There are a lot of wild stories out there saying that the Bitcoin was created by an unknown computer genius who has never been seen or met in person. Sorry to say, but as cool and mysterious as that sounds, it’s not true. Lets see what is crypto currency mining about?
Designer of Bitcoin was Designed by Craig Wright from Australia, under the name “Satoshi Nakamoto”, Craig Wright put a link to a cryptography mailing list titled : Bitcoin: A peer to peer Electronic Cash System. This paper described in detail about a peer to peer network to generate what is known as a system for electronic cash system to be relied on trust. This was used as a form of proof of work or a form of payment. Let’s learn more about Bitcoin and how it’s changing how we invest and potentially spend in the future.
How did this Happen
In January 2009 the bitcoin revolution came into existence with the release of the first open source bitcoin client and the issuance of the first bitcoin. Satoshi Nakamoto mined the first block of Bitcoin known as the “Genesis Block” This rewarded him with 50 Bitcoins. In the code to the block was a text:
“The Times 03/Jan/2009 Chancellor on brink or second bailout for banks”.
This note was interpreted as both a time stamp of the Genesis date and a derisive comment on the instability caused by the Fractonial-reserve banking. There was the first supporter and advocate of Bitcoin and his name is Hal Finney. He downloaded the bitcoin software the day it was released and was rewarded with 10 Bitcoin from Nakamoto in the worlds first Bitcoin transaction.
Other supporters early on were Nick Szabo, the creator of Bitcoin Predecessor Bit Gold. Another was Wei Dai, Creator of Bitcoin predecessor B-money. The public face of Bitcoin is Gavin Andresen who is now the lead developer of the Bitcoin Foundation. The value of the Bitcoin was decided by individuals on the Bitcoin forum with one notable transaction of 10,000 BTC used for a PAPA JOHNS PIZZA Delivery. (Could you imagine paying 10,000 BTC for a pizza at its current worth!)
Unfortunately there was vulnerability with in the Bitcoin protocol but it was spotted. Transactions were not properly verified before being included in the transaction log or Blockchain. This allowed for the users to bypass Bitcoins economic restrictions thus creating an indefinite amount of Bitcoin. Fortunately the Vulnerability was exploited and within hours the bug was fixed allowing for over 184 billion Bitcoins to be erased because of it.
So everyone wants to known how did this stock get so high and when did this stock go up? Where was I when this was taking off and why didn’t I buy that Bitcoin years ago when my buddy was telling me about this? I thought it was a scam back then like many others. So I never invested. Like many I missed this opportunity, but I have learned to seize the day! Let’s learn how the growth of Bitcoin came into fruition.
Starting in 2011 the open source code created other cryptocurrency which began to emerge. Wikileaks started accepting Bitcoin as a donation, and so did the Electronic Frontier Foundation among other organizations and agencies. In march 22/2011 WeUseCoins published the first viral video with over 6.4 million views. In Dec of 2011 a patent was filled by Douglas Feigelson for “Creating And Using Digital Currency” with the United States Patent Office.
In 2012 the Dramatization of Using Bitcoin was used in a CBS drama The Good Wife in its third season with CNBC’s Mad Money, Jim Carmer. He plays himself on the show in a courtroom scene where Jim testifies that he does not consider Bitcoin to be a true currency, saying “There’s no central bank to regulate it;It’s digital and functions completely peer to peer. In 2013 Bitcoin is reported to be selling at $22 per Bitcoin through a Bitcoin Payment processor CoinBase. Throughout the months of 2013 the price of Bitcoin is going up and up thanks to more recognition like OK Cupid and Foodler accepting Bitcoin as form of payment for services rendered. WordPress also accepted Bitcoin starting in 2012. In October 2013 the FBI seized roughly 26,000 BTC from the website Silk Road during the arrest of alleged owner Ross William Ulbricht.
Fast track to January 2014 and according to USA Today stated that five locations would start accepting Bitcoin in Las Vegas hotel and Casino’s, including certain restaurants. In July Dell started accepting Bitcoin among many others. You might be wondering to yourself “why haven’t I heard about this until now” the truth is, If your not in the known you just won’t known.
By 2016 Bitcoin is trading on a multinational level on the stock market at a whopping $600-$780 And going up! As the Chinese Renminbi depreciated against the US Dollar, Bitcoin rose to the upper $700’s. This is where it really took off was around May-June of 2017 It rose to $2,000-/$3,200+ and doesn’t seem to go down. By November this stock jumped to $7,300+ a stock! It briefly topped at USD $8,004.59/ BTC at 01:14:11 UTC before retreating from highs. It seems to Top off at $17,900 in December 2017 and then falling from there. This month it seems to be Early February 2018 it was around $6,200. Bitcoin’s price drops 50% in 16 days and falling below $7,000-
can you buy bitcoin
Absolutely you can, but that is not the question. The real question is should I buy Bitcoin, is it worth it? It seems to be falling and that’s not a good thing. It will more than likely stabilize like most things. It would have been a good idea to buy when it was in its infancy. However, there are other cryptocurrency out there that are new and in the process of becoming another BTC. There are actually too many to even list. If you would like to look up where you can invest in Bitcoin or other cryptocurrency I recommend www.Coinbase.com it is a great source which is Legit and easy to use, they also offer an App.
When buying Bitcoin or other cryptocurrency it is important to understand that this is an investment which should be done either through a professional, or if you are knowledgeable about the subject yourself. You could lose a lot of money if you do not known what you are doing or if someone is trying to part you with your money. I myself do not endorse any investments nor do I make any recommendations towards anything, this is just my opinion based on facts and research. If you would like to learn more about other ways to make money or if you want to work for yourself check it out.
So Why Did Bitcoin Get So Inflated?
Well, it’s a supply and demand type of situation. There is only a certain amount of Bitcoin mined, With a high demand for Bitcoin. With so many new corporation starting to accept Bitcoin it becomes a Hot Commodity, thus increasing it’s own value. This form of digital currency which was created to be held electronically with no one person to control it, Bitcoin’s are not printed like dollars or euros. Instead, they are produced using a long process called Mining Bitcoin, or writing Algorithm’s.
Bitcoin is Decentralized Which means no one person owns it, or a financial institution like a bank. Bitcoin was primarily created while on the verge of a financial collapse of the US market in 2008. Lehman Brothers took a fall during this time and everyone was in fear of yet another Great Depression, thus Bitcoin was born!
Do What Feels Right
Honestly I believe the whole Bitcoin Hype is exactly what it is, a Hype. Like the gold rush of the 1800s. A lot of people who were able to get in on the ground floor, at the beginning got rich! The ones that came after struggled and took what was left over. If it doesn’t make sense to invest in something you don’t really have the money for, then don’t. I known a lot of people “you might known some yourself” overnight became Bitcoin sales investors or marketers. They all told you to grab your cash and invest in anything or everything!
Trust me, do your research and think before you act. Please do not invest all your money with someone you don’t known or trust with the hopes of getting rich overnight. It doesn’t happen like that, the people who became rich with Bitcoin knew about this and made the right investment, or they did their own Btcoin Mining. Assuming you do known about the trading of cryptocurrency it is very possible to make great money, but if you do not known about the different cryptocurrencies offered then you should consult with a professional. Investing in cryptocurrency is just like investing in anything else on the stock market and should be treated as such.
I hope this information has helped you, If you have any questions please leave them below.
Author: Aaron Griffin