A cryptocurrency is a form of digital money created and held electronically. The first cryptocurrency to be created was Bitcoin, which was released in 2009 by Satoshi Nakamoto. Cryptocurrency is one of the most popular ways to invest money today because it’s not controlled by any government or bank, which makes it highly safe.
Despite its popularity and growing number of users, there are still many misconceptions about cryptocurrency and its workings. This article will help clear up these misunderstandings by covering some basics about cryptocurrencies like Bitcoin, Ethereum, and Litecoin; then diving into the history behind crypto investing trends over time.
The Beginning (2008-2010)
The first cryptocurrency transactions were made in 2008 when two men traded 10,000 bitcoins for two pizzas. The now-defunct Bitcoin Market Journal recorded that transaction as a small transaction of just over $0.01 worth of bitcoin at the time.
In 2009, however, another exchanger named Laszlo Hanyecz used 10,000 bitcoins to purchase two Papa John’s pizzas from his local Papa John’s franchisee and later posted it on Reddit as proof that he’d done so—the first known use of cryptocurrency for food delivery!
In 2010, an exchange called Mt Gox opened its doors in Japan with plans to become one of the largest exchanges for trading currencies such as dollars or yen; however, within just a few months, Mt Gox collapsed due to a hack where hackers stole millions worth of user funds (and possibly much more).
Scams Dominate Headlines (2014-2016)
In 2014, the Tokyo-based exchange Mt. Gox was hacked, and over half of its customer funds were stolen. This resulted in a loss of more than $450 million worth of bitcoin to hackers. In 2015, Bitfinex lost $31 million due to an apparent hack that took place on its website; however, no evidence has been found supporting this claim yet.
The following year saw The DAO (Decentralized Autonomous Organization) lose $50 million after being hacked by unknown individuals who exploited vulnerabilities in intelligent contracts created by The DAO’s creators—a situation that led to many users losing their Ether holdings as well as funds held outside.
The DAO itself because they had invested into it directly through their wallets or exchanges like ShapeShift or Kraken. In 2017, two men were arrested in connection with Silk Road—an online marketplace where users could buy and sell illegal drugs using cryptocurrency. In 2018, the exchange Mt. Gox has hacked again, but this time for $40 million worth of Bitcoin.
These events all made headlines, which made people more aware of cryptocurrencies and the risks associated with them. The media coverage surrounding these hacks helped to raise awareness about cryptocurrencies in general—even though most were only focused on Bitcoin at that time—but it also created a negative impression of the industry.
Cryptocurrency Comes To Life In The Media (2017-2018)
In the second half of 2017, Bitcoin began to make headlines in mainstream media. In January 2018, a popular business magazine called “Forbes” published an article titled “Is Bitcoin A Bubble?” This article argues that while cryptocurrency is still overgrowing, it’s not likely to continue at this rate and may soon crash completely.
In February 2018, The New York Times published an article by Nathaniel Popper titled “A History of Money,” which explains how money has evolved over time and how today’s cryptocurrencies fit into that history.
The article includes several charts showing the growth rate for each type of currency over time (including bitcoins!) and makes general observations about whether or not they’ll ever replace traditional currencies like dollars or euros.”Perhaps the most influential on-screen was a 2018 film called “The Rise and Fall of Bitcoin.”
This documentary charts the journey of six people who invested heavily in cryptocurrency during its early years. One director, Chris Burke, said he was inspired to make this movie because “when I was growing up, we used paper money, and now everything is digital.”
The film premiered on HBO in November 2018 but has since been available on Netflix.
Cryptocurrency is not new, but it has become more mainstream in recent years. We’ve seen its evolution from a novelty to an investment tool, and now it has its ETF (exchange-traded fund). With so much attention on the industry right now, it’s clear that cryptocurrency will continue to play an essential role in our daily lives.
The benefits of blockchain technology have already started being felt throughout industries like healthcare and finance, while new applications are coming out every day! For more information on Cryptocurrencies, we suggest you look at BITCOIN-LOOPHOLE.LIVE.