Bitcoin is a virtual currency that was created by an anonymous programmer or group of developers known by the alias Satoshi Nakamoto in 2009. Until today, his, hers, or their identity isn’t known to the public, and probably we will never know who that person is. But, they did a huge job inventing the Bitcoin, and establishing the bases of the whole crypto market, knowing that all the other developers were initially inspired by the BTC, and then worked on their product. Even though there are thousands of cryptocurrencies right now, we can say that Bitcoins are the same as gold is for the traditional finance systems. Since it was launched, Bitcoin has become a synonym for the term ‘crypto,’ and this innovation proved to be a viable alternative to traditional currencies. But, is that happening right now, more than a decade after the invention? We can say that there are some changes in how we observe money.
But Bitcoin was all but an overnight success. It took years to find loyal supporters that promoted the benefits of the cryptocurrency, and eventually, as Bitcoin’s value has increased, the number of crypto owners also increased. Let’s take a look at how the cryptocurrency achieved its success and what are the crucial factors that promoted its growth.
The Birth of Blockchain Technology
The blockchain network was created in times of crisis, more specifically during the financial crisis in 2008. The trust in the traditional financial institution and the governments was diminishing, and the idea for decentralized digital cash was appealing to the developers that worked on the design of the blockchain network and the development of Bitcoin.
Based on the white paper about Bitcoin, we have found out that this peer-to-peer-based payment system was created in order to allow for online transactions to move from one party to another without relying upon the approval or supervision of financial institutions.
What’s more, it provides complete anonymity to the parties that are involved in the blockchain network. Other advantages provided by this network include a block reward for the miners who work to keep the network secure and also approve the BTC transactions to make sure they are valid through Bitcoin mining.
First Commercial Transaction and Online Trading
In the beginning, not many people were even nearly familiar with the benefits provided by the blockchain network and Bitcoin; hence the members exchanged BTC for commenting on the Bitcointalk forum, or they made simple transactions with each other. However, there wasn’t a first commercial transaction noted in the network until Laszlo Hanyecz, a developer who worked on the blockchain network, bought two pizzas in exchange for BTC. This was the first notable commercial transaction.
Afterward, many online exchange sites followed, and today there are numerous online trading sites where BTC can be bought, traded for other currencies, or sold.
Namely, you can also find automated trading sites like the Bitcoin Equaliser app that automatically completes the complex trading process for you. Furthermore, you are able to trade on the move whenever is convenient for you, while the automated trading software is based on Artificial Intelligence technology and is able to conduct trading much faster than manual trading. You can register on the site by depositing at least $250.
The Surge of Popularity of Bitcoin
The blockchain network was designed to provide benefits for the users, and it was also created to control the inflation rate of BTC. Over time Bitcoin’s price continued to grow, and it went from a couple of cents in the beginning to a price of over $60,000 per one Bitcoin in 2021.
Bitcoin halving is one of the protocols that is a major factor in the growth of Bitcoin’s value. Satoshi Nakamoto programmed Bitcoin halving to happen after 210,000 blocks are added to the network. After this happens, the block reward is cut in half for the miners.
This means that the current number of BTC is also cut in half, and the supply is not increasing at the same pace as the demand. Actually, there is a limited supply of BTC of 21 million Bitcoin tokens from the beginning, and by 2021, 80% of the total number of BTC was mined. In addition, the new institutional demand for Bitcoin is also a notable factor behind the constant rise of Bitcoin’s price.
How things are going today?
The beginning of 2021 was really promising for the most popular cryptocurrency in the world. We all remember that in 2020 when the pandemic was declared by the WHO, the BTC’s rates were going down, and their existence was questionable (as it was the whole situation in the world). But, in May 2020, there was an important event in the crypto world, named Bitcoin halving, which is an action of preventing inflation.
We all remember that day in April this year when its value went over $63,000 for one Bitcoin. Today, in June, it’s about $36,000 for one BTC. So, what can we say about this market? It’s pretty unpredictable, and we don’t know how long the prices will be stable. Things can change while we are sleeping, and according to some experts, one day we can wake up in the morning and there will be no Bitcoins available. Yes, that’s one of the possible scenarios. We all know that when something is too interesting and attracts all the attention, it can easily become too boring for ordinary people. And the values depend on their interest and their wish to invest.
Many crypto experts consider Bitcoin and all the things that come together with it as a soap bubble, that can easily pop, without any proof that these coins ever existed.
They are a very popular topic on the internet
You can find plenty of blogs and articles dedicated to this particular cryptocurrency, but also for others too. Website owners are paying large amounts to the writers, so they can always have fresh and quality content related to it. People on social media are also talking about Bitcoin a lot. The good thing is that this topic is always well-researched and covered, but becoming a part of that market is still tricky and brings a lot of unpredictable situations and risks.
Anyway, as long as it exists, it will be a popular conversation topic among the people, especially those who are brave enough to try new things and give a chance to new financial systems. Hopefully, one day we will able to complete transactions worldwide within a few minutes, with low or no fees, and the money will be available for withdrawal the very same day. Until that happens, we can only wait to see how things will go in the future. Who knows, maybe one day a completely different cryptocurrency will take over the throne and become even bigger than Bitcoin is now.