The Journey of Bitcoin: The Rise and Fall Since Inception

The rapid predisposition of the human population towards technology has introduced online access to all daily goods and services. These services span across the world we live in and are alienated into a variety of sectors. Fashion design, automobile, gadgets, home décor, and Banking are just tiny droplets of the large ocean that is the Internet. The sector of commerce has come to rely on colossal financial institutions for aid, and thus begins the chapter of debate. The online payment methods bring a solution to the challenge of the hard-cash exchange, but it is not steadfast due to the presence of offenders and enforces the problem of complete non-reversible transactions as well. On November 1, 2008, Satoshi Nakamoto brought in front, a research paper to an unstipulated cryptographic project of a currency called Bitcoin.

What is Bitcoin?

A Bitcoin is a peer to the peer payment system which was brought into parity in 2009 as open-source software. This digital currency uses cryptography to control the construction and handover of money. There is certain personnel known as miners who are accountable for timestamp transactions into a collective public database called a blockchain when employers send payments through digitally signed messages to the amalgamated network.

 

How is Bitcoin made?

bitcoin-mining

 

 

 

 

 

 

 

 

Miners subsidize to the economy of bitcoin through its adapted computer. It runs through an algorithm that brings about new bitcoins into the network in an immovable time interval. The time increments are short of guaranteeing unvarying growth without any interference of a third party such as the government.

 

How is it spent?

Bitcoin generates a bid which is obligatory to devote the produced currency. The process of expenditure of a bitcoin is as informal as conveyance a text message to your peer. Bitcoin is seen to be the future substitute for payment methods such as Paypal. The alien concept of Bitcoin was brought through this pseudonymous temperament and reformed the course of transactions for future generations to come.

 

The Beginning of Bitcoin

Bitcoin was just about rubbish to the unaware public in its introductory stage. In the starting six months from 2009 to 2010, bitcoin was adjacent to a nonentity, with a value preceding 14 cents. The summer of 2010, however, brought new hope as the concept of bitcoin went viral on online and offline platforms. The prices on the online exchanges started to move, and by November, the value trekked up to 36 cents and finally established down to 29 cents. The summer of 2010 also brought the first recorded acquisition of bitcoin. Laszlo Hanyecz instigated a trade of 10,000 bitcoins in exchange for two Papa John’s pizzas valued at $25.

The moment of awakening for bitcoin was the freshly uploaded article on the Forbes magazine relating to “Crypto Currency.” It was a catalyst that strolled its value from 86 cents to $8.89. The published story by Gawker on June 1 about the popularity of bitcoin among online drug dealers, boosted its value and went on to $27. The market value reached close to $130 million. The cost of the 10,000 bitcoins sold to buy pizzas had ascended to a whopping $272,329. With the increase in popularity, the value of bitcoin was turning around, and more population was attracted to its complexity and design.

 

Bitcoin in 2011

Bitcoin shattered the monetary marketplace and sanctioned internet business worldwide. It was evident that other cryptocurrencies were assured to strive. The Electronic Frontier Foundation was a non-profit-making organization that started to accept Bitcoin in January 2011 and stopped accepting them in June 2011, quoting the apprehensions about a lack of legal instance about new currency systems and was later overturned in May 2013. The Twitter circle fetched in new users incrementing admiration and custom. It was around this time when magazine giants TIME commenced to write about this new cryptocurrency. Wikileaks was another ambassador that started to admit donations through the same.

The acuity of bitcoin was supposed to the anonymous transfer of currency without any erstwhile “double- spending”. The major puncture of the year happened on June 13 and is mentioned as the first burglary in the history of bitcoin worth 375 thousand USD. This leads to a thread of attacks on the stream with a comparable hacking attack of counterfeit currencies on the MtGox’s database. The names, hashes, and emails of 60 thousand users are stolen. This led to a downfall of value from 17.5 USD per 1 coin to 1 cent per coin. It was the biggest bitcoin crashes in history.

The progress didn’t halt and the first mobile app, “Bitcoins Mobile” was launched on July 22, 2011, followed by the first cryptocurrency conference in Europe, in Prague.

 

Bitcoin in 2012

The 2012 progress for bitcoin was somewhat judicious with the climax of bitcoin as the foremost theme in the CBS legal drama “The Good Wife” in the third season episode “Bitcoin for Dummies”. The chief gaffe of the year was the 50000 whipped BTC after a security upgrade in Linode estimated as the biggest bitcoin burglary ever. Over 1000 merchants counting WordPress started to receive bitcoin as their payment dispensation provision.

 

Bitcoin in 2013

Bitpay encountered a surprising growth by surpassing 10,000 transactions and the global bitcoin capitalization surpasses 1 billion USD. With new sorts of bitcoin client seeming, the industry took a giant leap by the inauguration of a new-fangled mission in Kenya concerning bitcoin with M-Pesa, a mobile payments system, in a trial designed to offshoot pioneering outgoings in Africa.

