How did the years fly?
It is now ten years since the famous anonymous figure Satoshi Nakamoto released the bitcoin whitepaper. The world’s first cryptocurrency has since then, been a center of attraction to everyone who cared about the thought of being their own bank or at least anyone who cared about making a fortune in 2017.
On Bitcoin’s 10th anniversary, we review the journey of this innovative technology and how it has risen from just a mere concept to the world’s most popular alternative to fiat currency in such a short time.
What Is The Idea Behind Bitcoin?
Well, it was on this day in 2008 (October 31), that the idea behind bitcoin was disclosed by an unknown individual or group known as Satoshi Nakamoto.
Interestingly, the concept was unveiled shortly after the infamous financial crisis which hit the world in 2008. Many banks around the world including popular US-based investment bank Lehmann Brothers declared bankruptcy and went into extinction in the aftermath.
It was at this crucial moment in human history that Bitcoin came into the scene, as a savior. According to the Bitcoin whitepaper authored by Satoshi Nakamoto, it would be a peer-to-peer version of electronic cash powered by the blockchain technology that allows online transfer of funds without involving financial institutions or a centralized body.
This very thought would take away the power of controlling money from the banks and hand it to individuals who exist on a blockchain network. It was the perfect answer to the global financial crisis and the beginning of a new form of “money.”
First Units Of Bitcoin Ever Released
After the bitcoin whitepaper was released, it took less than three months until its first units (50 BTC) were brought into circulation on January 3, 2009.
A concept for releasing new bitcoins called “mining” was also subsequently introduced. Since bitcoin will involve the collecting of transactions in blocks using computational power, incentives would be needed for an individual or group to carry out this important work to maintain the network. 50 BTC was stipulated as the incentive to anyone who solved a block a bitcoin transaction.
Nine days after this initial release, Satoshi tested the technology by sending 10BTC to a computer scientist, Hal Finney. It was after this transfer, that bitcoin transaction started. On October 5, 2009, the cryptocurrency got its first value of $0.00076 per coin and have grown since then.
Bitcoin Eight-Year Price Chart From 2010-2018
It is important to point out that it was not until late 2010 that crypto exchanges started springing up and hence the needs for sites that provided a real-time index of Bitcoin’s value for traders.
Here is a chart of bitcoin value from August 16, 2010, to date.
A closer look at the above graph will reveal the most significant and lowest points of Bitcoin.
2014 Bitcoin Outlook
Just when the value of bitcoin looked set to take off in 2014, it suffered its greatest setback.
The bitcoin price was hovering between $800-$900, when the largest crypto exchange at that point, Mt Gox was hacked. This event cast the future of the invention into a little obscurity but was never enough to stop it from making a comeback soon.
After the bearish spell, the cryptocurrency shot for the moon and landed in the stars in late 2017.
2017/18 Bitcoin Outlook
Many would define the year 2017 as the most memorable in Bitcoin’s 10-year history. The reason behind this is not far-fetched since it was the year when Bitcoin prices reached an all-time high.
Bitcoin price at the start of 2017 was below $1000, precisely at $964 according to data from CMC. By November 17, 2017, Bitcoin had reached its highest value of $19,758 and made many people rich.
The values would go on to drop at a rather slow rate before the end of the first quarter in the new year. At press time, the value of bitcoin was $6328, over 100% less than its value at the start of the year.
What The Future Holds For Bitcoin After Its First Ten Years
After completing its first decade, there are high hopes that bitcoin will live long to achieve its potential of being a peer-to-peer system that most people around the world can rely on.
Along the way, Bitcoin will definitely overcome barriers that have stopped its massive adoption. One of these includes the highly volatile nature of its value, a feature that many believed has now allowed institutional investors to get involved.
Just before this 10th anniversary, bitcoin prices have become relatively stable, hovering between $6200 and $6600 within this period. The cryptocurrency has even toppled some traditional exchange stocks for stability over a 20-day period and continues to impress.
This raises hope that period of massive Bitcoin adoption may not be too far from its 10th anniversary. Also, the possibility of having derivatives such as an ETF that is available on major exchanges can push the value of the cryptocurrency over the moon.
Nakamoto’s concept has found great fulfillment within its first ten years, and the pieces of evidence reviewed above have confirmed that it can only get better.
Happy Birthday, Bitcoin!