast and easy to use. The transactions executed on the network take around 4 seconds to 10 minutes, thus offering better speed than central payment networks such as PayPal, Visa, or Mastercard.
• Bitcoin provides anonymity. When you use Bitcoin, you don’t need to provide your email, name, social security number, or any other identifying information when making peer-to-peer Bitcoin transactions.

Final Thoughts

The history of Bitcoin started with its invention by the presumed pseudonymous Satoshi Nakamoto, who integrated many existing ideas from the cypherpunk community. Over the course of bitcoin’s history, it has undergone rapid growth to become a significant currency both on- and offline. From the mid-2010s, some businesses began accepting bitcoin in addition to traditional currencies. In 2021, Bitcoin’s price shot past $60,000. So what is in store for Bitcoin’s future? No one can tell for certain, but many see it as a bright and exciting place. So if you are also interested in Bitcoin and want to buy it, then you must check out Bitcoin Profit platform. It is an automated trading platform that can help to make good money from Bitcoin trading. Check experts’ reviews to know more further about this amazing platform. 

FAQs

• How Much Was Bitcoin When It First Started?

In the beginning, Bitcoin started to trade from $0.0008, and later, in July 2010, it came to $0.08 per coin.

• How Much Was a Bitcoin Worth in 2009?

When Bitcoin was introduced in 2009, the value of 1 Bitcoin was $0, and after 2 years, it increased to $1. 

• Is it Smart to Buy Bitcoin?

Bitcoin is associated with high liquidity, which makes it a great investment for the long term. Bitcoin’s value has gone up in the past few months, making it a much-demanded cryptocurrency.

• Who has the Most Bitcoin?

Satoshi Nakamoto, the founder of bitcoin, owns most of the bitcoins. It is said that he owns more than 1 million Bitcoins even though nobody knows who he is.