History of the crypto
7 min reading
Explore the origin and the history of crypto-currency development!
History of the crypto
The history of cryptocurrency has begun with the launching of bitcoin and is used in various spheres of economic and daily life. In order to assess the cryptocurrency perspectives, we need to explore its digital nature, history of occurrence, and how it develops during the years. Thus, in the article, we will consider why the crypto occurred and what circumstances had led to it.
What is cryptocurrency?
To find the answer to the question, we should determine what is the notion of cryptocurrency. Cryptocurrency is the type of asset that is based on blockchain technology and has a digital nature. It is encrypted information that cannot be copied or falsified. It exists only on the Internet and is not stored anywhere, except the so-called crypto wallets (the devices or software, that give you access to your cryptos). Important to know, that the cryptocurrency is decentralized and no one can guarantee its stable price rates. After the successful launch of bitcoin, many new cryptocurrency projects have begun to develop. At first, digital coins gained popularity among crypto enthusiasts. But more and more common observers became interested in bitcoin after it reached its all-time high. The price rates of the first crypto coin fell several times, but they always rose, breaking previous records.
Specifics of the crypto market
The crypto market is so volatile that it can change in just a few hours. Therefore, it is important to understand the factors behind cryptocurrencies and how they help us to predict price movements. Many see the media as an effective means of manipulating the public. Besides, this factor is relevant mainly for short-term forecasts. News is distinguished by the type of sources: political and systemic. There is also the fear factor. Opinion leaders often control the market through doubt, uncertainty, and fear of missed opportunities.
The behavior of financial enthusiasts is a common cause of the rise and fall of cryptocurrencies. New platforms, growing investor interest, and the deployment of innovative features have a positive effect on long-term rate growth. The expansion of the bitcoin market is built on confronting traditional economic factors. Also, if there is a public interest, cryptocurrencies will rise with it along with security concerns. System hacks, exchange closures, and hacking attacks are unpredictable things.A single bug in the code can rob thousands of cryptocurrency owners and cause a market crash.
Bitcoin began its history in early 2009. Satoshi Nakamoto was the creator of the first cryptocurrency in the world. The coin price at this time was only 8 cents, so various companies and common investors were just getting started with Bitcoin, providing it with multiple growths in the future. At first, a small group of people knew about bitcoin, but it became more popular after the creation of Bitcointalk, a specialized forum for crypto enthusiasts. It was the turning point and the rate started growing.
In 2010, a serious vulnerability was discovered in the Bitcoin protocol: transactions were not properly verified before being added to the blockchain, thus bypassing the economic limitations of the protocol and creating an unlimited supply of bitcoins were possible. On August 15th, this vulnerability was attacked. Then, more than 184 billion bitcoins were generated in one transaction and were sent to two addresses. In a few hours, the administration tracked and removed this transaction from the blockchain. After that, it was fixed and bitcoin was updated in its security protocols. It was the only serious vulnerability in the history of bitcoin that hackers managed to exploit.
Besides, mining became widespread among the users and miners began to unite in pools with the distribution of rewards for the blocks found among all participants in proportion to their contributions. Despite some negative nuances such as low transaction speed and commissions, bitcoin rapidly grew in popularity and became at that time, a successful project due to its privacy and decentralization. From 2013 till now, new technologies for creating and updating cryptocurrencies are appearing. The bitcoin price increased due to the spread of news about the adoption of bitcoin in various countries on the legislative level and the integration of blockchain technology in daily life.
However, advertising new projects and publishing news about them will surely attract a wave of new traders, common users, and investors who have just become interested in the new world of blockchain technologies. Along with the growing popularity of cryptocurrencies, this market is also developing very fast with the creation of thousands of new ICO projects that are raising billions of dollars that are invested in new technologies, products, and companies.