The history of bitcoin is very interesting and crucial to know. A lot of different questions arises that how it all started. We will discuss the history of bitcoin and its future in this article. It all started in 1982 when David Chaum, an American computer scientist first proposed the concept of e-cash.
The main idea of David Chaum was to make payments done online through digital cash, he called it e-cash without any centralized control of any bank.The problem with the current traditional currency was and still now is that it is regulated by a third party authority, which are banks having a centralized control.
For this purpose, he founded a company called Digi cash. Unfortunately, this idea of him didn’t get much attention due to some reasons. The main turn off of this idea was that it still needs a centralized authority or centralized clearing house to regulate the payments. The Company was bankrupted in 1998.
The idea of an e-cash by David Chaum redirected the computer engineers and scientists in a new direction although it didn’t work out at that time. The concept decentralized e-cash let the computer scientists in developing a new technology which is known as Blockchain today.
We can say that Blockchain was born with the concept of decentralized digital cash back in 1982. The Concept of e-cash better known as digital cash suddenly got a lot of attention again when in 2008, a white paper was published by the title Bitcoin: A Peer to Peer Electronic Cash by a person
called as Satoshi Nakamoto. It’s a pseudo name of a person, his actual identity is still unknown. In 2009, the first-ever block of bitcoin was mined which was known as Genesis Block based on the emerging technology nowadays Blockchain.
This how it becomes the first-ever decentralized digital currency better known as Cryptocurrency. Bitcoin was the very first technology product of Blockchain, just like the Email which is the first product of internet technologies back in the late ’90s and early 2000.
The cost of Bitcoin was genesis block was almost zero and it’s almost $10,400 dollars as of September 2019. See the statistics below.
The Future of Bitcoin
As it has been almost 10 years of the development of bitcoin other cryptocurrencies. There are rumors that Bitcoin will take over the traditional currency. It will not only decentralize the whole mechanism of payments but also change the way purchasing and selling.
A lot of implementation and adoption has been made by certain world level giant companies of the world, because of some unbreakable powers of Blockchain technology which makes it almost impossible to hack.
Many multinational brands like Nestle moved their system to blockchain. You can purchase products in terms of bitcoin at eBay and Amazon. A lot of people are confused that Blockchain and Bitcoin are the two names of one thing which is cryptocurrency.
But that’s not the truth. Blockchain is a highly secured technology, which records transaction in a virtual ledger on every participant’s node (system) in a system which makes it highly secure.
I will not go in detail in this article about how Blockchain technology works. But as Bitcoin is based on Blockchain technology, it was important to acknowledge why the whole world is crazy about Bitcoin and the related technology Blockchain. Of course there are some other benefits of blockchain.
According to the statement given by the Bank of America back on February 23, 2018
Cryptocurrencies Are A Threat To Its Business Model
The bigger picture is that Bank of America is scared that people will invest their money in businesses based on cryptocurrencies. If they do so, then it will be a threat to their business model based on traditional currencies.
However, Bank of America is considering to implement the blockchain technology to make their system more secure and transparent.
You can read more about the statement here