Bitcoin is a virtual currency that is believed to be the future currency. And today we are glad to share this captivating topic with our readers in this section. The things that are used mostly by many people but are difficult to obtain are used as the currency to do transactions. In the early days, people used salt as a currency because it was not that easy to obtain and so it had a high value.
Soldiers, civil administrators, and other officers were paid using salt. Later paper money came into usage to do transactions and is still in practice because of its high value. But do you know of a currency that is used virtually on the internet and is expected by some to be the future of money? Maybe most of you know it or heard of it, but how many of you the way it originated.
History of Bitcoin (Cryptocurrency)
In 2008, on October 31st, Satoshi Nakamoto designed a complete electronic cash system based on the internet. Usually, the government or banks act as the third party to increase and decrease the money’s value. But it was announced that this electronic cash system doesn’t allow any third party’s interaction, instead, there is only a direct connection between the sender and receiver of the currency.
In 2009 January, the currency system was launched in the name of Bitcoin and was known to be a cryptocurrency. The top programmers and cryptographers identified it to have no-fault and determined it as a safe method. The sender and receiver of Bitcoin are always anonymous because it is indicated in numbers.
Initially, it was rarely used and recognized, and the programmers who worked in Bitcoin were also anonymous. In 2010, the first price increased and the value of a single Bitcoin was from $0.0008 to $0.08. This cryptocurrency was only used as a Bitcoin but it was not used to purchase because it had virtually less worth. But on May 22nd, 2010, for the first time, Bitcoin was used to purchase pizzas by a person called Laszlo Hanyecz using 10000 Bitcoins which is equal to $14.
Although it was accepted by many, it became an official currency when Mt. Gox Tokyo Company exchanged Bitcoin with money, and then it increased the value of Bitcoins. In the later period when WikiLeaks donations were stopped and there were no other ways to support it. People bought Bitcoin to donate to WikiLeaks and that was when the Bitcoins became more famous.
Before there were no misconducts happened online because the sender and the receivers of the money would be easily traced but as a result of Bitcoins, an online market sold drugs and guns online because the Bitcoin-only allowed to view the occurrence of the live transaction and kept the sender and receivers unknown. Cryptocurrency became a need and was accepted by many large companies. In 2016, 1 Bitcoin value increase to $449.33.
In the 21st century, Bitcoin is considered the most revolutionary breakthrough after the internet. And the founder Satoshi Nakamoto is still unknown. Bitcoin is created, distributed, traded, and stored using a decentralized ledger system, known as a blockchain. There will be only 21 million Bitcoins and it can be obtained through mining where they crack codes to solve complex mathematical problems using powerful computer systems. When they solve them they get 1 Bitcoin.
It also can be obtained as an exchange or when them for goods and services. Countries like Australia, Russia, and Japan have accepted Bitcoin as legal while some other countries find it illegal. And it is identified that Bitcoins cannot be banned or pushed away because of the threatening financial power.
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