Bitcoin is one of the most popular cryptocurrencies being used and invested today. It's even used at online casinos that accept Bitcoin.
In just over 10 years, Bitcoin has spiked and crashed many times. Despite the major fluctuations in value, this crypto remains a popular choice and has soared to being worth thousands. This peer-to-peer electronic exchange allows individuals to send money to others without having any bank involved.
Crypto was initially created so that people would not have to be reliant on any financial or government institutions to be able to conduct transactions.
Today, Bitcoin is still the most popular cryptocurrency and many believe it could eventually replace physical cash in many countries. While this crypto is far from perfect, multiple investors support the developments that have been made since the currency was introduced.
The success of Bitcoin has led to the development of other cryptos, though these are not as widely used. Here, we examine how Bitcoin starts and what the future holds.
Back in 2008, there was a recession and many distrusted banks and how they were operating. Bitcoin was created as a solution to this turmoil. A white paper was written by Satoshi Nakamoto and it addressed the control of money by centralized banks and the trust issues people were having with how banks were handling cash.
With the financial system that we are all familiar with, transactions can be interfered with by third parties and transaction costs can begin to pile up. Bitcoin was designed as a way to conduct secure transactions without using any third party. It made use of cryptography to maintain network integrity instead of having to rely on any banks or other financial institutions.
The blockchain was launched in 2009 when the first block, referred to as the Genesis block, was mined. A test transaction was conducted a week later with success. For the initial months of its existence, Bitcoin could only be obtained by mining and the crypto had no true monetary value.
It was more than a year before an economic transaction was conducted. This happened when one person ordered two pizzas in Florida for the cost of $25, or at that time, 10,000 BTC. This transaction was the first recorded and paved the way to Bitcoin’s success. It also set the value of Bitcoin at 4 per penny. Today, that same amount of Bitcoin would have a value of $400 billion!
If you know anything about Bitcoin, it would be that it is a highly volatile cryptocurrency. Even with many price fluctuations over the years, the overall value of Bitcoin has exploded since it was introduced. In 2011, the price crossed $1 and for the first few years, Bitcoin was valued at less than $2. Later that same year, a surge happened and the value soared to $31 before it fell back to single digits.
In 2013, Bitcoin once again soared and reached $200 and by the end of November that same year, it had a value of more than $1000. In November of 2017, Bitcoin rocketed and had a value of $10,000. Over the next few years, the value of the crypto continues to rise until it hit a maximum price of almost $69,000 in 2021.
Today, Bitcoin is valued at around $37,000, a far stretch from that maximum price point. While the identity of this successful crypto remains anonymous, investors around the world have benefitted from this new form of payment and Bitcoin continues to be one of the main investment choices. The future of Bitcoin remains bright and many believe cryptocurrencies will soon replace standard cash tender.
While investing comes with a risk, as evidenced by the massive price fluctuations, it is still something that many are using. Today, Bitcoin is obtained through exchange platforms where the currency is bought, sold, or traded.