Cryptocurrencies & Bitcoin History: How It All Began?

Unless you’re living under a rock, you must have heard about cryptocurrencies before. Simply put, they’re digital currencies used for completing a wide range of transactions online. The history of digital money started some years ago. Since Bitcoin is the first and most popular cryptocurrency in the world, we cannot talk about the history of digital money without mentioning it.

In this post, we will explain how it all began in the world of digital currencies.

The story before Bitcoin

Bitcoin kicked off the acceptance of cryptocurrency around the globe, but the concept of digital money preceded it. A computer engineer named Wei Dai was the first individual to talk about it. In his 1998 paper, he talked about B-money, the digital money that could be transferred from one person to another through certain untraceable digital elements. Nick Szabo, a blockchain expert, also tried to introduce a similar concept known as Bit Gold. The idea focused on having a decentralized currency that won’t rely on the inefficient traditional banking system. Unfortunately, both ideas didn’t see the light of day because it was difficult to find a way to prevent people from creating counterfeits. However, they were believed to be part of the things that birthed Bitcoin in the following decade.

The introduction of Bitcoin

The idea of creating digital currency finally became a reality in 2009 when Bitcoin was created and introduced to the public. This coincided with the period of financial hostility in the USA. Between 2007 and 2009, financial institutions in the US had challenges as many customers couldn’t trust them with their hard-earned money. Many viewed Bitcoin as a more reliable alternative to the untrusted traditional financial system.

The first digital coin was created and posted by an individual or a group of individuals called Satoshi Nakamoto. This pseudonym has continued to be a major subject of decades for the last few years as many people have come to claim identity. However, no one has been able to show proof. The official launch of Bitcoin took place on Jan 3, 2009 when its first block was made. Over the next seven months, about 1.1 million Bitcoins were mined. lthough the mined digital coins were worth almost nothing then, their value is now about $20 billion.

The beginning of the crypto market

For some weeks after its creation, Bitcoin (BTC) wasn’t available in the market. Nevertheless, the story changed in March 2010 when the now-defunct Bitcoinmarket.com listed the new coin. After four months, Mt.Gox also joined in listing Bitcoin; thus, becoming the second crypto exchange platform in the world. Many more exchanges have joined the market as the need for cryptocurrency payment increases.

In February 2011, Bitcoin was valued to be worth 1 USD. At this stage, it became obvious cryptocurrency would be a reality that could change the world of finance. Before the end of 2013, several other digital currencies were created and introduced by various individuals and groups to rival Bitcoin. Some of the popular cryptocurrencies available today include Tether (USDT), Ethereum (ETH), Dogecoin (DOGE), Solana (SOL), Cardano (ADA), and Ripple (XRP).

Despite the stiff competition, Bitcoin continued to soar in its early years. Its visibility, price, and popularity spiked several times during the following years. The price of the digital coin increased to around $1,000 at the end of 2013. A single coin was worth about $10,000 in November 2017, and the price almost doubled by the end of December 2017.

Recent happenings in the crypto market

Bitcoin and other digital currencies have experienced so many ups and downs. Besides, lots of crypto exchanges have opened and closed over the last few years. One of the most notable happenings was the rise in the price of Bitcoin to almost $69,000 in November 2021. During this period, many individuals and groups hopped into cryptocurrency investment.

However, the spike only lasted for a short time as everything changed at the beginning of 2022. In response to constant inflation, the US Federal Reserve became more hostile to crypto and risky assets. Consequently, many individuals sold off their assets, leading to a significant fall in the prices of Bitcoin and other digital coins. At the beginning of December 2022, Bitcoin was barely worth more than $17,000.

While Bitcoin and other cryptocurrencies may not be at their best levels at the moment, history has shown that they can be more relevant in the future.