The cryptocurrency Bitcoin: its history

Every country has its official currency. So there’s no surprise that special money which isn’t tied up to any bank or country appeared in this epoch of globalization and the Internet. Bitcoin changed the rules of the game. But do you know how did Cryptocurrency Bitcoin appear? How did it become popular?

The History of Appearance

It is difficult to say when idea to create this cryptocurrency appeared. It is generally believed that Bitcoin was created in 2008, when a patent application for a cryptocurrency system was filed. Then a document from the authors of the currency about the essence of its distribution was published.

Satoshi Nakamoto is considered to be creator of Bitcoin. It is a fictional character and this information quite corresponds the idea of anonymity and decentralization of the cryptocurrency. Mass-media often publish “sensational” articles about supposedly solving the mystery of the creator of bitcoin. Anyway the identity of the creator is unknown. Many people think that it is a group of the creators.

Сryptocurrency Bitcoin didn’t get broad distribution immediately. Only by 2010 Bitcoin had been used as a form of currency for the first time and just for buying pizza.

Ups and Downs

Gradually Bitcoin became popular. Many people liked the idea of cryptocurrency. The major news agencies began to cover the novelty and it was important to the new currency.

For the first time bitcoin and dollar reached parity in February of 2010 (1 BTC became equal 1 USD). Then bitcoin rate got bigger. The lack of any material provision was a cause of the huge volatility of bitcoin rate. At the time of writing, Bitcoin rate is 2500 USD on average. It is          quite a growth, isn’t it?

However the development of Bitcoin had some difficulties. You shouldn’t forget that bitcoin is a digital currency. Everything may be exposed by the hacker attacks in the Internet. The protection from DDoS-attacks is inserted in the structure of Bitcoin (every ten minutes you can embed a block no more than 1 MB in the blockchain). The attacks were often directed to the large markets and not to the currency itself. The Broker Company was hacked in March of 2013 and loss was equal to 12 thousand USD.

Cryptocurrency Bitcoin had large scandals which harmed its reputation. FBI closed the website “Silk Road” in October of 2013. This website specialized in the buying of drugs with Bitcoin. But it is important to remember that Bitcoin is only an instrument. And only people decide how to use it.

So cryptocurrency Bitcoin has a big history, despite its short existence (from buying of pizza to the most discussed news in the financial sphere).

Predicting future of this currency is very difficult. The only one thing which may be marked – bitcoin rate grows. Apparently the growth of cryptocurrency will continue.

Good luck and high incomes.