The evolution of Bitcoin and cryptocurrencies

GUEST POST - In 2021, there aren’t many people who haven’t heard of Bitcoin. Created by Satoshi Nakamoto, the premise of Bitcoin was simple: create a currency that was virtually un-hackable and untraceable.

Fast forward a few years and Bitcoin and cryptocurrencies have become hugely popular for trading enthusiasts. So much so that Bitcoin has now been accepted as legal tender in some countries.

Pre-Bitcoin

In 2008, the world was impacted the Great Recession. This crisis was mainly caused by the mortgage problem in the United States of America first and propagated into other international banks worldwide. As a result of the dire circumstances, there was a movement to rethink the whole financial system and how to reduce further instances like the Great Recession.

Out of this, Bitcoin was born.

A timeline of Bitcoin

2008 - The Mysterious Mr Nakamoto
To this day, we still don’t know who Satoshi Nakamoto is. What we do know is that whoever he/she is, they created the first cryptocurrency, Bitcoin.

2009 – The start of Bitcoin
As a result of Nakamoto’s work, Bitcoin software was made available to the public for the first time. The process by which newer bitcoins could be made traded was also established.

2010 – The real value of Bitcoin
Up until 2010, Bitcoin had never been traded, only mined. That all changed in 2010 when someone sold their Bitcoin in exchange for two pizzas.

2011 – The rise of rival crypto
In 2011, people began to realise what could be the potential of cryptocurrencies, leading to different ‘altcoins’ being created. There have been many over the years (including the legendary Doge Coin) and there seems to be no indication that this is letting up. In fact, altcoins are now so popular that Etherum has now taken over Bitcoin when it comes to daily transactions.

2013 – Bitcoin Crashes
What goes up, must come down. In 2013, everyone who invested in Bitcoin experienced first-hand the volatility of cryptocurrencies. With trading prices hitting rock bottom, it would be years before Bitcoin reached $1,000 again.

2016 – Etherum and ICOs
In 2016 came the arrival of Bitcoin’s arch-rival: Etherum. Marked by the emergence of Initial Coin Offerings, Etherum was a catalyst for change in terms of trading Bitcoins. ICOs meant that funds could be raised by creating and selling new crypto tokens. However, this was controversial and was publicly condemned by China. In fact, China has now gone one step further and has imposed an outright ban on cryptocurrencies.

2017 - Bitcoin reaches $10,000
Despite the volatility of Bitcoin, in 2017 Bitcoin reached a milestone. For the first time ever, a single Bitcoin was valued at $10,000 due to a growing popularity and demand for these currencies. It was at this point that high street banks began to investigate ways to work with Bitcoin, given the huge amount of wealth tied up in cryptocurrencies.

What’s happening now?
Whether you’re a Bitcoin enthusiast or believe it’s a scam – it’s here for the long run. In fact, nowadays platforms such as the MT4 Webtrader mean that virtually anyone can have access to this market.