Bitcoin - Here’s the history of the first cryptocurrency

November 29, 2018 Quick read

Modern day economics is based on how a government issued currency is used. There are certain rules and regulations that banks, financial institutions and other individuals and entities need to follow when dealing with government issued currency. Theoretically this currency is based on the value of gold- meaning that you can exchange your currency for gold if needed. However, most governments print more money than needed to cover up all the expenses of the government. This many a times results in the decrease in the value of the currency.

What’s different with cryptocurrencies

With cryptocurrencies however, this isn’t the case. Each cryptocurrency has an equal intrinsic value, no matter wherever it has been bought from. This is because cryptocurrencies are ‘mined’ using complex algorithms which releases ‘blocks’ of coins which you can win after solving math problems.

The first cryptocurrency that was introduced with this intrinsic value was Bitcoin, this was about a decade ago in 2009. Bitcoin was created by a rather reclusive and mysterious person( or a group of persons) called Satoshi Nakamoto.  The first mining of Bitcoin began on the 8th of January 2009. Till date, no one knows who the real Satoshi Nakamoto actually is. However, the popularity of Bitcoin has been gathering pace ever since it was launched.

How is Bitcoin used?

Bitcoin’s intrinsic value means that it can be used as both a commodity as well as a medium of exchange. Over time, there have been many places which have allowed for the use of Bitcoin to pay for goods and services.  These include computer giant Dell, airline airBaltic, Expedia and Cheapair, among others, besides a few and growing number of small businesses who are also accepting Bitcoin.

There are many benefits of accepting Bitcoin as a payment method, primarily you can accept Bitcoin as it is independent of government regulation and there is no inflation associated with it.

Due to this decentralised nature of Bitcoin,where no government regulates it, many people see it as a good place to park money as an investment. Investors can simply Buy Bitcoin from Online Bitcoin Exchanges and stay invested while the money appreciates in value.

When the value of Bitcoin increased to its peak in 2017, the world stood up and took notice. This was a time when people really started to be interested in cryptocurrencies and how they can be the future of trading and commerce in our world. Though the value of Buying Bitcoin Online has decreased since then, an increasing number of people are still getting interested in investing in this new form of currency.

The future of Bitcoin and other cryptocurrency looks bright. Due to an absence of regulation, they can be bought and sold freely over the internet without any restrictions and with minimal transaction costs. This is a far cry from the various complex costs associated with transferring fiat currencies from one country to another, not to mention converting the currency at  the country of origin.

There will be a time when fiat currencies may be on the decline, and cryptocurrencies like Bitcoin will be universally accepted due to its relative ease in operations. Let us hope that this time comes sooner than anticipated.