Saturday, November 26, 2022

The History of Bitcoin

In the US, 34 million adults own cryptocurrency. Even if you don’t own some yourself, it’s very likely that you’ve heard of Bitcoin, which is the father of all crypto.

Bitcoin is definitely a cryptocurrency that everyone knows of. However, very few people know the history behind it. 

Are you now curious as to how this currency came to be? Then keep reading for a quick history of Bitcoin.

The Creation of Bitcoin

Bitcoin was first invented in 2008 by Satoshi Nakamoto, which is thought to be an alias. This person has never revealed themselves, and it’s very possible that it’s a pseudonym for several people who created Bitcoin together.

The purpose of Bitcoin was to be a decentralized currency. This meant that you wouldn’t need any intermediaries or banks to complete transactions.

The concept back then was the same as today. You’d use the Bitcoin network to send the coins, which provided anonymity and security.

The First Time Bitcoin Was Used

Nakamoto first released Bitcoin in 2009 as open-source software. He initiated this by mining the starting block of Bitcoin’s blockchain, aka the Genesis Block.

During 2009, other miners also contributed to mining the first 50 Bitcoins in existence.

The First Commercial Bitcoin Transaction

In 2010, programmer Laszlo Hanyecz was the first person to use Bitcoin commercially. He placed an order for 2 Papa John’s pizzas and paid with 10,000 Bitcoins.

That amount might seem absurd today, but back in 2010, Bitcoins were worth next to nothing.

Bitcoin Throughout the Years

For about a decade, there wasn’t much interest in Bitcoin. In the mid-2010s, it was used on the black market (such as the Silk Road) for illicit purchases, as it was hard to trace who the money came from and went to.

Bitcoin also became a currency that hackers demanded since it was so anonymous. You might’ve heard of ransomware, which locks up your computer until you pay the ransom. As you might’ve guessed, victims had to pay in Bitcoins to regain access to their devices.

This coin then gained popularity fast, reaching peak prices in December 2017 and June 2019. In these months, 1 Bitcoin was worth over $10,000.

However, it wasn’t until March 2021 that Bitcoin really exploded in value. It reached a record value of almost $59,000 per Bitcoin. Prices dropped, then reached another record high of over $61,300 per Bitcoin in October 2021.

Since then, the value’s dropped massively. As of June 2022, it seems to have stabilized at around $20,000 per Bitcoin, which is still a lot more than the peaks prior to 2021.

You can find out more about current prices by checking online.

Invest in Bitcoin

It’s not too late if you want to get in on crypto action. Buying Bitcoin can be a worthwhile investment, especially if you hold and watch the market.

So if you have some extra money, spending it on Bitcoin isn’t a bad idea. It may just be your ticket to a nice nest egg for retirement.

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