Cryptocurrencies have been impressing the world for a few years so far, and the majority of people still do not know the origins of such technology. For the first time, something like a modern blockchain technology was created back in 1998 and found its first implementation by the year 2009. If one had invested in Bitcoin, for example, the year it was firstly available, this person would now be richer by $50 million.
The very first idea of the blockchain technology came to the man named Satoshi Nakamoto back in 2008. His goal those days was to create an electronic peer to peer system which allowed people to transfer cash, since people have long been trying to create some kind of a digital currency, but were always restricted by the centralization issue. That is why he decided to create the digital cash system with no central governing, which would be a property of the whole Bitcoin community.
Stages of Cryptocurrency Development
Just in a few years’ time after the Bitcoin creation, its value skyrocketed and reached more than $6,700 in 2018. In 2009, though, the price for a single Bitcoin would not be higher than $27.
Therefore, we may trace some kind of evolution of the cryptocurrencies’ development and growth:
- 1998-2009: period of establishing
- 2008: period of creation
- 2009: the beginning of cryptocurrencies’ existence
- 2009-2011: gradual growth of the Bitcoin
- 2011: emergence of competitors
- 2012-2014: first scams and thefts
- 2014-2016: emergence of Etherum and ICO
- 2017 – now: Bitcoin reaches $10,000 and continues to grow
In 2018, there have already been a few significant changes to the way the world of cryptocurrencies existed before. Firstly, Korean giant, Samsung, confirmed that it is making chips to mine coins. Secondly, a number of European Union countries started to work on the regulations of cryptocurrencies both locally and regionally. Thirdly, the very technology behind Bitcoin, the so-called blockchain, has started a revolution in the fintech industry which is likely to significantly impact the way things are to be done in the nearest future.
Moreover, cryptocurrencies have slowly turned into accessible instruments of investment for a greater majority of people. No one is surprised by paying with Bitcoin in the cafe or for a cinema tickets. It means that cryptocurrencies slowly become our reality and an extremely useful and convenient financial instrument.
All in all, the history of cryptocurrencies takes its roots in the 1998 with the first trials to establish a digital currency. The actual boom of the technology happened in 2015 with the emergence of a greater number of coins, as well as unprecedented growth of Bitcoin, which by the 2017 reached a price of $10,000.