X

Bitcoin: 10 Years of Evolution

From super geek and underground to one of the most well-known alternative currencies in the world- Bitcoin’s come a long way in just 10 years.

For anyone trading in cryptocurrencies, the volatile and highly energetic marketplace can be an exciting trading opportunity. Since its advent in 2009, crypto markets have undergone huge amounts of change.

Trading platforms like https://bitvavo.com/en have come into the scene, allowing for a higher adoption rate and giving a new trader a solid footing in the ever-changing marketplace. As more and more traders become familiar with the format and dynamic nuances of Bitcoin trading, it serves to only make the market more unpredictable.

Offering higher returns and better investment strategies for key players and new traders alike. However, understanding the present-day marketplace requires a solid foundation of knowledge of Bitcoin history. A history that in just ten years has changed the way the world thinks about finance.

The Birth of Bitcoin

In 2008, a domain name was registered. An oddity, Bitcoin.org, was created. Despite no one has heard of Bitcoin, and the domain is largely disused, it was still thoughtfully brought into existence.

In October of that year, a paper penned by Satoshi Nakamoto hit a cryptography mailing list. Much like Bitcoin itself- no one had ever heard of Satoshi Nakamoto, but what the paper described was something that gained the interest of many of the world’s most tech-savvy minds.

In the paper titled Bitcoin: A Peer-to-Peer Electronic Cash System detailed a new method of currency trade and ledger keeping capabilities. One in which a user would no longer have to rely on trust in a system or centralized powers in order to keep and trade finances.

Instead, it was a public system- designed and maintained by the people who use it. Using open-source software and publicly distributed ledgers to keep track of transactional history.

In 2009, the first Bitcoin transaction was completed. Hal Finley, a computer programmer, was the first to download and contribute to the blockchain, being awarded 10 Bitcoins, supposedly from Nakamoto themselves. And forever changing the way we think about cryptocurrency.

Modern Day Marvel

In the years that followed, Bitcoin began to experience its own renaissance. Creating a financial format that made sense following the implosion of the world’s economy. In 2008, the world watched as financial markets around the world crashed into the ground.  Largely due to irresponsible trading and poorly kept books.

Perhaps in response to this fear and newly embedded distrust of conventional currency, Bitcoin offered a novel change to familiar practices. Blockchain would soon become even more encouraging than perhaps Bitcoin itself.

Offering a much-needed option to centralized currencies, Bitcoin showed the world that peer-to-peer currency exchange was not only achievable but a viable response to the repeated mistakes of governmentally run currencies.

Blockchain allows users to clearly and publicly describe transactions in ways that are not only simple but also immutable. This type of technology allowed users to solve complex mathematical algorithms that perfectly and accurately described whatever transaction was taking place.

Once an algorithm is solved, the users are rewarded for their efforts — enticing anyone with the knowledge of the software to play along. Keeping an eagle eye on any transaction that is made, and an impeccable and unchangeable historical record — making it impossible to fudge numbers or obscure finances. With no central authority, inflation rates cannot be artificially controlled. Because everything runs off of a mathematical proof, it’s virtually impossible for outside forces to sway the markets.

The Future of Finance

Because of the usefulness of blockchain and decentralized currency, financially savvy individuals around the world are starting to use Bitcoin to hedge questionable financial securities. As trade wars between key players in global economies wreak havoc on the intrinsic values of fiat, more people are becoming wise to the need for decentralized currencies.

However, it hasn’t stopped many governments from doing their best to meddle in crypto affairs, attempting to structure regulations that would require Bitcoin holders to pay taxes or to declare funds and assets. Which is expressly against the decentralized and anonymous premise of peer-to-peer exchange networks to begin with.

On a more positive note, as the adoption of cryptocurrencies like Bitcoin and associated technologies grows, some centralized powers step in to improve access to these currencies for everyone.

Trading platforms and exchanges do indeed create a semi-centralized authority to Bitcoin trade, but it allows novices and less than tech-savvy individuals a piece of the crypto pie, giving them the options to get sound advice and easy to understand startup systems and wallets. If you deciding to invest or trade in Bitcoin, the first thing to keep in mind is choosing the appropriate & trusted trading app. One of the apps that have managed to attract attention in recent years is Bitcoin Trader, which allows you to trade in cryptocurrencies.

So, where can we expect Bitcoin to go in the next ten years? It’s hard to say, but if the first 10 have been any indication, we believe it’s safe to say we can expect great things as per BTC Price Prediction.

 

Richard Lee: Richard Lee is a regular contributor, who curates in-depth news stories and analysis about the cryptocurrency and blockchain space. He primarily covers latest happenings of US cryptocurrency market. He contributes to a number of well-known industry magazines and news sites before getting into NameCoinNews. He has strong skills in technical analysis of cryptocurrencies.