While Bitcoin is the world’s first cryptocurrency, many years before Bitcoin was born, there had been various attempts at creating fully decentralised cryptocurrencies and secure ledgers that would store cryptos. In other words, the technology behind Bitcoin and other cryptocurrencies that are in use today is not something new or something born with Bitcoin.
All cryptocurrencies have their roots in Bit Gold and B-Money which were formulated long before Bitcoin appeared in the headlines. B-Money was created by computer engineer Wei Dei who rose to prominence thanks to his work in cryptography.
In addition to developing the Crypto ++ library, Wei Dei also introduced the B-Money system which was never publicised. However, following the introduction of the B-Money system, the interest in cryptocurrencies increased among other experts and professionals in the field of cryptography.
Alongside B-Money, Bit Gold was the earliest attempt at creating a fully decentralised currency. Bit Gold was proposed by Nick Szabo back in 1998. Even though the Bit Gold project was never fully implemented, Bit Gold is one of the major precursors to the world-famous Bitcoin protocol.
From Bit Gold and B-Money to Bitcoin and other cryptocurrencies
The most basic Bitcoin (BTC), Ethereum, Litecoin, and other cryptocurrencies concepts were described by Wei Dei in his B-Money system. Wei Dei was also one of the very first people contacted by Bitcoin’s author Satoshi Nakamoto.
If you take a look at the first Bitcoin whitepaper, you can see that Wei Dei’s B-Money system is referenced. A lot has changed in the world of cryptocurrencies since 2009 when Bitcoin appeared on the scene.
Following the creation of the world’s very first fully decentralised payment system, numerous other similar novel payment options, and systems known as cryptocurrencies emerged on the scene. According to this Statista report, back in 2013, there were only sixty-six decentralised payment options in the world. The number of cryptocurrencies operating went from 506 in 2014 to over 7500 in November of 2021.
According to most experts, cryptocurrencies can easily become the main way people across the globe pay for services and goods in the years to come. One thing is for sure, cryptocurrencies such as Bitcoin have changed the way people invest their savings.
As the global economy is moving towards a more digitally-friendly environment, cryptocurrencies have become one of the most promising additions in the global payments and investments sector.
Investing your savings in cryptocurrencies is a bit risky, but at the same time very profitable. This was recognised by many people who invested their life savings into Bitcoin. Investing in Bitcoin and other cryptocurrencies is an excellent choice if you are looking forward to gaining direct exposure to the growing demand for cryptos. On the other hand, investing in stocks is a safer, but at the same time, less profitable option.
However, following the rising demand for cryptocurrencies, it is expected to see more people investing their savings in cryptos in hopes of making serious profits. While the value of cryptos fluctuates a lot, nobody can deny the fact, investing in cryptos can be extremely lucrative.
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision. London Loves Business bears no responsibility for any gains or losses.