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A Brief History of Cryptocurrency

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Just over a decade ago, a new technology emerged that would eventually take the financial world by storm.

Since this pivotal moment, a huge amount of ground has been covered in bitcoin – and cryptocurrencies in general – with its fair share of rapid rises and dramatic declines.

But aside from all the drama usually reported when we talk about cryptocurrency prices, what is the history of this revolutionary technology and how did we get here?

idea of ​​bitcoin

While 2009 is often cited as the birthplace of bitcoin and cryptocurrencies, the basic idea for the technology originated even earlier.

In fact, 10 years before we saw reports of the price of bitcoin or Luna in the news, a computer engineer by the name of Wei Dei published an academic paper discussing the idea of ​​”B-money.” It was a digital currency that could be sent to recipients using a series of untraceable digital aliases.

Following this, another early blockchain futurist wrote about the idea of ​​”bit gold,” a digital, decentralized currency system.

birth of bitcoin

While the idea of ​​an all-digital currency was not tied to the traditional centralized international financial system, it wasn’t until 2009 that bitcoin emerged as the world’s first cryptocurrency.

It came about when a mysterious figure named Satoshi Nakamoto published a groundbreaking white paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System,” which laid out the basic functionality of the bitcoin network.

Just months after it was published, the first block was mined on the bitcoin network, essentially giving birth to cryptocurrency as a functioning field.

Rise of the cryptocurrency market

Shortly after the ‘Genesis’ block was mined on the bitcoin network, there was a growing demand from interested investors for a platform where they could easily buy and sell this innovative new technology.

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This led to the now-defunct bitcoinmarket.com and the infamous Mt Gox exchange. During this time, the popularity and demand for bitcoin grew rapidly. This made the price of bitcoin equal to the US dollar for the first time.

Several other digital assets were also created during this time, including Ripple and Litecoin.

Disaster Strikes: Scam on Mt. Gox

In 2011, the cryptocurrency sector experienced its first major scandal when the Mt Gox exchange was first hacked. This resulted in the theft of over 2,000 bitcoins.

This first hack was followed in 2014, when approximately 850,000 BTC was removed from the platform. At the time it was worth about $460 million, although at today’s prices it would run into the billions of dollars!

This was particularly objectionable as the Mt Gox exchange handled about 70% of all BTC transactions in 2013.

Ethereum and ERC-20: Next Generation Crypto

The next big step in crypto history came in 2015 with the emergence of the Ethereum network.

Now the second most popular digital asset in terms of total market capitalization, the Ethereum network represents a major innovation in crypto technology. What was so revolutionary about Ethereum is that it is less of a “currency” and more of a system on which to build applications. This gives it a potentially unlimited number of potential uses.

Cryptocurrencies launched on the Ethereum network are known as ERC-20 tokens.

The rise of Ethereum also led to other major industry developments, including the rise of decentralized finance and decentralized applications. These technologies have helped generate significant interest in the technology underlying cryptocurrencies, leading to significant institutional investment.

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future of cryptocurrency

Aside from these major developments, the cryptocurrency sector remains an incredibly dynamic, fast-moving space.

While crypto prices have experienced dramatic rises and falls – as seen in Smooth Love Price, for example – this has not slowed growth within the industry.

Despite the many scams that have gripped the crypto sector and the ebb and flow of prices, cryptos have slowly but surely become a global phenomenon. Even celebrities like Kim Kardashian have tried to go into space!

Today, governments around the world are finally coming to the conclusion that cryptocurrencies can potentially be used in the management of their economies, with new regulations being regularly announced. This is in addition to many companies and industries around the world exploring ways to use blockchain technology in their own operations.

Despite bitcoin’s humble history, the cryptocurrency is an idea whose time has finally come.

Brian Carson

Source: www.bing.com

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