Investing in cryptocurrencies is trending at present. But have you wondered when digital yuan was introduced? This article provides a brief history of cryptocurrencies.
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Before Bitcoin
The idea of cryptocurrencies already existed during the 1980s, and they were called cyber currencies. In 1983, American cryptographer David Chaum introduced the idea of cryptocurrencies, a currency that only had a digital existence and would use a decentralized platform to secure transactions. In 1995, Chaum launched Digicash, a type of e-money.
In 1998, Nick Szabo launched Bit Gold, a forerunner to Bitcoin. Bit Gold needed a user with computer knowledge to solve cryptographic puzzles, and those who did were rewarded. However, the double-spending problem was still not solved until Satoshi Nakamoto introduced Bitcoin.
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Bitcoin
Bitcoin was finally launched in 2009 when Satoshi mined the first block of the Bitcoin blockchain network. In 2008, almost a decade after the introduction of Bit Gold, Satoshi Nakamoto published a paper with an article titled “Bitcoin – A Peer to Peer Electronic Cash System.” The article contained the customizations of Bitcoin. Unfortunately, the actual identity of Satoshi Nakamoto is still unknown, and it may be a pseudonym used by one person or an entire organization.
The first block mined is now known as the Genesis Block and resulted in 50 Bitcoins. The article also explained the decentralized platform for cryptocurrency against the centralized system of traditional currencies.
When Bitcoin was launched, it had no market value. In 2010, it had a market value of only 14 cents for one BTC, which increased to 36 cents around the end of the same year and finally settled on 29 cents.
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Growth of the cryptocurrencies
The crypto market didn’t experience any drastic growth until 2017, but the previous years saw some steady development. Bitcoin’s value kept rising and falling, but it had gained worldwide recognition had had some market value.
In 2011, Litecoin, an upgraded version of Bitcoin, was launched (now known as AltCoin). In 2012, the Bitcoin Foundation was built to promote cryptocurrencies. OpenCoin was also launched that year. In 2013, however, Bitcoin came under too much scrutiny, and the value kept on frequently rising and then falling.
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The era of scams
The decentralized system provides many advantages during transactions but also attracts many criminal acts. By 2014, many significant Bitcoin exchanges had collapsed, like Mt.Gox, due to bankruptcy. The losses of Bitcoins were majorly due to criminal activity.
The increasing news and rumours about cyber hacks lessened investments and enhanced security in the exchange platforms. Nowadays, larger platforms provide more guarantees on their reserve storage, and popular cryptocurrencies like Binance have created Secure Asset Fund for Users to protect their assets.
Earlier platforms also lacked private wallets, which are now prevalent.
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Popularization of Bitcoins
The software upgradation of Bitcoin in 2017 enhanced security, and the cryptocurrency witnessed a major growth since this period. By the end of 2017, Bitcoin had a market value of almost $20,000.
During this period, another cryptocurrency was launched called Ethereum, which was built on its own blockchain. Unlike Bitcoin, this cryptocurrency allows other platforms to build on its blockchain network.
Several other cryptocurrencies were launched in the same year, and they include Bitcoin Cash (BCH), TRON, Cardano (ADA), Ripple (XRP), etc. the market values of the cryptocurrencies kept on rising and falling after that.
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Current Scenario
Cryptocurrencies were emerging as alternative sources of income to many, and with the lockdown during the Covid-19 pandemic, the platforms witnessed many investments. Even though the market values of the cryptocurrencies kept fluctuating, 2020 saw another drastic rise in the market value of Bitcoin. Moreover, Tesla purchased a large share of $1.5 billion at the beginning of 2021. Bitcoin reached its highest record of $69,000 by the end of 2021.
Conclusion
The market value has lessened in 2022 due to high inflation, but with a high adaptation of Bitcoins and several rules made to protect the investors, the market value is expected to rise again. Also, many other types of cryptocurrencies have been introduced in the market, like NFTs and DeFi, which are profitable for investors. There are many apps introduced for bitcoin trading, and Bitcoin Future is an app where you can effortlessly trade Bitcoins. Click on the bitcoin code to start trading now.