The popularity of Bitcoin also raised questions on its steadfastness and context. The Foreign Exchange Administration and Policy Department in Thailand stated that bitcoin lacks any legal framework and would, therefore, be illegal, which efficiently debarred the trading of bitcoin exchanges in the nation. Countries like Norway and China followed through as well. Bitcoin is a nameless exchange mechanism, flooded the drug market with customers and effectively the FBI confiscated roughly 26,000 BTC from the website Silk Road and arrested the suspected owner Ross William Ulbricht. For the first time in history, Bitcoin costs over 1000 USD after BTC is buoyed by the American game creator Zynga.

 

Bitcoin in 2014

The first protuberant bitcoin exchanges, Tokyo-based Mt.Gox filed for bankruptcy after hundreds of thousands of bitcoins worth millions of dollars went missing in an ostensible hack. The Winklevoss twins, who were primary bitcoin promoters, were amid the stockholders who lost possessions when the discussion collapsed. This year supervened some of the perilous contingencies in the history of bitcoin. Some minor and major friction was tempted in the course wherein the Vice- President of the Bitcoin Foundation was detained under money laundering charges. A minor hiccup in the outgrowing currency platform, bitcoin found new partners such as Newegg, Dell, and Microsoft which instigated to accept bitcoin to buy Xbox games and Windows software.

 

Bitcoin in 2015

Bitcoin under its introductory building phases ached a large number of terrorizations from individual hackers and organizations. After a year of breakdown by Mt.Gox, the United Kingdom-based argument Bitstamp publicized that their exchange would be taken down while they scrutinize a hack which resulted in about 19,000 bitcoins being pilfered from their hot wallet. It was around this time when Ulbricht was tested guilt-ridden on 7 charges of money laundering, computer hacking, and drug collusion because of his head part at the silk road market. November 2015 marked a momentous day for the bitcoin community as the Unicode Committee accepted bitcoin currency symbol anticipated to be the forthcoming sort of the Unicode Standard.

 

Bitcoin in 2016

The development of the market of bitcoin was under course at this time with the network speed above 1 exahash/sec. Moreover, the cabinet of Japan accepted these coins as payment means like real money. Large organizations like Uber and Steam services started to accept bitcoin as a payment method. The number of bitcoin ATMs had creased over the last 18 months and grasped 771 ATMs worldwide.

 

Bitcoin in 2017

BTC/USD Chart
BTC/USD Chart

The year 2017 was important for the value of bitcoin. Bitcoin price was less than $3000 at the beginning of 2017, hiked to $5000, $10,000 and even nearly $20,000 and by the end of the year. Countries like Japan, Russia, and Norway started to accept bitcoin as a legal-based transaction system. This new ratification of bitcoin was rather odd to understand for other countries due to the unpredictable effects it has on the economy and the pseudo behavior of the websites it was part of. The browser such as Tor was used to access what was known as the Deep Web which was claimed to contain almost 97% of the data of the internet. It gave rise to a rather dark circle of trade wherein you can order a rifle, drugs or even a hitman to your aid with absolute anonymous addresses and payment methods.

 

Bitcoin in 2018

The year 2018 has been a rough year for bitcoin users as they were eagerly expecting a steady rise in the value of bitcoin. But with the declining rate of bitcoin, many users decided to sell away their assets before bankruptcy. One of the reasons for this decline was when Coinmarketcap decided to eradicate prices from South Korea interactions from its cryptocurrency clearances without warning, which led to a sharp drop in all prices. Bitcoin’s price dropped 50 percent in 16 days, falling below $7000. This year marked the hindering and exponential drop of bitcoin price with BTC falling under $4000 At the end of the year.

 

Bitcoin in 2019

BTC/USD Chart
BTC/USD Chart

The summer of 2019 brought a glimmer of sunshine for the market with the increase of the digital currency market by 32%- a total of $165 billion. The Iranian government decided to accept and endorse the business. The price of bitcoin has been increasing since then and has crossed the $10,000 spot this June, Currently trading at $11372 (at the time of publishing).

 

The journey of the cryptocurrency has gone through a lot of ups and downs with people engaging and incurring a subsequent amount of loss and profit along the way. Some might argue that this method of payment is bringing an uprise to the world of drugs and terrorism, while some may agree that this is the future of the human race. With Paypal, one of the safest and most preferred payment modes on the planet, dealing with an adequate amount of interest doesn’t seem feasible to the population in general.

The varying amount of changes brought by bitcoin circle has definitely left a mark for the future generations to ponder and enclose the degree of impact it has brought in the society. The complete statistics of the rise and fall of bitcoin are known yet they fluctuate in an abrupt demeanor and has yet to leave a mark that will change the course of online transactions forever.

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Vineet Chaudhary
Vineet Chaudhary
Vineet Chaudhary is a content writer with computer applications as his background field. His interests range from writing and photography to going out for trips and rides on weekends.

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