Bitcoin was dropped onto the human race in 2008. Nobody could see it coming. No one could imagine what Bitcoin would turn out to be, what to do with it, or if it at all had any value. It has been 13 years since, and Bitcoin has caused quite a few uproars by this time. It has broken existing structures and formed some new ones. It has taken its own time to unfurl its potential. Let us see how it has managed to come so far.
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How did it all start?
The concept of Bitcoin was first introduced in October, 2008 when Satoshi Nakamoto, who would later go on to be the discoverer of Bitcoin, dropped a letter with a cryptographic message with the title, “Bitcoin P2P e-cash paper.” Eventually, people learnt about the existence of Bitcoin as a Cryptocurrency. Nakamoto laid out the concept of Bitcoin out in the open. Bitcoin was always supposed to be the decentralized currency that it exists as right now. It functions with the help of Blockchain Technology which keeps the records of transactions and the other information regarding it secure in the blocks of the public ledger.
It was in January, 2009 when the first block Genesis was mined and the blockchain was launched. Initially, only the miners could mine Bitcoins and bring them into existence. After they started existing in quite some numbers, trading and buying of Bitcoins began.
Around this time, Bitcoin had barely any value attached to it. The miners mined it, discovered it, and kept it to themselves. There was not too much anticipation surrounding the concept of Bitcoins. Since it did not take much cost to mine the Bitcoins, the miners had nothing to worry about. Mining only took solving a few complex mathematical problems and the miner received a Bitcoin or more.
Value of Bitcoin
For more than a year, Bitcoin had no value attached to it. It was for the first time on 22 May, 2010, when Bitcoin was used to buy Papa John’s Pizzas. 10,000 Bitcoins were given away for a bill of $25. That was then, and today, 10,000 Bitcoins would be valued at $114 million. However, since this was the beginning of Bitcoin holding any value at all, this day is known as Pizza Day by all the Bitcoin fraternity.
The value of Bitcoin was regulated by the people who possessed it. As and when the number of people possessing Bitcoins went up, the value started depending upon a lot of people instead of just a few. Hence, it saw a steady increase in value.
With only a handful people being responsible for the value of Bitcoin, it was also bartered with other goods and services, and was open to negotiations. At this point in time, Bitcoin had no fixed value. It was randomly decided.
As the number of Bitcoin users increased, people started taking it seriously. The developers came up with other cryptocurrencies like Ethereum and Litecoin. This got many others interested in the concept of Cryptocurrency and its decentralized status. This popularity made Bitcoin an asset and a currency. People started investing in trade btc.
Present Scenario
The same Bitcoin that had just crossed the threshold of $1 in terms of its own value in February, 2011 has been estimated to be more than $10,000 even with a raging pandemic. It has seen substantial highs and lows. Its value has, however, only steadily increased. Towards the middle of December 2017, Bitcoin hit its highest value so far, estimated at $19, 650.
Bitcoins are being recognized by certain nations as legitimate. It seems like a better tomorrow. Bitcoin as a Cryptocurrency still has enough scope. Even Blockchain Technology is making rounds in other industries. Bitcoin is yet to fully realise its potential. One cannot tell what turn the Cryptocurrency Market will take the very next moment.
