History of Bitcoin and Its Future

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The history of bitcoin is very interesting and you would love to know about that. A lot of different questions arises that how it all started. We will discuss the brief 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 that it is regulated by a third party authority, which are banks having a centralized control. No need to mention it is still a big problem to address.

Bitcoin History – DigiCash

For the purpose of setting up e-cash method, he founded a company called Digi cash. Unfortunately, this idea didn’t get much attention due to various 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 which led the computer scientists in developing a new technology which is known as Blockchain today.

We can say that Blockchain 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 in 2008,  when a white paper published 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 mined which was known as Genesis Block based on the emerging technology nowadays Blockchain.

This is how it became 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 genesis block was almost zero and it’s almost $10,400 dollars as of September 2019. See the bitcoin history price statistics below.

bitcoin price history chart

Bitcoin Price History Chart

The Future of Bitcoin

As you have seen the bitcoin valuation history, let’s see its wider picture and jump on to its future. It has been almost 10 years since the development of bitcoin and other cryptocurrencies. There are rumors that Bitcoin will take over the traditional currency soon. It will not only decentralize the whole mechanism of payments but will also change the way of purchasing and selling.

Certain world level giant companies of the world are making a lot of implementation and adoption.  Due to the fact that it has 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 the 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

Statement of Bank Of America

Bank Of America

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

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