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Understanding the History and Formation of Bitcoin

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From Bitcoins’ modest beginnings in 2008 until now, this cryptocurrency has taken the world of investing by storm. In roughly a decade, this highly volatile commodity has done it all with an impressive track record of boom and bust cycles. Here’s what you need to know about the history and formation of bitcoin.

What is Bitcoin?

Bitcoin is a decentralized digital electronic exchange between people. In simpler terms, it is essentially a way of transferring money between persons without the involvement of an intermediatory.

Why Was Bitcoin Created?

Bitcoin was created in an attempt to eliminate the reliance people have on governments and financial institutions to make financial transactions. Without the involvement of a third party or bank, Bitcoin allows users to transact among themselves using apps like bitcoin loophole auto-trading robot.

When did Bitcoin Start?

The idea of Bitcoin first came to the surface during the turmoil of the Great Recession in 2008, due to the growing distrust people had on banks and their part in the financial system. The integration of many existing ideas in the cryptography community resulted in the invention and implementation of Bitcoin by an individual or a group of people, namely, Satoshi Nakamoto.

Thus, on August 18, 2008, Bitcoin.org was registered. In October, the same year, an article with Satoshi Nakamoto as the author was posted to a cryptography mailing list. As a result, on January 3, 2009, the Bitcoin network came alive as Satoshi Nakamoto mined the genesis block of bitcoin or block number 0. A week later, the first financial transaction took place.

The Price History of Bitcoin

Since this cryptocurrency became available, Bitcoin has endured several rallies and crashes due to its volatility as a cryptocurrency. The history of Bitcoin can be depicted as one of tremendous growth punctuated by severe price cuts.

It was only in February 2011, that the $1 threshold price for Bitcoin was surpassed. Four months later, its price skyrocketed to an estimate of $31, only to sink back down to a single-digit range.

Again, in April 2013, the price of Bitcoin reached the $200 milestone and then the further $1000 mark just months later. By 2017, the cost of Bitcoin was around $10,000 and went on to reach maximum highs of roughly $68,000 in November 2021.

The cryptic boom of Bitcoin in 2017 was primarily due to the increase in initial coin offerings where investors were paying a premium to own Bitcoin. However, in the early stages of 2018, the Bitcoin craze was quickly humbled by a drastic fall in the value of coins amid uncertainty, fraud, and lack of belief from the public.

Bitcoin Today

Even though, the crypto-path Bitcoin took was not all that smooth, today, one Bitcoin is worth roughly $37,000. While it is still a long way from its all-time high, it is also a long way from its post-peak bottom of just around $3,000, thus it is a break-even number between its worst and best time stamp.

To this day, the identity of Bitcoins’ creators remains a mystery. No one knows who Satoshi Nakamoto is or was, and because of this, Bitcoin is subject to debate and speculation apart from its price discussion. If you have the time, you should read into the bizarre conspiracy theories people have come up with regarding the anonymous creator.

Bitcoin Tomorrow

There is uncertainty in what lies ahead for Bitcoin, but to remain positive, many people view the future of Bitcoin in a bright and exciting manner. While looking ahead, it is important to remember that no investments are risk-free, and a lesson that can be used going forward is ultimately what goes up, must also come down. Taking Bitcoin’s history into account, the speed of the comedown may be very fast.

What do you think?

Written by JD Hysen

JD Hysen is a fin-tech writer and music critic for Millennial Magazine. As host of The TrueMan Show, he covers all things related to stocks, tech and culture. He's a market analyst by day and a music scout by night, combing venues in search of fresh acts and noteworthy performances.

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