The history of crypto is actually quite brief. Indeed, we had digital currency systems prior to the creation of cryptocurrencies, but they are not the same.
Former digital currencies were strictly centralized, whereas newer kinds of cryptocurrency, such as Bitcoin and Ethereum, are decentralized.
Who Was the First to Propose the Concept of Digital Currency?
Our tale began in 1983 when David Schaum, an American computer scientist, proposed the concept of encrypted electronic money (e-cash). He finally launched DigiCash, an early type of digital cash.
Microsoft offered Schaum $180 million for his company in 1997, but he declined. Despite the fact that DigiCash went bankrupt in 1998, Wired magazine labeled Schaum the father of online anonymity, in 2016.
When Did Online Payments Become Popular?
Consumers will soon have more payment options than they have ever had before. PayPal, a financial technology (fintech) start-up, established a web-based payment mechanism via email in 1998, based on Schaum’s concept of electronic money.
Soon after, PayPal formed a collaboration with eBay, the world’s largest e-commerce website, and by 2004, PayPal had generated $1.4 billion in yearly revenue.
Cryptocurrencies Rise with the Birth of Bitcoin
What’s fascinating about cryptocurrencies is that they were never supposed to be invented in the form that they are now. It all started with Satoshi Nakamoto, the creator of the now-famous Bitcoin.
In the beginning, Nakamoto’s ambition was to establish nothing more than an electronic peer-to-peer currency system. People have tried to build some type of online digital cash system for a long time, but they have always failed to owe to centralization difficulties.
Satoshi Nakamoto saw that trying to develop another online centralized cash system would only lead to failure, so he chose to design a digital payment system with no centralized authority. As a result, Bitcoin was born.
Yes, Satoshi Nakamoto created Bitcoin, the world’s first decentralized digital currency with no central authority to manage or control it. Bitcoin was supposed to be owned by the whole Bitcoin community.
When Satoshi Nakamoto launched Bitcoin in 2008, its value skyrocketed. It was just worth a fraction of a cent when it was initially produced.
However, the value of Bitcoin swiftly increased, and by late 2009, a single Bitcoin was worth $27. In 2017, a single Bitcoin was worth over $7,500, demonstrating that the value of this cryptocurrency has surged to incredible heights.
To return to the beginnings of Bitcoin, Nakamoto’s main concern was how to prevent double-spending, which occurs when a currency owner spends the same amount of money twice.
Previously, the central authority had complete control over the spending and amount of cryptocurrencies existent in the digital world, which is why digital currencies were always centralized.
It was a means to ensure that no money was spent twice. Nakamoto figured out how to make digital money without the need for a centralized authority.
In order for a decentralized digital currency system to function, every user or entity must agree on every account balance and transaction.
Nevertheless, Nakamoto was able to develop a cryptocurrency system that requires perfect unanimity from all parties, and if there is any disagreement between them, the system will collapse.
All of this may appear to be extremely intricate and practically impossible to carry out, yet Nakamoto and his development of Bitcoin proved everyone incorrect.
Bitcoin and other cryptocurrencies show that no central authority is required to manage spending and account balances as long as all parties involved are in complete agreement.
When Did Cryptocurrencies Start to Scale?
Cryptocurrency continues to pique people’s curiosity around the world, and by 2013, Bitcoin had over 11 million coins in circulation. Bitcoin’s market value crossed $1 billion when its price reached $92.
There was also a newcomer on the scene.
Ethereum was founded in 2013 by Vitalik Buterin, a 19-year-old programmer. ETH is based on Buterin’s novel blockchain, which allows the currency to be programmed and is used to enable smart financial contracts in 2015.
When Did Cryptocurrency Become a Global Thing?
Throughout 2016, the cryptocurrency business grew in popularity, but in 2017, the world took notice. Bitcoin’s value soared to nearly $20,000 in a few days.
Ethereum soared as well, starting the year at $8 and ending the year at $755 – a return on investment of almost 9,000 percent. On Google Trends in December 2017, the search phrases Bitcoin and Ethereum both hit all-time highs.
Interestingly, https://immediate-edge.io/ has a dedicated section where it shows visitors the historical performance of top cryptocurrencies. So, in case you want to have a look, that’s a good place to start.
When did governments start regulating cryptocurrency?
New regulations that acknowledged the expanding asset class was buried behind the headlines. The Financial Crimes Enforcement Network (FinCen) of the United States issued one of the first policies in 2013.
The Treasury Department is a government agency. Businesses that engage in specific virtual currency operations must register as money services businesses and adhere to anti-money laundering regulations under these guidelines.
The New York Department of Financial Services (NYDFS) followed suit in 2015, enacting a rule requiring virtual currency enterprises to get a BitLicense. The Japanese government then established the Japan Virtual Currency Exchange Association (JVCEA) in 2018 to regulate the business.
When did multinational corporations first enter the cryptocurrency market?
Multinational firms joined the crypto market as regulators became more involved. Samsung created processors designed for bitcoin mining in 2018.
Ripple partnered with Santander, a worldwide bank, to make international money transfers easier. Citigroup, Goldman Sachs, and J.P. Morgan Chase are among the top financial firms in the United States.
Morgan Chase, JPMorgan Chase, and others have all announced aspirations to enter the crypto sector in 2019. By 2020, more customers throughout the world will have access to digital assets than ever before.
Since Nakamoto’s incredible invention, hundreds of alternative decentralized cryptocurrencies have been produced by various parties.
Moreover, Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, Dash, NEO, NEM, Monero, and a variety of other cryptocurrencies are among the most popular and highly valued cryptocurrencies at the moment and can be traded with the help of the platform.
Now that cryptocurrencies like Bitcoin have demonstrated their value, ability to operate in the real world, and purchasing power, a growing number of banks, financial businesses, trade organizations, and shops have begun to accept them as legitimate forms of cash and payment. As we move on with our everyday lives, the history of cryptocurrencies is still unfolding.
