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The idea and a brief history of cryptocurrencies

By Guardian Nigeria
26 December 2021   |   5:20 pm
Cryptocurrencies are a type of digital currency decentralized and not controlled by any government. The history of cryptocurrencies can be traced back to the 1980s, when they were called cyber currencies. These coins started gaining in popularity in 2008 with the introduction of Bitcoin, which was created by an anonymous programmer or group of programmers…

Cryptocurrencies are a type of digital currency decentralized and not controlled by any government. The history of cryptocurrencies can be traced back to the 1980s, when they were called cyber currencies. These coins started gaining in popularity in 2008 with the introduction of Bitcoin, which was created by an anonymous programmer or group of programmers under the name Satoshi Nakamoto.

Since the launch of Bitcoin in 2009, cryptocurrencies have been all the rage. Over the past few years, their popularity has only grown, with more and more people investing in them. But what are they? And where did they come from?

In this post, we’ll take a brief look at the history of cryptocurrencies and how they’ve evolved.

Idea of Cryptocurrencies – 1980s
The cryptocurrency was first mentioned in 1989, and a few years after in 1980, American cryptographer David Chaum invented digital cash, which relied on cryptography to secure and verify transactions. But it was only in the early 1990s that cryptographic protocols and software began to be developed that would make possible the creation of a truly decentralized digital currency. 

In October 2008, a paper by Satoshi Nakamoto (a pseudonym) titled Bitcoin: A Peer-to-Peer Electronic Cash System outlined a system for creating a digital currency that did not require trust in any third party. Nakamoto’s paper effectively launched the cryptocurrency revolution.

The Launch of Bitcoin – 2009
Bitcoin is a cryptocurrency and worldwide payment system. Satoshi Nakamoto created the Bitcoin protocol in 2009, the same year it launched as open-source software. Bitcoin has become increasingly popular with people who need to send money across borders without interference from banks or governments. Still, its rapid rise in value has made it difficult for some people to know what they should do with their Bitcoins.

 
The first Bitcoin transaction took place between Nakamoto and Hal Finney on 12th January, 2009. It wasn’t until February of the following year that someone realized how valuable this new technology could be when one person paid 10,000 Bitcoins for two pizzas delivered by Papa John’s. That transaction would now be worth millions of dollars.

The initial Crypto Market Development
In early 2010, Bitcoin was the only cryptocurrency in the market. At that time, its price was just a few cents. Over the next few years, new digital currencies entered the market, and their prices rose and fell along with Bitcoin’s. 

Throughout this period of volatility, many people lost faith in cryptos as an investment vehicle. However, beginning in late 2017, cryptos began to see unprecedented growth. The total market cap for all cryptocurrencies reached $820 billion in January 2018 before crashing later that month. Despite this crash, the crypto market has seen steady growth throughout.

The Era of Crypto Scams
2017 was the year of cryptocurrency. As the value of Bitcoin and other digital coins skyrocketed, so did the number of schemes and scams targeting crypto investors. From fake initial Coin Offerings (ICOs) to phishing attacks, thieves managed to steal millions of dollars from innocent people looking to make a quick buck in the crypto craze. With regulators aiming for the cryptocurrency world, 2022 will likely see even more scams surface. 

Bitcoin’s Rise To Popularity

Bitcoin has been the subject of many discussions and debates, but it isn’t easy to pinpoint when Bitcoin first became popularized. Many believe that Bitcoin’s rise was in 2017, increasing from $1,000 to $20,000 before crashing back down below $10,000. Others argue that Bitcoin’s popularity skyrocketed due to cryptocurrency exchanges like Coinbase, making it easier for people with limited technical knowledge or experience to trade cryptocurrencies.

Whatever the reason may be, one thing is certain: Bitcoin’s popularity will continue to grow as more people become aware of what it stands for – decentralization and anonymity.

Bottom Line
The cryptocurrency market is booming, and it’s only expected to get bigger. As the digital economy continues to grow at an astronomical rate, cryptocurrencies are sure to play a large role in what makes up our future money system. 

Today, there are many different types of cryptos; some have proven more stable than others while still having promise for growth. Take time this week to learn about these fascinating currencies – visit the bitcoinsystem.app