It still amazes me to this day how popular the cryptocurrency known as Bitcoin has surged to such a high price and so little time. We saw the birth of Bitcoin in 2009 and was created by an unknown individual who used the pseudonym Satoshi Nakamoto. He conceived the idea as the first of it’s kind decentralized method of payment for peer-to-peer transactions.
With no central authority or middlemen like banks, Bitcoin has established itself as cash for the internet. Check out the best investments of 2017 here.
A brief history of price
In may 2010 a man by the name of Laszlo Hanyecz made the first real-world transaction using Bitcoin by buying 2 pizzas for the price of 10,000 bitcoin back when the cryptocurrency was valued at $0.01.
Come June 2010, the price of bitcoin grew at a rate of 1000% from $0.008 to $0.08 for 1 bitcoin.
On the 8th July 2011, Bitcoin had reached a milestone, it had reached its first “bubble”. Later that year would see the price of Bitcoin fall to $2.
Jump all the way the November 2013, and we see for the first time in history, bitcoin has surpassed the $1000 mark. I’m sure many analysts who laughed and joked at bitcoin in the very early years were eating their words when this event took place.
November 2017 has seen the largest spike in its lifespan. Bitcoin is now trading at $8,000 per coin.
The use on the dark web
I believe the use of cryptocurrencies on the dark web to be partially why it’s so valuable. The dark web is full of nefarious items such as drugs, guns and hitmen for hire. Bitcoin was designed with the idea in mind that it would grant the owner an acceptable level of privacy. Criminals have since latched onto the fact that law enforcers are finding it much more
difficult to track down the owners on the dark web that are purchasing illegal items. Finance is looking interesting for the end of the year.
However this doesn’t make Bitcoin completely anonymous. It works with an unprecedented level of transparency that most people aren’t used to. Every single bitcoin transaction is: made public, traceable and permanently stored on the bitcoin network. The bitcoin address however, are created privately and are used to send and receive payments, and once a transaction has been been made, it solidifies itself in the history of bitcoin transactions. find out more by visiting this website.
“Bitcoin has value, because people say it has value”
The quote above was expressed by the founder of Galaxy Investment Partners, Mike Novogratz. He is raising $500 million for his fund as a signal to growing acceptance of cryptocurrencies in the marketplace, such as Bitcoin, Ethereum as well as others. He has stated that Bitcoin has born out of a “breakdown in trust”. People are moving their trust and faith from the standard financial institutions, such as banks after the crash of 2008, and into cryptocurrencies.
He also states the decentralized revolution, in which Bitcoin is the poster-child of is a response to the breakdown in trust that we have seen over the recent, when it comes to financial institutions. People no longer trust, or governments. For this reason alone, the trust people are putting into the transparent system of commerce is becoming an overwhelming phenomenon.
$10,000 might just be the low end of what Bitcoin could reach, we might see it rise even further to $20,000, or $50,000 or maybe even $100,000. But one thing is for sure. Bitcoin has become a revolution to combat the distrust which plagues governments and banking institutions.