The history of bitcoin in the context of the cost of cryptocurrency
Bitcoin is the first, main and most expensive cryptocurrency in the world. And also the best thing that was created on the blockchain. However, the full history of bitcoin is unknown and still raises questions.
The concept of currency was first described by Satoshi Nakamoto in a special document on 31 October 2008. It is unknown who is behind this name — one person or a team of developers. The history of Bitcoin has generated a lot of guesses about who created the coin but there is no evidence base in them.
The issue of bitcoin is not regulated, it is decentralized, like other cryptocurrencies. Its issuance and transactions are carried out collectively by the network. No one can dispose of bitcoin alone.
The miners in the mining process create the coin. They literally extract the asset by solving mathematical problems and forming new data blocks in the chain. Therefore, bitcoin is called “digital gold” by analogy with the gold fevers of the past centuries.
Bitcoin is used in the same way as other digital money. It can be paid for products and services where it is accepted. Also, the currency can be transferred from wallet to wallet, as is the case with conventional, fiat funds.
Also the cryptocurrency is used as an object of investment. In December 2017, it was equal to $19 000, and in the summer of the same year, the coin was sold only for $2000. It is easy to understand that the volatility of bitcoin is significant, and the fluctuations in its rate can make good money.
By the way, about the course of “digital gold”. The price of the coin is influenced by demand, and the fact that the release of bitcoin is strictly limited. As you know, the limitation of the product generates a huge demand for its purchase.
Satoshi Nakamoto has prescribed that a total of 21 000 000 bitcoins will be created. Now 178 379 900 coins circulate on the market. The last bitcoin will be mined by 2140. Moreover, experts estimated that 99.2% of all bitcoins will be on the market by 2036. Less than 1% of the coins will be issued for almost 100 years.
The history of bitcoin, on the one hand, has been studied, but there are still questions. However, for many investors it is not so important. Much more valuable is that the cryptocurrency allows to earn and is an effective investment tool.