Today, when the cryptocurrency market has thousands of assets, many no longer remember when Bitcoin appeared. In this article, we will give a brief historical background on the world’s first cryptocurrency, analyze its price and popularity fluctuations, and trace the nature of the changes and possible prospects.
Prerequisites for the emergence of bitcoin
One of the reasons for the emergence of cryptocurrencies was the shaken attitude towards traditional (fiat) money. Distrust has developed against a worldwide economic recession and the European debt crisis.
Even before bitcoin appeared, the idea of creating virtual money was already in use. The problem was their reusability. Virtual cash can be represented as a digital code, which is easy to copy for the next transaction. Access to money is carried out using a digital key. To exclude reuse, it was decided to check the digital key in a trusted source. But if there is only one source, then it can be hacked.
The date of appearance of bitcoin is considered to be October 31, 2008, when the first article about bitcoin was published – “Bitcoin: A Peer-to-Peer Electronic Cash System.” In this article, the creator Satoshi Nakamoto (presumably a pseudonym) first spoke about the principle of operation of the blockchain system, built on the idea of verifying a digital key in several decentralized sources. On this system, the functioning of bitcoin and other cryptocurrencies is built.
Price and appearance of the first bitcoins
So, where did bitcoin come from? It was a reward for mining the world’s first block in the bitcoin network. This reward was calculated in coins and amounted to 50 conventional units (bitcoins).
The first block is also called the genesis block. It was to him that the subsequent links of the bitcoin blockchain later joined. As new blocks were added, the number of bitcoins also grew.
It is essential to understand bitcoin not only when it appeared and how much it cost, but its absence from any equivalents, such as a stock of gold or silver. This feature is typical for all cryptocurrencies. Their cost directly depends on the demand in the market. It’s hard to believe now, but at the very beginning, when the genesis block was created, when the first bitcoin appeared, its price was equal to 0 USD. However, the price began to rise with the spread of information about the new currency.
The Bitcoin exchange rate has experienced many ups and downs: from 0 to 66,000 USD
When bitcoin was created, no one was interested in how much it cost. It was an experiment of developers who dealt with the issue of decentralization of the guarantor of any transaction made on the Internet. Yes, bitcoin is still unbacked, and no one is required to use it, but people have begun to do so.
Distribution and influence of bitcoin
The total capitalization of bitcoin is vast and, at its peak, exceeded 413 billion US dollars. This could not have been predicted when the first bitcoins appeared.
Bitcoin first came to public attention when its price increased more than eight times from August 2016 to August 2017. From $572.3 per coin to $4764.8. Investors were attracted by the opportunity to make good money on exchange rate fluctuations. Designed to bypass financial intermediaries and modernize the financial system, it has great potential to influence the global economy.
From the moment when the first bitcoin appeared and until now, its main attractive features remain unchanged, namely:
Limited issue. The maximum number of bitcoins has already been calculated. Their number cannot exceed 21 million coins. This is due to the structure of the blockchain system in which it exists. This restriction helps to avoid the problem inherent in fiat money – depreciation due to the increasing issuance of banknotes.
Decentralized system. All over the world, just like in Russia, when bitcoins appeared, it became possible not to depend on fiat money and the actions of governments. The very idea of bitcoin excludes the presence of intermediaries in transactions. In addition, transactions carried out in such a system are highly reliable and anonymous.
Safety. It is impossible to steal or fake cryptocurrency, it exists only in the form of a digital code, and it is almost impossible to hack the basic protocol.
Summary
We briefly looked at how much bitcoin cost when it appeared. In rubles, dollars, or any other currency, it costs nothing. October 31, 2008, is considered to be the date of the appearance of bitcoin – the moment of its first mention in the media. The creator is deemed to be Satoshi Nakamoto.
The total capitalization of bitcoin has reached 413 billion USD, and its maximum price is 66,000 USD per unit.
Bitcoin is a payment system based on blockchain technology. This technology provides bitcoin with the following qualities:
An emission limit prevents bitcoin from depreciating with the release of new coins.
Independence from fiat money and the absence of an intermediary in transactions in the form of a state.
The high degree of reliability and anonymity.
Security due to the impossibility of stealing coins or counterfeiting them.
