Does cryptocurrency still work? And how often?
Cryptocurrency was originally founded by David Chaum as DigiCash 1983 after he published a research paper on an untraceable and decentralised way of transferring money over the internet.
However, cryptocurrency never took off due to the lack of internet infrastructure and people’s disinterest.
- That is till 2008. In 2008, Satoshi Nakamoto released a research paper on the same topic of cryptocurrency and invented Bitcoin. But people were suspicious of the idea back then.
- In 2009, Bitcoin finally went live, but it had no monetary value in the beginning.
- Finally in 2010, the first transaction using bitcoin was made. It was a transaction to buy pizza.
- Right after this, Bitcoin miners started selling their bitcoin and the market value of bitcoin kept increasing.
- In January of 2011, an illicit organisation called Silk Road started using Bitcoin to sell illegal drugs. Simultaneously, Wiki Leaks also started using bitcoin after the restrictions imposed on it. In Just about a month, 1 bitcoin was worth 1 USD. However, Silk Road was banned and bitcoin gained a lot of media coverage for being used in illegal transactions. However, all publicity is good publicity.
- From 2012 to 2016, bitcoin and consequently cryptocurrency saw major growth with about 160,000 merchants using it. Companies like WordPress, Microsoft and Paypal started using bitcoin too. In 2013, 1 bitcoin was worth 1000 USD. It was even monitored on the stock market. Many other cryptocurrencies called Alt Currencies also started emerging.
- In 2017, Bitcoin had its golden age. It was even used for bitcoin hosting. At the start of 2017, 1 Bitcoin was worth 1200 USD. By June, it had already crossed the 2000 USD mark. In November, it crossed the 10,000 USD mark which was mind blowing. And in December of the same year, it crossed the 20,000 USD mark.
- However in 2018, the marker came crashing down and by the summer of that year, 1 Bitcoin was worth just 6000 USD. It was caused due to the many restrictions imposed by the cryptocurrency due to its anonymous and decentralised/unregulated nature. Some countries even banned the cryptocurrency.
Since then, the rise in the popularity of cryptocurrency has been fluctuating.