A Brief History of The Cryptocurrencies for Better Understanding

Get two large pizzas for ten thousand bitcoins. Does it sound funny? But this was the first ever transaction involving Bitcoins in real-world noted in history also know information about Bitcoin. 22nd May 2010 is celebrated globally as “Bitcoin Pizza day” as this was the date on which people witnessed the use of bitcoin first time as an alternative to cash. 

Who knew that the same Bitcoin will reach its peak by attaining the price of $69,000 per piece in 11 years down the line? And it showed the world what you can actually get from investing in cryptocurrencies. 

Can you even imagine that the user had to send the bitcoins to a volunteer in England to get those two pizzas? The volunteer made the transatlantic phone call for paying the $30 delivery of the pizza to a programmer based in Florida whose name was Laszlo Hanyecz.

In today’s world, the thirty dollars might not seem like much, but the occasion gave rise to a brand-new class of money: digital currencies, which have the potential to partially replace fiat money.

The concept of cryptocurrency

American cryptographer David Chaum conceived the idea of cryptocurrency in 1983 for the first time. In the conference paper, he outlined the early form of electronic money in anonymous cryptography. 

• The concept aimed to send the currency untraceable to the receiver.
• It also aimed to avoid the involvement of centralized authorities like the banks in the transactions.

Digicash was the first proto-cryptocurrency that Chaum built based on his idea in 1995. The user had to use software to withdraw the funds from the bank and use the particular encrypted keys before sending the fund to the recipient. 

BitGold is the direct precursor of Bitcoin that Nick Szabo designed in 1998. The concept involved the participant solving cryptographic puzzles by dedicating the computer power continuously. If the participant was successful in solving the puzzle, the person got a reward. Once combined with the work of Chaum, it resulted in a very close cryptocurrency resembling Bitcoin. 

But Szabo failed to solve the infamous double-spending problem owing to the possibility of copying and pasting the data. Due to a lack of centralized authority, the problem persisted for a long time. A decade later, a creator going by the alias Satoshi Nakamoto created the ultimate Bitcoin, which launched the cryptocurrency industry. He published the paper “Bitcoin- A Peer to Peer Electronic Cash System.”

Mark the beginning

Modern-day investors can visit www.Bitcoin-Champion.app/es to find out more about the beginning of the world of cryptocurrencies. 31st October 2008 was the day of publishing the Bitcoin white paper. Satoshi Nakamoto described the functions of the Bitcoin blockchain network in the paper.

Satoshi began the formal work on Bitcoins on 18th August 2008. This concept of the white paper created the base for the introduction of cryptocurrencies using blockchain technology.

Satoshi Nakamoto successfully mined the first block of Bitcoin on 3rd January 2009. Of course, it made the headlines as it was a complete contradiction to the conventional finance system. The first block, which is now referred to as the Genesis Block, produced 50 Bitcoins.

Although Bitcoins did not have any value for the first few months after its launch, six months later, the value was somewhere below 14 cents. Around early November, it surged to 36 cents ad settled finally at around 29 cents.

Market formation

2010 to 2014 have been the chief time for the market formation of cryptocurrencies. In February 2011. The value of BTC reached $1.06, for the first time in its history. It came back to 87 cents, but the surge made it the talk of the town.

As people had become more familiar with stock and share trading, the price of BTC started to take off in early April. There was a surge in the price, reaching $8.89. After the publishing of a story on the currency’s potential in an online drug dealing community, the price suddenly tripled to about $27.

And then the journey continued to what it has become today. There has been the introduction of several other cryptocurrencies that have literally opened up a wide horizon to explore opportunities in investment options. 

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