Evolution of cryptocurrencies

Cryptocurrencies reached their historic peak in December 2017, but they are definitely not new, the biggest sister is Bitcoin (BTC), which in 2010 had a value of 0.33 cents.

Not only is it an interesting market, it is also a great story to read, so we will tell you a little about the chronology of cryptocurrencies.

It all starts in January 2009, when the first version of Bitcoin is published via mailing under the pseudonym of Satoshi Nakamoto (name of the creator or creators). In that same month the first transaction in cryptocurrencies of history was produced, the creator sent some BTCs to the cryptographer Hal Finney.

2009 is when all this revolution started, Bitcoin was created, the first transaction was made and th first Bitcoin exchange took place: 1.309,03 BTC for one dollar.

What was the first purchase with Bitcoin?

PIZZA, that’s right, something that is extremely well attached to the technological world. A year after the launching of Bitcoin, a man under the name of “Laszlo” made a publication on a forum that offered all the Bitcoins he had in exchange for two pizzas. An 18-year-old guy named Jerco saw the publication and became the first cryptocurrencies merchant by ordering two pizzas with his credit card and telling the deliveryman to take them to the house of “Laszlo,” and that’s how the guy got his pizzas and Jerco received the 10.000 BTC agreed.

By the time, 10.000 BTC were worth US$41 (the approximated price for two pizzas), but this transaction led a know open code website to make a positive publication of the existence and real application of cryptocurrencies, which generated the first important increase in Bitcoin’s value: those 10.000 BTC reached US$800 two months later, reason why it’s unbelievable to believe that two pizzas would cost more than 100 million dollars today (2018).

You may like: The big question behind Bitcoin’s success

Japan jumps in the cryptocurrency boom

An exchange house is needed for every currency and this wasn’t an exception for Bitcoin, reason is why Mt. Gox was born in Japan, the first exchange house of cryptocurrencies in history, which came to raze handling 80% of all transactions that were made worldwide.

But 4 years ago, the history of this company and the cryptocurrency changed in general when they suffered the theft of 850 thousand Bitcoins valued at 430 million dollars, which led to the bankruptcy of the company, however, this marked a before and after in the management of BTC that applied worldwide, new codes and security protocols were established, which keep cryptocurrencies safe today.

Due to this Bitcoin closed the year 2010 at the price of 0.30 cents.

Wikileaks and how it influenced the increase of Bitcoin

The Bitcoin suffered a lot due to security problems that Mt. Gox had, however, Wikileaks made a difference, in June 2011 the capitalization of this cryptocurrency reached 240 million dollars thanks to the start of accepting donations for Wikileaks, which led the BTC to reach parity with the dollar and close this year with a large increase to US$5.27.

2012 -2014 officially recognised as currencies

The objective of cryptocurrencies is the decentralization of the economy of the traditional finance system and when the Europe Central Bank recognized Bitcoin as a thread in October 2012 by stating that “virtual currencies can have a negative impact in tge reputation of Central Banks if its use grows,” the world realized they were achieving their goal.

This led more websites to use cryptocurrencies and in 2013 the first Bitcoin ATM was open in Vancouver, Canada, which generated a strong increase in the price of BTC, which reached US$1000 for the first time, but this upturn in price alerted the Central Bank of China, which prohibited transactions with cryptocurrencies and making BTC close the year at US$600.

In 2014 there was a time that it was believed the end of Bitcoin was coming after Mt. Gox shut down in Japan, however, this even and the upcoming reinforcement of the security reaffirmed the currency and by the end of the year R3 was formed, a consortium that reunites financial entities of first level, in which the most outstanding are BBVA, ING, Barclays, Deutsche Bank, UBS, JP Morgan, Credit Suisse and Bank of America, with the objective of developing the uses of the Blockchain technology.

This summer Ethereum was born, a Blockchain platform that supports the creation of decentralized applications, such as intelligent contracts.

You may like: Modalities and functionalities of Blockchain

The attention deviates from Bitcoin to Blockchain

After the arrival of Ethereum, the attention deviated from cryptocurrencies to Blockchain. In early 2015, Coinbase launched the first regulated Bitcoin exchange in 25 states of the USA.

But something that once marked a very high point in the rise of cryptocurrencies was the fact that Wall Street went into Blockchain.

In September, Visa, Nasdaq and other Wall Street signatures invested 30 million dollars in Chain, a Blockchain company, and in December of the same year Bitcoin was considered as the cryptocurrency with the best performance of the year, with an assessment of 35%.

In 2016 there were 15,5 million bitcoins in circulation (half of the planned for 2030), which individual price was around US$450, and in the first trimester of the year Blockchain companies raised 84% of the investment, compared to startups dedicated to currencies.

A global event like the one that Blockchain had been generated couldn’t go unnoticed and thus began the search for the true identity of Satoshi Nakamoto. Many theories have been shuffled, but none has been conclusive, even in May 2016, Craig Wright, businessman and Australian computer scientist, claimed to be Satoshi Nakamoto, but it has not been proven that he actually participated in the creation of Bitcoin or that he did it alone.

All these events and the constant upturn of Blockchain led to th creation of more than 770 Bitcoin ATMs around the world.

2017, Bitcoin reaches its historic highest price

The constant rise of the Bitcoin’s price led more companies to accept this currency, for example, it rose 4.6 times in a year in Japan.

A key moment arose in Vienna, as Bitcoin had its first physical space in the “House of Nakamoto” in Vienna, the first real store where you can buy with BTC.

In March 2017, Bitcoin exceeded the price of gold for the first time in history, being exchanged in the markets for US$1245 and the rise was not going to stop at all, reaching an all-time high of US$19000 in December, which produced approximately 300 thousand transactions per day.

The future of Bitcoin and Blockchain

Although Bitcoin is still the most famous cryptocurrency with the highest market volume (around 35%), there are more than 1000 different cryptocurrencies, commonly called alternative currencies or altcoins. While Bitcoin is considered the “digital gold” of cryptocurrencies, many other cryptocurrencies aim to optimize the technological advantages of Blockchain for using them in different sectors of the market (games, applications, hospitality, health insurance, online commerce, etc.).

When a company announces a new technology and its cryptocurrency, it is very common to launch initial offers (Initial Coin Offering, ICO), as a search for investors; cryptocurrencies that turn out to be very promising raise several million dollars during their initial ICO.

So, if you decide to invest in any of these cryptocurrencies, make up your mind now! The price of these cryptocurrencies is rising constantly, the best example will always be Bitcoin that is speculated to reach US$40000 this year.

Previous articleNext article