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Bitcoin cryptocurrency: A Resultant of Extreme Financial Crisis

20 years back who would have known that a day will come when a digital currency will replace the local currency quite efficiently. 

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Historical Background

The formation and the creation of the Bitcoin cryptocurrency was done for the first time in 2008, but technically speaking this process was complicated and the bitcoin was made for the public use in the year 2009, on 3rd January.

In the year 2019 the Bitcoins have celebrated their 10th birthday. It is now expected that the future of Bitcoin will be very bright. The following paper throws light on the birth of the Bitcoin digital currency.

Developers of Bitcoins

The first person who presented the concept of the Bitcoin cryptocurrency was Satoshi Nakamoto who presented the idea in a Genesis Block. The identity of that person is still unknown. The history of the Bitcoin cryptocurrency goes back to 1998, when the idea of the cryptocurrency  was launched for the very first time. But after that nothing much was done in perspective till Satoshi Nakamoto published his paper in the cryptography mailing. For the very first time Satoshi transected 10 Bitcoins to a person known by the name of Hal Finney.  It is very important for you to know that at this point the bitcoin cryptocurrency was having no worth at all. People were not aware of the significance and value of the Bitcoin digital currency at that time.

Mr. Hanyecz and The Pizzas

 The first proper transfer of the Bitcoin cryptocurrency was made on the 22nd May, 2010 by a person named Hanyecz. To your surprise, he used his bitcoins around 10,000 bitcoins to buy two pizzas. Yes you have read it. At that time the worth of these 10,000 bitcoins was 30 Us dollars. There is no doubt that at this time the worth of those bitcoins will be around millions of dollars. But not to worry, Mr. Hanyecz surely enjoyed his pizza.

Ways of using Bitcoins

Throughout its history bitcoins are usually used in the following 3 ways. Either  it is used by prime investors who buy it. Or by blockchain makers also called miners or in the 3rd case by people who are only here to make money.

Initially e Bitcoin cryptocurrency was created with a philosophy of a platform where people can deal with their own money being their own boss. Bitcoin cryptocurrency has no Central controls and it was designed in such a way that it can function efficiently in a very independent fashion. As already explained that the developer is the creator of the Bitcoin cryptocurrency satoshi nakamoto all of sudden went away from the same in late 2010. He just came, gave the idea, presented Bitcoin cryptocurrency and went away. Initially people had their trust issues related to the credibility and authenticity of the cryptocurrency that’s why the price of the Bitcoin was not that high back then. 

But as the time passed the rate and the price of Bitcoin cryptocurrency kept on increasing up to an extent that in your 2017 Bitcoin broke all the record and reached a prize that was never seen before.

Miracle of Bitcoin

Back in early 2000 no one could have imagined that there will be a time when the traditional currency e will have a competitor in the market. The formation of the Bitcoin cryptocurrency was done after the statement issued by nakamoto. This statement explains that the Bitcoin cryptocurrency will provide a platform to people where they can send and receive digital money without the involvement of any Financial institute or executive like Bank etc. The biggest crypto exchanges in this industry work just like the biggest banks to provide digital currency.

Bitcoin cryptocurrency is a peer-to-peer version of e money that has tremendous use in the digital market nowadays. If you have a phone and you use the internet even if you listen to news on a daily basis you should have to listen to the name Bitcoin cryptocurrency. Even people who are not using the Bitcoin cryptocurrency are curious about the upcoming Trends and recent news related to Bitcoin digital currency.

Trigger of Bitcoins formation

The formation of the Bitcoin cryptocurrency was actually a byproduct of a very severe and huge Bank crisis that occurred in the year 2008. At the time people were very insecure in regards to their money and one not ready to trust any traditional banks or other financial institutes. This is the reason why the concept of electronic money attracted them a lot. They found it pretty amazing that they can get a platform where no third party will be involved in the completion of any transaction or investment process.

Conclusion

Summing up this whole discussion we can state that the Lehman bankruptcy of 2008 contaminated the whole financial system and people ran out of trust and hope in the conventional banking and financing system. People started looking for a new system where they can work independently. Crashing this situation Bitcoin developers came up with the idea of providing people a decentralized electronic cash facility where they can work without the involvement of any third party organisation. As the time passed by this idea got a lot of attention from the general public and here we are saying the Bitcoin cryptocurrency is one of the topmost digital currency of the century till date.

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Guest Author

Crypto Journalist and Editor of guest articles in CoinPedia. Also, Outreach & Partnerships Manager. Contact me: Partner@coinpedia.org

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