The money in your pockets has three basic traits – it’s tangible, centrally regulated and easy to counterfeit. Bitcoin is the exact reversal of it. Bitcoin is a cryptocurrency that operates independently without banking institutions and the government meddling into its affairs. There’s nothing physical about it – it’s all virtual!
It’s non-tangible, but renders gains for real. It flows freely, without anyone/anything controlling and tracking its footprints. And everyday monetary influences, be it either inflation or deflation, don’t regulate it, as its value is totally determined by market demand.
More importantly, Bitcoin transactions are irreversible. Once initiated, there’s no way to retract. Bitcoin transactions bear no costs, and can be done with absolute anonymity. Gradually, it’s becoming as regular as other monetary values in the market. However, with no government backing, Bitcoin holds relevance as long as online merchants accept it.
THE HISTORY OF BITCOIN
Bitcoin is the brainchild of Satoshi Nakamoto, who published a white paper on the invention on October 31, 2008, namely “Bitcoin: A Peer-to-Peer Electronic Cash System”, describing what Bitcoin is. It was on January 2009 when Version 0.1 of Bitcoin was released. And, soon, Satoshi and Hal Finney, a cryptographic activist, transacted in bitcoins.
During October 2009, an exchange rate for the bitcoin was established, which was US$1 = 1,309.03 BTC. This rate was decided after framing up an equation as to how much is the cost of the electricity to run a computer, generating bitcoins.
BITCOIN’S JOURNEY INTO THE FINANCIAL MAINSTREAM HAS ALREADY BEGUN
In terms of worth, Bitcoin’s come a long way from its early days. Who would have thought that from US$1 = 1,309.03 BTC in 2009, the worth of internet’s favorite currency would shoot past US$2,900 in June 2017? The History of Bitcoin is not an easy one, and the infographic below will help you get an understanding of where it all began.
Originally posted at Dataconomy