Learning about the history of cryptocurrencies, specifically Bitcoin’s history, can make you a smarter and more informed investor. Bitcoin history is not very long. Prior to 2008, there were references and attempts to start an online currency, such as B-Money in 1998. Although computer scientists were conceptualizing cryptocurrency for some time, Bitcoin began in 2009 by an anonymous founder, using the pseudonym, Satoshi Nakamoto.
Bitcoin History: From 2008 to Present
In 2008, a paper titled Bitcoin: A Peer-to-Peer Electronic Cash System began circulating in a cryptography mailing list. It was written by somebody who identified themself as Satoshi Nakamoto, but the real identity of Mr. Nakamoto is still unknown. In the paper, Nakamoto introduced the concept of Bitcoin, a currency that eliminates any third-parties, like a credit card company or a bank, from interfering with a transaction. He explains how there is a timestamped digital transaction list, introducing blockchain technology. In the paper, Nakamoto claims, “We have proposed a system for electronic transactions without relying on trust.”
In 2009, Bitcoin is made available to the public for the first time. Bitcoin mining, as in the creation of new bitcoins, also starts. Bitcoin was exclusively mined and not traded until 2010. Bitcoin history started evolving to how we view it today when the first bitcoins were sold. The first transaction was for 2 pizzas at Papa John’s on May 22, 2010, for which Laszlo Hanyecz paid 10,000 bitcoin (worth approximately $67,000,000 when this article was written). May 22 is now known as Bitcoin Pizza Day.
Crash and Peak
In 2013, the price of a single Bitcoin hit $1,000, and quickly crashed to $300 - not reaching $1,000 again until 2017. Shortly after this, more cryptocurrencies were born into the markets. It was also around this time that ICOs, or initial coin offerings, were introduced. If you’d like to learn more about ICO’s, you can check out our blog here. Fortunately, Bitcoin survived this crash and reached a peak of nearly $20,000 in late 2017.
The SEC warned investors that due to a lack of regulation, they could be investing into scams, and they’ve announced more regulation on the cryptocurrency. However, this was nowhere near as extreme as how China banned them entirely in 2017. The SEC has been continually announcing new regulations and investigations regarding ICOs and cryptocurrencies, including tax regulation.
In 2018, Bitcoin is still popular and being regularly traded. Throughout the year, the price has ranged from just over $5,800 to just over $17,000, and it’s changing every day. There are over 1,600 cryptocurrencies, but Bitcoin boasts the highest market capitalization of them all.
Buy Bitcoin Today
If you’re ready to get your hands on Bitcoin yourself today, head over to a Pelicoin ATM. Pelicoin ATMs are a convenient and fast way to buy Bitcoin all over the Gulf South. Contact Pelicoin today with any questions at (504) 507-0879 or firstname.lastname@example.org.