Bitcoin story — how did it come in existence — truth unveiled
Bitcoin, considered to be the world’s first cryptocurrency. Because it’s not physically presentable, the growth of bitcoin initially struggled with a lot of obstacles. Now, after a successful decade, bitcoin stands with one of the world’s most valuable assets. Since the bitcoin outbreak, the cryptocurrency industry has seen massive growth. Currently, the cryptocurrency market is worth more than $258 billion, according to the latest update on February 4, 2020. Thus, Bitcoin’s market cap is close to $169 billion and has a price above $9,000 at the time of writing. Almost 65% of the market is covered by BTC. BTC has dominated all cryptocurrencies for a decade.
When you look at the present numbers, then BTC is the only currency whose worth is over 9000 and the market cap is the largest of all. The prestige it has gained over the decades is not going to go away quickly. Building trust and protection among people was a challenge for bitcoin.
Let’s get going with the origin of the bitcoin. The first concept of electronic money transfer is not that of Bitcoin. Surprising right? The story began in 1982 when David Chaum introduced the concept of electronic cash payment without giving a single glimpse of it to third parties. The world, however, was not ready to accept the change. The abolition of the intermediate authority was not a good choice in the 1980s. But in 1990, David played with his theory in the form of Digicash. Nevertheless, the Amsterdam-based company could not attract investors and, in a few years, it was bankrupt.
In 1991, another developer implemented a proof-of-work based Hashcash money transfer system. The concept was developed by Adam Back, and now we can see that the system is quite close to bitcoin’s proof-of-work process.
After Adam’s Hashcash system, two new projects were set up in 1998. Wei Dai and Nick Szabo had come up with two different projects based on the same concept as bitcoin. Wei Dai came up with project ‘ b money’ whether a mathematical solution was involved in the establishment of a proof-of-work system. Later on, the transaction will be shown on the network. While in another example, Nick Szabo produced’ Bit Gold’ almost like the bitcoin blockchain. Proof-of-work gave bit and the next bit of string would be added to it after completion. Nonetheless, both of these ventures were not going on and they had to quit.
After years of trying when another visionary failed to bring a decentralized system into the economy, Satoshi Nakamoto made it possible. Identity is still in the mist whether it’s an individual or a group of people. But it has rendered the open money transfer system safe and secure.
2008 Bitcoin.org first had a whitepaper and a registry published on 31 October 2008. The White Paper was entitled “Bitcoin: peer-to-peer electronic cash network” including the concept of proof-of-work, mining, cryptography, removing the need for third-party participation, an automated form of cash transfer, etc. The blockchain process is simply adding transaction data one after the other without tempering the previous information. These details are referred to as block and the database chain is blockchain.
Satoshi Nakamoto, the founder of bitcoin, initially published a white paper, then in 2009 he created the first bitcoin and contributed it to the genesis network. The reward for authenticating each transaction data was originally 50 BTC. Bitcoin is designed to never finish the supply, although the supply is restricted to 21 million. Block rewards will be reduced every 210,000 blocks. Now the current status of the block reward is 12.5 BTC and soon it will again get halved, expected in May 2020.
As bitcoin was first developed in January, the first bitcoin recipient was Hal Finney around 10 BTC. In 2004 he was also the inventor of the first reusable proof-of-work method. Initially, the premium was $1 for BTC 1,309.03. Further on Satoshi released a new version of the app at the end of December 2009. When the exchange rate was established, BTC had to be used in the real world. Then one event made it possible for Bitcoin when Laszlo Hanyecz bought a $25 Pizza by giving 10,000BTC. The investment made a mark on the past of Bitcoin. It was mid-2010 that two crypto exchanges were introduced, and bitcoin was worth more than a penny. The exchanges were bitcoinmarket.com (now dead) and Mt.Gox. Further on, Mt.Gox. became the largest trading platform with 70% of the Bitcoin transaction value in 2013.
Bitcoin was also successfully mined for the first time in the year by Slush, the first mining pool. Mining ponds pool money to get bitcoin in a few mines. The market cap on Bitcoin reached $1 million for the first time in November.
Now, it was time for Bitcoin to start getting market attention. With bitcoin, when it hit over $1, the black web, Silk Road, began accumulating. Because Bitcoin was almost untraceable and did not require third-party authentication, Silk Road wisely accepted Bitcoin to purchase the illegal products. That time bitcoin faced a lot of abusive comments as it is money for only a dark market and there’s nothing that could bring the BTC to the mainstream. Having a negative Bitcoin environment never stopped growing. This reached the mark of $1,000 in 2013. In between the main Mt.Gox. Bitcoin exchange site. A number of security problems were met and the perpetrator of the 2000 BTC robbery. Early next year, the company will face another attack as it lost around 850,000 BTC at one point. Such two major security events are disrupting the Bitcoin price index. 2017 was the year with Bitcoin’s unprecedented growth when Bitcoin’s price hit over $20,000, a phenomenal moment in Bitcoin’s existence. However, the Bitcoin has never seen a 20,000 dollar house.
Bitcoin has a wide range of histories. The most controversial aspect that still fascinated the bitcoin because of the name of the maker. The unknown entity behind the bitcoin is still a fascinating bitcoin world subject. In 2010, Satoshi created a million bitcoin since joining the company. Eventually, David Anderson took the responsibility of the developer of bitcoin organisation.
Bitcoin’s value has collapsed over the decades. Currently, bitcoin’s 11 years of birthday is over and the founder of this bitcoin is still secret. Apart from developing this, Bitcoin has to comply with the administrative process. Once bitcoin could be used as an investment option, several countries released multiple warnings regarding bitcoin. Now the world is accepting bitcoin and the regulation is being revised.
Bitcoin has become common in nature, and many investors and traders are aware of Bitcoin. Bitcoin is now the unofficially stated blockchain brand ambassador. Many future Bitcoin ventures will eventually be accepted worldwide. Although staring at bitcoin is quite challenging, but now bitcoin is ranked number one by market capitalism and price.
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