There aren’t many things on the planet that can be admired or cursed. Bitcoin is “lucky” to be like this. Some see it as the currency of the future, recount how they became overnight millionaires and extol the security of transactions and independence from state control.
What is bitcoin? The first cryptocurrency on Earth
Bitcoin (BTC) is the first cryptographic currency on Earth (that is, created using the methods of cryptography, a science that develops, among other things, privacy methods). It is an alternative to traditional currency like the dollar.
According to the etymology, the term “bit” means the smallest unit of information, while “coin” simply means coin.
However, it should be noted that comparing the “white ball” with electronic money that is stored on a bank card would be incorrect. By making payments with your usual card, you transfer information about the operation to other banks, to your own bank, to the recipient of the transaction as well as to the payment system. With regard to bitcoins, it is an extremely different case because:
- they are not issued by the state;
- all operations with electronic money are “stored” in a global report – a blockchain or block chain filled with digital information, in this case, information about bitcoin transactions carried out over a certain period of time. You can think of it as a log in which information about all transactions is added;
- cryptocurrency is not subject to the interests of governments;
- cannot be seen or touched;
- offer complete anonymity: you don’t need to know the recipient’s name and contact details – only their wallet number.
Simply put, it is virtual money with its own rules for making transactions.
The history of bitcoin in facts and figures
Here is a brief timeline of the project:
2008, August 18 – domain registration bitcoin.org (a resource with information about military-technical cooperation and its open source software).
2009, January 3 – extraction (mining) of the first block of cybercoins.
January 12, 2009 – test transaction from Satoshi Nakamoto to Hal Finney.
2009, October 9 – the first bid, 1 BTC = $1.3.
2010, May 22 – the first purchase of a real product (two pizzas) for 10,000 ฿.
December 2010 – “disappearance” of Satoshi Nakamoto, the mysterious creator of the currency.
2013 – capitalization (the value of all coins in circulation) has exceeded $1 billion.
2014-2016 – the first “bitcoin fever”, the rise in value to $20,000.
2017-2018 – Black Tuesday, price drop to $3200.
In November 2021cybercurrency hits new all-time high of $69,000.
The digital currency created and distributed by cyber idealists confirms its status as a safe means of payment. Its independence from state control frightens governments, but delights ordinary users and investors who are tired of being affected by international and domestic crises. Nowadays, Bitcoin is expanding its use with its introduction to new crypto casinos, partnerships with food chains such as Burger King, and much more. One way or another, and despite its flaws, Bitcoin is the main contender for the title of “currency of the future”.