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Bitcoin entered the world by storm in 2009 as a new digital currency. At first, it was largely overlooked and seen as a ploy that would never take off. As of October 2021, a single bitcoin is worth ￡45,217.15. Though prices are known to fluctuate, Bitcoin continues to perform as the most profitable and popular cryptocurrency to date.
In less than 20 years, Bitcoin overtook the financial industry as a high-value currency with limited regulations and taxation. As bitcoin's popularity took off, other companies began to jump in on the craze, creating the crypto market we are familiar with today. What once existed as a simple digital icon is now used to buy houses, cars, pay off debts, and even gamble. But how did we get here?
For an object to hold value, its value needs to be agreed upon by a large group of people. This was how the original trade and barter system worked, delegating a value of an object agreed upon by two or more individuals. In simple terms, Bitcoin rose to popularity in much the same way. It grew to represent physical cash without a physical form due to popularity, scarcity, and acceptance by many people.
The industry continues to grow and create new forms of digital currencies and objects of value like NFTs. But are these digital currencies good for the financial market, and how do they impact other currency forms? Read on to learn more about how Bitcoin changed the financial industry.
Though Satoshi Nakamoto remains an unknown entity, their idea reinvented how the world looks at currency. Today, Bitcoin and other cryptocurrencies are used everywhere, from stores to the best bitcoin sportsbook sites. Legality, taxation, compatibility and value, however, depends on your area.
Without a centralized entity overseeing the currency, users could trade large quantities of bitcoin with limited regulations through a blockchain. In the beginning, bitcoin could only be earned through a process known as digital mining. Digital mining is the act of a computer solving complex cryptographic problems, which is rewarded with bitcoin upon completion.
In simple terms, once a computer solved a puzzle, it earned the user a bitcoin. However, the time it took to solve the puzzle and how much bitcoin was awarded upon completion, varied.
The first official Bitcoin transaction was made in 2010 when an individual used Bitcoin to buy a pizza worth $25.00 (USD). From then on, what started as an arbitrary bartering token gained real-world value by introducing an improved blockchain and new forms of cryptocurrency. In 2017, it reached a peak value that expanded its popularity and integrated itself as a valid form of accepted currency in a mature market.
The History of Bitcoin
Bitcoin was created in 2008 by a person or group of persons under the name Satoshi Nakamoto. It existed as a currency without a central bank, bought, sold and sent on a peer to peer basis. It’s a decentralized currency, which means you don't have a third party to report to when exchanging the currency. This is a blessing to some and a curse to others.
Though Satoshi Nakamoto remains an unknown entity, their idea reinvented how the world looks at currency. Today, Bitcoin and other cryptocurrencies are used everywhere, from stores to the best bitcoin sportsbook sites. Legality, taxation, compatibility and value, however, depends on your area.
Without a centralized entity overseeing the currency, users could trade large quantities of bitcoin with limited regulations through a blockchain. In the beginning, bitcoin could only be earned through a process known as digital mining. Digital mining is the act of a computer solving complex cryptographic problems, which is rewarded with bitcoin upon completion.
In simple terms, once a computer solved a puzzle, it earned the user a bitcoin. However, the time it took to solve the puzzle and how much bitcoin was awarded upon completion, varied.
The first official Bitcoin transaction was made in 2010 when an individual used Bitcoin to buy a pizza worth $25.00 (USD). From then on, what started as an arbitrary bartering token gained real-world value by introducing an improved blockchain and new forms of cryptocurrency. In 2017, it reached a peak value that expanded its popularity and integrated itself as a valid form of accepted currency in a mature market.