Home Business Insights & Advice Bitcoin – a look back in history

Bitcoin – a look back in history

by Sarah Dunsby
2nd Aug 18 7:13 am

Even the most knowledgeable individuals in the tech-field have a difficult time understanding Bitcoin. It is a frequent discussion point and a hot topic among stock traders, entrepreneurs, and investors.

For those who don’t know, Bitcoin is a digital currency that is not regulated by a central authority like a bank or government. It is generated by “miners” who utilize unique hardware and computers to handle transactions, protect the network of the currency, and gather bitcoins in exchange.

According to supporters, it enables for safer transactions via the internet. That is because it uses blockchain, a technology that chronologically records cryptocurrency transactions using a public digital ledger. To securely execute deals, you can now use a trading software like Crypto Code.

Bitcoin has only existed for eight years. However, it is the highly valued and oldest cryptocurrency in the world. It had a controversial and rocky history in such a short period. It has also enticed a fair share of prominent followers.

Bitcoin’s birth

The birth of Bitcoin could be traced back to 2008 when its maker published a concept proof for Bitcoin. The creator only went with a pseudonym, Satoshi Nakamoto. Then, in 2009, it was published to the cryptocurrency mailing list.

In 2010, Nakamoto disappeared and left the project. However, other creators continued the work. The birthday of Bitcoin was the day Nakamoto mined the 1st 50 currency units, that was on January 3, 2009.

The elusive founder

The real identity of the creator of Bitcoin has never been proven. According to Newsweek, they have found the creator of Bitcoin in 2014. It was a resident of Temple City, California named Dorian Satoshi Nakamoto.

However, Nakamoto denied it vigorously. In 2015, Craig Wright, an Australian businessman said he’s the creator of Bitcoin. However, he could not give any evidence to back up his statement. Regardless of who this mysterious person is, we have him to thank for the wonderful technology he has introduced to the world.

Million dollar pizza

The 1st transaction that involves the use of Bitcoin was reported on May 22, 2010. It was when Laszlo Hanyecz said that he successfully bought a pizza for 10,000 bitcoins. Unfortunately, the same number of bitcoins were valued at $99 million last November 28, 2017.

Spending bitcoins

Individuals continue to utilize bitcoins to purchase goods and services, even though it might not seem like it. The biggest companies to accept bitcoins as a form of payment include Dish, Newegg, Expedia, and Overstock.com.

A major downfall 

Bitcoin suffered a major loss in early 2014 after the alleged hacking of a Japanese exchange, Mt. Gox. Around $460 million (2014 value) of Bitcoin currency was stolen. It was the biggest loss of Bitcoins in the world and upraised fears about how safe Bitcoin was.

Support from a huge financial company

Fidelity Investments, in Aug. 2017, became an uncommon standout among financial firms in accepting cryptocurrencies. The financial institution lets its customers utilize the Fidelity site to view their holdings of Bitcoin.

It’s evident that Bitcoin hasn’t had the smoothest path on its way to the success it now enjoys. But these challenges only prove that Bitcoin is a legitimate cryptocurrency project that continues to attract more supporters by the day. While prices have been on a downtrend since reaching an all-time high in December 2017, many investors and enthusiasts believe that Bitcoin still holds more value than what the numbers say.

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