The History of Bitcoin

In the world of currency and forex, the core credentials of what makes up the market seldom changes. However, in 2008 a brand new currency arrived in the form of bitcoin, with this cryptocurrency certainly working to upset the apple cart. Widely considered to be the most volatile currency in the world, during 2015 over 100,000 bitcoin based transactions took place, which shows that usage levels of the cryptocurrency is growing. Considering how the commodity is maturing, many sectors (including retail and gambling) are now warming up to the idea of adopting bitcoin. Looking back through time it is clear that this cryptocurrency has been on quite the journey, with the following taking an in-depth look at the rich history of bitcoin.

The History of Bitcoin

The foundations of bitcoin were created all the way back in 2008, when three men came together to create and eventually patent a new form of digital encryption. Taking this base, Satoshi Nakamoto would go on to create the cryptocurrency we know today as bitcoin. This vision was one of true digital innovation, something that had the potential to create a currency that was strictly electronic in execution. Working off of a mining system, the very first block of currency created was dubbed “Genesis”. Just a few weeks later the first bitcoin transaction would take place between Nakamoto and Hal Finney, a noted cryptographic activist and program developer. In 2009, bitcoin would become a more legitimate currency in the eyes of many, as the New Liberty Standard gave it comparable value to other global currencies.

2010 would prove to be arguably the biggest year in bitcoin history as far as foundation building is concerned. This is because from beginning to end the cryptocurrency would make major headlines. During February the very first bitcoin market in launched in the form of ‘Dwdollar’, with the first mainstream transactions starting to take place in May. Sadly, while 2010 would be a groundbreaking year for the cryptocurrency, it would also show that the format had frailties. In August 2010 bitcoin would become the victim of a major security breach, exposing bitcoin’s security flaws. As more and more people raised concerns about how bitcoin would be used, to make matters worse just a few weeks late the commodity would be hacked yet again. It was only after this second hack that measures were taken to increase security and put bitcoin back on the right track.  Fast forward to 2013 bitcoin is on the brink of its first a major boom, a boom that would make it a viable currency format in every sense of the word. The bitcoin market capitalisation value reached a staggering $1 billion, with the US Financial Crimes Enforcement Network (FINCEN) also issuing guidance surrounding how bitcoin should be regulated.

The journey of bitcoin has been both long and tumultuous, to the point where many didn’t know if it would survive until 2015. While the controversial nature of the cryptocurrency is clear, its position in today’s financial world certainly can’t be denied.

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

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