A Brief History of Cryptocurrencies

Cryptocurrencies

Cryptocurrency, the word is familiar to almost everyone around the globe. Many people know it by the name bitcoin. However, both are different. Bitcoin is one crypto and there are many like this. However, to be more specific, cryptocurrency is a digital currency that is not regulated or controlled by the government or any other centralized system be it a company or group. If you are a newbie, you may need to know about (bit-trader.io) this platform is designed to help both beginners and trading Veterans.

The beginning

Cryptocurrency was not the name that was created in 1980 but it was the same thing known by a different name,  cyber currency. So, we can assume that the history began here. Back then, several attempts were made to create digital currency in continuous research. 

In 1983, an American programmer named David Chaum released an early version of cryptocurrency as an anonymous electronic money. David Chaum was first who brought the concept of cryptographic in front of the world money by this conference but in a bit different form than today’s cryptocurrency. However, the idea of decentralization and anonymous transactions over the internet was the same.

After that, in 1995,a proto-cryptocurrency named Digicash was created by Chaum using his earlier concept.

The next attempt was found in the year of 1998. Nick Szabo, another programmer, created a version known as Bit Gold. Bit Gold was established that was that clearly resembles today’s bitcoin. Even, the mining process was the same. The users needed to perform computational cryptographic challenges and solvation of the problem used to bring rewards. 

However, as it is a continuous trial, following the development of Bit Gold and its function, bitcoin, the first one that can be the true example of today’s cryptocurrency was created. Satoshi Nakamoto, the name that is still in doubt whether it is a single person or a group of people, brought bitcoin into existence on 3rd January 2009. It was launched in a cryptographic mail by this anonymous persona and the white paper was titled as “Bitcoin – A Peer to Peer Electronic Cash System.” 

2008 – 2010

On August 18, 2008, Satoshi Nakamoto officially started working on the bitcoin project when they bought Bitcoin.org. This was probably the first cryptocurrency that used blockchain technology to form a transparent base network.

Blockchain is a decentralized network and for that reason bitcoin is also decentralized. The network that is known by the name bitcoin is actually a blockchain and it functions the way that a blockchain functions. Blockchain is a series of blocks, as the name suggests. The blocks save all the transactional data that bitcoin users make. It is actually an online ledger where the data are saved as it is with date and time stamped that can’t ever be changed or replaced. Blockchain technology really made the bitcoin network a trustworthy platform for payment. 

However, blockchain is a network that needs to be mined to get spread and thus the bitcoin network started. It was 3rd January 2009 when the first block of bitcoin known as the genesis block which is numbered ‘0’ was mined by Satoshi Nakamoto. This event started the bitcoin network which is still being mined now by its other users. 

2011 – 14

Bitcoin was demonstrating that it has real world value even though it wasn’t yet worth much. It increased in February 2011 before declining. The price of bitcoin started growing at that point. The price of one bitcoin increased from 86 cents to $8.89 between the beginning of April and the end of May. In September 2011, the price of bitcoin had reverted to about $4.77. 

This year, another cryptocurrency Bitcoin was created. And, in a short time, it took the position as the second-largest cryptocurrency by market valuation. 

However, bitcoin values increased substantially throughout 2012, and the Bitcoin Foundation was created in September of that year to support the growth and adoption of Bitcoin. Ripple also came into existence. 

2014 – 17

After bitcoin was introduced, a lot of other cryptocurrencies were developed just like Litecoin. All of them followed the way of bitcoin and utilized blockchain technology and represented themselves as a decentralized network. In 2014, the number of cryptos was around 513 that became 789 in 2017. Some examples are – Tether, Firo, Bitcoin cash, Zcash, XMR, USDT, Cardano, etc.

2017-Till now

After 2017 there was a huge rise in crypto investment. Bitcoin, in 2021 reached its all-time high price that was over $65,000. However, now in 2022, it dropped lower than $20,000. Still, this crypto is considered the most valuable and demanded where Ethereum is the second. 

Conclusion

This is a brief history on cryptocurrencies. With advancement choosing the correct exchange platform also became very important if you take any step toward investing in any of these cryptos.