There are not many things on the planet that can either be admired or cursed. Bitcoin is “lucky” to be that way. Some consider it the currency of the future, share stories of how they became millionaires overnight, and extol the security of transactions and independence from state control.
What is Bitcoin? The first crypto money on Earth
Bitcoin (BTC) is the first crypto money on Earth (that is, created using the methods of cryptography, a science that develops, among other things, privacy methods). This is an alternative to traditional currency such as dollars.
According to etymology, the term “bit” signifies the smallest unit of information, whereas “coin” simply stands for coin.
However, it should be noted that to compare the “cue ball” with electronic money that is stored on a bank card would be incorrect. By making payments with your regular card, you transfer information about the operation to other banks, your own bank, and the transaction’s recipient as well as the payment system. When it comes to bitcoins, it’s a extremely different case as:
- they are not issued by the state;
- all operations with cyber money are “stored” in a global report – a blockchain or a chain of blocks filled with digital information, in this case, information about bitcoin transactions carried out over a certain time. You can think of it as a log where information about all transactions is added;
- cryptocurrency is not subject to the interests of governments;
- cannot be seen or touched;
- offer complete anonymity: you do not need to know the name and details of the recipient – only the number of his wallet.
In simple terms, this is virtual money with its own rules for making transactions.
The history of bitcoin in facts and figures
Here’s a brief timeline of the project:
2008, August 18 – registration of the bitcoin.org domain (a resource containing information about the military-technical cooperation and its open source software).
2009, January 3 – extraction (mining) of the first block of cybercoins.
January 12, 2009 – test transaction from Satoshi Nakamoto to Hal Finney.
2009, October 9 – the first auction, 1 BTC = $ 1.3.
2010, May 22 – the first purchase of a real product (two pizzas) for ฿ 10,000.
December 2010 – “disappearance” of Satoshi Nakamoto, the mysterious creator of the currency.
2013 – capitalization (the value of all coins in circulation) exceeded $1 billion.
2014-2016 – the first “bitcoin fever”, the rise in value to $20,000.
2017-2018 – Black Tuesday, price drop to $3200.
In November 2021, the cybercurrency reaches a new historical mark of $69,000.
The digital currency created and distributed by cyber idealists confirms its status as a safe means of payment. Its independence from state control frightens governments, but delights ordinary users and investors who are tired of being affected by international and national crises. Nowadays, Bitcoin expands its use with its introduction to new crypto casinos, partnerships with food chains such as Burger King, and much more. One way or another, and despite its shortcomings, Bitcoin is the main contender for the title of “currency of the future”.