The notion of bitcoin was invented by a man named Satoshi Natamako in 2009. The man, whose identity is secret to the rest of the world, sought to introduce a virtual currency that could be used instead of real money. He put a press release titled “peer-to-peer electronic cash” on the cryptography mailing list.
The formation of blockchain technology began on January 3rd, 2009. The first line of code was written to establish a blockchain system for Bitcoin. After a few months, though, the system was ready to adopt the crypto idea and create bitcoins. This was the beginning of the Bitcoin Era.
The future of finance had arrived, but it wasn’t very helpful. People were transferring bitcoins as a token of gratitude. However, the value of bitcoins increased in 2010 when the first transaction was done. On May 22nd, Laszlo Hanyecz ordered two pizzas for $30 and paid the delivery guy 10,000 bitcoins instead of cash.
Now, if any of them had kept those 10,000 bitcoins in today’s market, they would be worth roughly $38 million at the current price.
Throughout this time, bitcoin was popular among three groups: a small group of early investors looking for ways to earn money, network miners, and people who wish to test out different ways to make money. However, later on, a new group of people joined the party: financiers. For better insight you can read the benefits of blockchain technology.
Bitcoin’s Birth
No one predicted that a system would emerge and overthrow the current financial system almost 11-12 years ago. When a press statement was issued, however, things became more real.
The financial institutions were severely shaken as a result of the banking crisis. A group of investors and other tech-savvy believers deliberately constructed this crisis. Meanwhile, with the introduction of bitcoin, a new currency emerged that claimed to be built on a decentralized network allowing transactions to be conducted without trust.
Satoshi’s article emphasized the same concept: “Peer-to-peer electronic cash that will enable users to send money from one another through the financial system,”
The impact of the financial crisis was visible in bitcoin’s concept. Financial institutions had lost trust, and a money market fund called the Reserve Primary Fund exacerbated the problem. The funding institution was the one that made a mistake. If you put $2 into the market, you will only earn 196 cents back. All of this was since the market fund was wholly invested in the company “Lehman Brothers,” which had recently experienced a surge in value.
The reaction to Leman’s bankruptcy rippled throughout the financial markets, clarifying how banks were implicated in all of this turmoil. There were two options for getting out of this problem. The first was to change the financial system to make it stable and functional or to introduce a new one. Some were aware of bitcoin at the time, and the cryptocurrency was a hot topic of discussion as people seriously considered replacing it with the existing crippled system.
The crypto “bitcoin” showed how phoney money is and how easily anyone may lose it with all of these occurrences. Coins and tokens, on the other hand, had monetary worth. It was used to make transactions easier by allowing people to buy and sell products. Furthermore, it would allow empires to fall owing to a lack of it back then.
When circumstances became more difficult, many individuals began to feel that there was another option. With all of the attempts to provide an online payment system, bitcoin had the potential to succeed and make transactions easier, whereas others had failed.
Bitcoin Era
With the financial system’s credibility eroding, bitcoin’s time had come to shine. Many people were flocking to the cryptocurrency market in the hopes of profiting from a decentralised network. The blockchain protocol, upon which bitcoin was founded, also played a role in persuading people. Bitcoin became a more secure and dependable currency after the blockchain was created.
Bitcoin became popular among people worldwide in a matter of years. People were thinking about putting their money into something. Bitcoin’s market value increased in 2017 as more people became interested in the coin. However, the worst was yet to come. The bitcoin market crashed in 2018, causing concern among investors and the general public.
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