Now and Then #1: Bitcoin

Back in January 2009, a mysterious person or a group of people called Satoshi Nakamoto created a technology that laid the foundation for the revolution of finance. As described in the white paper, the digital currency – Bitcoin – aimed for lower transaction fees and complete independence from governments. 

Over the years, both the creator and the technology itself raised a lot of discussions. The decentralized nature and innovative system went through various stages and gained increasing popularity around the globe. 

In today’s SpectroCoin blog post, we will give a brief overview of how Bitcoin has evolved throughout its existence and discuss how this cryptocurrency looks like today.

Bitcoin has evolved significantly since 2009

What was Bitcoin like back in its early days?

At the beginning of Bitcoin, Satoshi Nakamoto published a whitepaper called “Bitcoin: A Peer-to-Peer Electronic Cash System”. In this whitepaper, Bitcoin was presented as a decentralized virtual currency – instead of having one authority controlling all transactions, all transaction information is held in a public ledger. 

For some time after its launch, only miners – computers that solve mathematical puzzles to verify transactions on the network – could obtain Bitcoin. Miners traded this cryptocurrency for fun. 

In the early days, Bitcoin transactions were mainly negotiated on internet forums. While there were no exchanges that offered the ability to buy or sell this currency, people simply traded goods for bitcoins and decided on the value. 

The first real-world Bitcoin transaction – a purchase of pizza for 10 000 BTC – in 2010 set a value to $0,004 per one bitcoin. That same year, the cryptocurrency was listed on exchanges, making it easier to hold, buy, sell or trade, and accessible to wider communities. 

In 2011, miners and programmers began using Bitcoin as the basis for other networks, such as Litecoin and Ethereum. The broader application of this cryptocurrency sparked a lot of interest in different use cases. In addition, businesses began accepting Bitcoin as a means of payment alongside traditional currencies. 

What is Bitcoin like today?

Bitcoin has improved the world of finance in many ways. It offers a more effective and convenient way to exchange and transfer money by enabling online peer-to-peer transfers without middlemen. 

In addition, Bitcoin opens up an easy and cheap option to send assets around the globe in seconds. It does not matter if you are initiating a transaction to your family member in the same city or transferring assets to your friend on the other side of the world – Bitcoin payments are borderless. 

If years ago you had to search for exceptional places that accept bitcoins for your purchases, today it would be hard to name a thing that you could not buy with this cryptocurrency. Your morning coffee, video games, flight tickets, or space travel – all of these can already be purchased with Bitcoin.

Such a wide range of Bitcoin use cases has significantly increased the popularity of this cryptocurrency, making it one of the most talked-about topics worldwide. Clearly, this growing interest has come together with a considerable increase in Bitcoin price. Just recently, Bitcoin reached its all-time high of around $56 000. 

So far, there have been about 18,5 million bitcoins already mined. The amount of bitcoins in existence is finite – the total supply is limited to 21 million BTC. While there might be changes in the protocol that would increase this number, there are discussions ongoing regarding the result of reaching the final amount. 

There are still ongoing discussions about what the future holds in regards to Bitcoin. While the most prominent companies, such as Tesla or MicroStrategy, continue to invest in Bitcoin and boost its popularity, sceptical opinions exist. 

Want to discuss more about Bitcoin? Don’t hesitate to get in touch with us via the LiveChat bubble available on our website or share your thoughts on our social media! 

You can buy and sell or trade Bitcoin at SpectroCoin.