Bitcoin (BTC), released in 2009, changed the way we use money. It made having digital money that doesn’t need third parties possible. Bitcoin disrupted the norm and paved the way for other digital currencies.
It went against regular banking and made people want more freedom and fairness in money. Take a look at how Bitcoin started and helped other cryptocurrencies grow.
The birth of Bitcoin: Who is Satoshi Nakamoto?
Satoshi Nakamoto is the unknown creator of BTC. No one knows who they are. In 2008, Nakamoto shared a paper called ‘Bitcoin: A Peer-to-Peer Electronic Cash System’. It showed how money could work without banks or middlemen.
At that time, no one would’ve thought that the first and only crypto casino sites would be launched in just a few years. The first BTC software came out in January 2009. This marked the start of the cryptocurrency world. Nakamoto mined the first block, called the ‘genesis block’.
This block had a hidden message about a news story on bank bailouts. It also showed why BTC was created. Many tried to find Nakamoto, but their true identity is still a mystery.
Bitcoin’s first transactions
The first recorded Bitcoin transaction happened on May 22, 2010. Programmer Laszlo Hanyecz paid 10,000 BTC for two pizzas from Papa John’s. This event is known as ‘Bitcoin Pizza Day’.
It shows how BTC went from an idea to actual money. At that time, 10,000 BTC was worth about $41. In 2013, someone bought a Tesla Roadster for 91.4 BTC. Comparing it to the pizza’s price in 2010, you can see how much BTC has grown in 3 years.
Road to decentralisation: How Bitcoin defied regular banking?
BTC and other coins work differently from fiat currency. While fiat is controlled by central banks, BTC works on a peer-to-peer network. This means users can send money directly to each other without needing a middleman.
Blockchain keeps track of all BTC transactions. It’s a public record that everyone can see, but no one can change. This way, all transactions are transparent yet safe from fraud and breaches.
This system changes a lot of norms. BTC gives people more control over their money. It also protects privacy, as users don’t need to share personal details to send money. Currently, Bitcoin is limited to 21 million coins, helping to manage inflation.
Mt. Gox fiasco: The rise and fall of the biggest Bitcoin exchange
Mt. Gox was once the biggest Bitcoin exchange, handling over 70% of all Bitcoin trades worldwide. It was launched in 2010 and quickly became popular because it was easy to use. Mt. Gox was believed to be a huge reason why BTC hit off in the early 2010s.
However, its fast growth came with problems. Not even a year after its launch, Mt. Gox faced several hacking attacks. In 2014, they faced the biggest loss of 850,000 BTC, worth about $450 million back then.
This caused BTC prices to go down, as people moved their Bitcoin to safer exchanges. In the same year, Mt. Gox went bankrupt. This caused a lot of panic in the crypto market. At this point, people started pushing for more rules and safety checks.
Silk Road scandal
Silk Road’s shutdown in 2013 caused a bump on BTC’s road again. Silk Road was a marketplace in the dark web, where the purchase of illegal goods thrived. Since Silk Road used BTC as a primary currency, the event sparked talks about BTC being used for illegal activities.
One good thing that came out of it is that more regulations were put into place. These legal checks further cemented BTC and crypto as an industry, leading more people to trust digital coins. While scandals like this caused price drops for a while, the lessons and laws that came as a response made the industry stronger.
The road to mainstream: First major bull run and climb to legitimacy
Bitcoin’s first big price jump happened in late 2013. Its price went from about $13 in January to over $1,100 by December. This big rise caught a lot of media attention and made BTC more well-known. The price jump was caused by more people buying BTC, and more businesses starting to accept it.
As BTC became more popular, big companies started showing interest. In 2014, companies like Overstock.com and Expedia began accepting Bitcoin as payment. This helped make Bitcoin more trusted. Bitcoin exchanges and wallets also made it easier for people to buy, sell, and store BTC.
By 2017, Bitcoin’s price hit over $20,000 in December. This rise was caused by more people trading Bitcoin, media hype, and the launch of BTC futures by big exchanges like the Chicago Mercantile Exchange (CME).
Current challenges: Regulation and the rise of forks
Even with its success, Bitcoin faces challenges that could slow its growth. Governments are still figuring out how to control cryptocurrencies. They want to protect users but also encourage new ideas.
When the rules are unclear, it can cause the market to be unstable. For example, in 2021, when China cracked down on crypto mining and trading, Bitcoin’s price dropped.
Another challenge is the rise of forks, which happens when a coin splits into two chains. This can confuse investors and lower the value of the original coin. For example, the creation of Bitcoin Cash (BCH) caused people to debate about what Bitcoin’s future should be.
Become a part of the thriving Bitcoin world
Bitcoin has changed the global economy, going from a new idea to a well-known asset. Whether you’re an experienced trader or just starting, now is the time to get involved. Engage in the thriving crypto economy by using your coin at gaming sites, gadget stores, or the only crypto casino sites with all the latest features today!
