December 8, 2022

A Brief History of Bitcoin

As a global, decentralized cryptocurrency, cryptocurrencies like Bitcoin need to be traded in a secure system. The purpose of this trading system is to make exchanging money as easy and safe as a bank account.

Anyone can use a Bitcoin transaction system, however, exchange transactions must be executed securely using a verification system called Blockchain technology. Blockchain technology allows anyone to verify transactions, which makes it virtually impossible to forge a transaction. Through Blockchain technology, each transaction can be permanently recorded to a “history” of all transactions that were entered into the system. This system is also completely decentralized, meaning that it has no central authority, or control over the transactions taking place.

Bitcoin also features a built-in protection against 51% attacks, meaning that it can also be shielded from attacks, by mining 51% of the blocks. To forge a transaction, one would need to control 51% of the mining power, because, without this power, it is impossible to forge a block.
Shortly before the birth of Bitcoin, the idea of a decentralized, global economy based on cryptocurrency was proposed. In August of 2009, the white paper entitled Bitcoin: A Peer-to-Peer Electronic Cash System was published. The inventor of Bitcoin is a mysterious creator named Satoshi Nakamoto.

Bitcoin began as a small and protected economy. About a year later, in 2010, Satoshi made Bitcoin open source by releasing the source code for the open-source software. Also in 2010, Satoshi mined the genesis block, which is the first block that was created, and is worth approximately 19 million dollars in the present day.
The currency reached its highest point in 2011, when it reached a price of nearly US $1,100 per Bitcoin. In March of 2017, the cryptocurrency market crashed and the price of Bitcoin fell to $760. Today, it is a little over US $4,000 per Bitcoin.

In 2012, Cryptsy was founded, which is now regarded as a precursor to the modern cryptocurrency industry.
In 2014, 1 Bitcoin was worth almost $1,500. Today, one Bitcoin is worth approximately US $8,200.

The anonymity of Bitcoin is largely what makes it attractive. When someone buys something from an anonymous person, chances are they are trusting the person without knowing who it is.

However, in the modern day and age, anonymous transactions are not as appealing or necessary as they used to be. While the ability to make anonymous transactions is appealing to some, the use of cryptocurrency has dwind.