Bitcoin 101

Bitcoin evolution through the Years

Are you new to the Bitcoin-world?

In this article, you will learn BTC’s Evolution (the Bitcoin evolution) and story and how it works. Bitcoin may be complicated at first, but once you learn it, you may realize it has some amazing opportunities. Read on!

What Is Bitcoin?

Bitcoin is a digital and decentralized currency that runs on the blockchain technology. This means that the currency isn’t connected to a central bank, and it functions through a peer-to-peer network.

A transaction happens anonymously, and the only information you will find is the bitcoin-address used in order to operate the transaction. You will find no personal information through this address, other than previous transactions.

You can spend bitcoins at various companies, such as Subway, Microsoft and other stores and restaurants in the U.S. You can even find Bitcoin ATMs, where you can take out cash or trade cash for bitcoins. However, most users choose to invest in it rather than spending it on daily errands.

Satoshi Nakamoto

Bitcoin was first talked about in August 2008, when the domain name Bitcoin.org was created and registered.

The idea was properly introduced when Satoshi Nakamoto released a paper called “Bitcoin: A peer-to-peer Electronic Cash System”  in October that same year. The name Satoshi Nakamoto is presumed to be a pseudonym for the person, or people, who designed the technology.

It is believed that Nakamoto had nothing to do with the development after 2011. He allegedly told another Bitcoin contributor in 2011, that he (or she) wouldn’t be involved anymore, and wanted to “move to other things”.

There is no confirmed public information of who really invented Bitcoin, but should we believe the rumours, it may have been Craig Steven Wright, an Australian computer scientist, who claims to be the one and have even challenged many at court to prove his creation of Bitcoin.

Bitcoin Evolution

Bitcoin went from being just an idea in a paper, to be the largest decentralized currency in the world in ten years. Although the digital currency has experienced its ups and downs, it has an incredible capability to survive. Here is a brief history of how Bitcoin has evolved throughout the years;

2012

In 2012, Bitcoin was a well-known subject as we experienced the largest Bitcoin theft ever. Around 50 000 BTC were stolen after Linode security upgrade, and people started to debate whether it was safe or not to invest in it.

However, the popularity of the currency kept growing, and in October that same year, 1000 merchants started accepting Bitcoin in their payment processing service.

2013

In 2013, Bitcoin capitalization went passed 1 billion U.S. dollars, and the world’s first Bitcoin ATM was launched in Vancouver. At the end of this year, American game developer Zynga started to support Bitcoin, which resulted in Bitcoin costing 1000 USD.

On the other side, China banned Bitcoin and other uses of cryptocurrencies in the country, which resulted in BTC China, one of the largest exchanges in the world, to close down.

2014

In 2014, some experts started doubting Bitcoin, as its price was falling, and the MT Gox chaos.

Users experienced difficulties withdrawing their funds, and MT Gox blamed technical issues. MT Gox filed for bankruptcy protection in Japan, and claimed that 744 000 bitcoins were stolen.

At the end of the year, a bitcoin was worth half of its price than what it was in January that same year.

2015

2015 was the year Bitcoin went on an uprise, despite the adverse expert predictions from the year before. Bitcoin prices rise led to the founding of Bitcoin (blockchain-related) startups 21, who raised over 116 million USD in venture funding.

At the end of 2015, the Unicode Committee finally adopted the Bitcoin symbol to be in their future version of Unicode standard.

2019

At the start of 2019, digital money market increased by 32%, and experts have seen positive growth in Bitcoin. The Iranian government has also said that they will accept and promote cryptocurrencies.

As you have just read the Bitcoin evolution/history above, you can see that Bitcoin has evolved throughout the years not only in price increase (and decreases sometimes) but also in its tech and usability.

Who knows where Bitcoin will be in a few years? If you want to buy Bitcoin, now is the time, shall we believe the experts.

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coinmag

Kinsley is an MSc student in Information Management and a blockchain consultant. He is a lover of big data with particular interests in disruptive technologies like blockchain technology and Artificial Intelligence.