How Cryptocurrencies Started: History and Original Idea

Cryptocurrencies are, above all, an unregulated, decentralized type of digital currency. When cryptocurrencies were first introduced, they were known as “cyber currencies” in the 1980s.  

Although Bitcoin was the first widely used cryptocurrency, there have been earlier attempts to develop online money using encrypted ledgers. Two examples of this are B-Money and Bit Gold, which were the original ideas for the cryptocurrency industry but never came to light.

We’ll look at the development of cryptocurrencies and their history in this piece. If you’re looking for investing options, invest some time in learning cryptocurrencies price prediction.

 

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Original Idea back in the 1980s

American cryptographer David Chaum developed digital currency in 1980, a few years after the first mention of cryptocurrencies, using cryptography to secure and verify transactions. Yet, the software and cryptographic methods that would enable the establishment of a genuinely decentralized digital currency didn’t start to be created until the early 1990s.  

On a cryptography email list, a document titled “Bitcoin – A Peer to Peer Electronic Currency System” was uploaded. It was published by a user going by the name Satoshi Nakamoto, whose true identity is still unknown.

The dawn of Bitcoin

Since its inception in 2009, Bitcoin has been around, and the technology that underpins it has far older origins. In fact, if you had put just $1K  into Bitcoin in the year it became widely available, you would today be nearly $43 million richer.  

Those who need to transmit money across borders without intervention from banks or governments have grown more and more fond of this cryptocurrency. However because of its sharp increase in value, some people find it challenging to decide how to use their Bitcoins.

It was the sole cryptocurrency on the market in the beginning of 2010. The cost was a few pennies back then. Other cryptocurrencies joined the market during the following years, and their values fluctuated along with Bitcoin’s. 2017 undoubtedly saw many intriguing occurrences. As the value of Bitcoin and other cryptocurrencies escalated, so did the number of scams and frauds targeting cryptocurrency investors.

Bitcoin Alternatives emerge

With the rise in Bitcoin’s popularity and the acceptance of the idea of decentralized, encrypted money, the first competing cryptocurrencies begin to appear. These, usually well-known by the name “altcoins,” try to complete and evolve the original Bitcoin concept by offering quicker processing, more privacy, or some other advantages. Among the first coins to arise were Litecoin and Namecoin. Around a thousand cryptocurrencies are now in use, and more are constantly being created.

The rise of Ethereum

Thanks to Ether, the cryptocurrency, the platform is enabled to make apps that are based on blockchain technology and smart contracts practical. Initial Coin Offerings (ICOs) were created to herald the arrival of Ethereum (ICOs). These fundraising platforms provide investors the ability to trade what are usually essentially equities or shares in start-up companies, similar to how people may invest in and trade cryptocurrencies.

 

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2017: The year of Bitcoin

Although Bitcoin has been the focus of several conversations and arguments, it is difficult to say exactly when it first gained popularity. Many people think that Bitcoin’s surge, from $1,000 to $20,000 before falling down to $10,000, occurred in 2017. Others contend that cryptocurrency exchanges like Coinbase, which made it simpler for those with no technical expertise or experience to trade cryptocurrencies, are to blame for the meteoric rise in popularity of Bitcoin.

Bottom Line

The cryptocurrency market is growing quickly and is only expected to do so. As the digital economy grows at an exponential rate, cryptocurrencies will likely play a big role in the design of our future monetary system. Today, many companies provide services for the development of blockchain solutions for all types of businesses. This allows cryptocurrencies to increasingly influence our lives. Cryptocurrencies come in a wide variety nowadays; some have shown to be more stable than others while still having room for growth. 

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