The birth of any new idea is often accompanied by a feeling of elation and amazement. The same goes for the birth of a revolution as well.
In the case of Bitcoin, the birth was in the year 2008 when an anonymous programmer or group of programmers using the pseudonym Satoshi Nakamoto published a whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System.
At that time, the digital currency was not anything but a mere idea used by banks to process transactions without the customer ever knowing about it. After almost nine years since its publication and despite many challenges along the way, Bitcoin is here to stay.
It has become one of the most trusted and valuable cryptocurrencies on the market today. Let’s take a look at how this revolutionary idea came into existence and what impact it has had so far on our world.
How Bitcoin Work?
Bitcoin is a digital asset that can be transferred between two parties, merchant or consumer, without going through a third party like a bank or credit card processor. This digital asset functions independently from any government or central bank and is not managed by anyone else.
It is created by computer software and is therefore known as a cryptocurrency. The way these digital asset works is simple. Let’s say Alice wants to send some amount of money to Bob.
First, she will have to purchase some amount of bitcoin from a vendor or exchange service. From there, she will transfer this bitcoin to Bob’s wallet address. This wallet address is a unique code that is found only in Bob’s possession.
Once this has been done, everything looks like a normal cash transaction between two individuals as there is no bank or third party involved in this transaction.
History of Bitcoin
As mentioned earlier, the first ever Bitcoin was released in 2009 by an anonymous author under the pseudonym Satoshi Nakamoto. Since then, this cryptocurrency has experienced a tumultuous journey which we will now discuss in detail.
Bitcoin once reached a high of $63,783 in the year 2021. At this point, the market had expanded exponentially and was earning hundreds of millions of dollars in revenue by processing transactions. This high valuation was possible because Bitcoin was still in its infancy stage and transactions were relatively low.
This meant there was low competition in the market and any improvement in the technology could lead to a near monopoly of the market. However, the high valuation came to an end when a significant number of vendors started accepting credit cards due to the low transaction fees that they were charged.
Conclusion
The birth of Bitcoin lies in the idea of decentralization, something that is very important in our modern world. Decentralization is the idea that centralization of power is a very dangerous thing and should not be allowed.
The birth of Bitcoin is a great example of the usefulness of decentralization. It has been tested for many years now and is still going strong. Bitcoin is currently being used as a medium of exchange in both online and in-person transactions.
It has also attracted a large number of investors and is expected to continue growing in the future. It is one of the most trusted and valuable cryptocurrencies in the market today.
