You can’t possibly miss Bitcoin out from the crypto party today as it holds the captain’s wheel for how much the other cryptocurrencies are worth. However, can we really fully appreciate cryptocurrency without some of the important to its status today?
The Birth of the World’s Most Influential Cryptocurrency
Enthusiasts have been following Satoshi Nakamoto’s movements closely but the truth is nobody knows for sure. But he sure have created the most influential cryptocurrency to date.
Bitcoin.org emerged in August 2008 and its white paper was published 2 months later that year. On January 3 2009, Satoshi mined the Genesis Block (Block 0) using a CPU and created the first 50 bitcoins. Mining back then was relatively easier because 1) there wasn’t competition 2) there wasn’t so many high-level mining hardwares available. As the creator of Bitcoin, we would think that it is really easy to mine the next block since he was the only Bitcoin miner then. However, it took him 6 days to mine Block 1. I think he probably wanted to address any vulnerabilities he missed out, but the real reason for this is really unknown. Unless you want speculations.
The world’s most expensive pizza
Another notable Bitcoin moment is the Pizza Purchase, completed by a Florida programmer Laszlo Hanyecz, paying 10,000 bitcoins for 2 large Papa John’s pizza!!
This is the first commercial bitcoin transaction to date, and it is a testament to Bitcoin’s mainstream value. Currently there are over 100,000 merchants supporting Bitcoin as an alternative payment mode, like OkCupid, Wikipedia, Shopify, Etsy, Bloomberg, Zynga, Expedia and more. This shows that the mainstream usage for Bitcoin is increasingly acknowledged over the years.
As much as not all consumers are well-versed with cryptocurrencies, platforms like Coinbase can reduce the barrier of entry and the trend can lean towards a greater wave of mainstream usage in the future.
Emergence of Silk Road
In the context of Bitcoin, the Silk Road is the first modern darknet market for drugs dealing, gun dealing and document forgery. The idea was implemented by Ross Ulbricht, who wanted to use the anonymity of Bitcoin transactions to protect the unlawful transactions on his site. Ulbricht was ultimately nabbed by the FBI for numerous crimes. There was an attempt to rebuild the empire, but the administrators ultimately met with jurisdiction and never succeeded.
There have been analysis to show that there is a positive relationship between bitcoin and the Silk Road business. Because of this association, forces of the Silk Road may have resulted in allowing bitcoin to reach the dollar parity with USD. Nevertheless, we can safely say that the rise in Silk Road transactions created greater demand for Bitcoin, and has as strong part to play in how Bitcoin is valued today.
The rise and fall in Mt Gox
Another major event in Bitcoin is the Mt Gox Exchange, as the saga caused the rise and fall in the Bitcoin value. Established in 2010, Mt Gox is one of the first Bitcoin exchange based in Japan and oversaw about 70–80% of the BTC transactions online. Bitcoin users entrusted their account with the exchange. A vulnerability in an auditor’s working computer led to a hack of the exchange in 2011, but the theft was only detected in 2014. The exchange lost 850,000 BTC (~7% of the market supply). Mt Gox eventually filed a bankruptcy protection in Japan and US thereafter the loss.
Ripple effects of this saga is still felt today. As much as this was one of the darkest period in Bitcoin, it is not completely without learning points. We learnt to be more careful with transactions and to not allow any one company to dominate the management of the transactions.
Legitimising virtual currencies
In April 2016, the Cabinet of Japan recognised virtual currencies as an alternative payment method. In the following year, Canada had their first approved cryptocurrency and are looking to recognise more in the following years. These are milestones for cryptocurrencies to move towards a greater mainstream adoption for daily transactions.
Initial Coin Offering (ICO) Craze
ICOs have a massive potential for the startups to raise money (even without their tokens being tied to a real asset), and allow them to sidestep some restrictions on their marketing strategies. The craze are followed by many insights and solutions being developed to mitigate the dangers and risks with investing in ICOs, and developing insights to how we can discern valuable ICOs.
One example of a valuable ICO would be Spiking, which aims to aspiring traders to get closer to perfect information for the most successful trading movements. It recognises that common investors like us are on the losing end compared with the stronger traders in the market. The Spiking app connects successful traders who have the best information to make investments with the aspiring ones, bridging the knowledge gap thus empowering them.
In closing, The aforementioned events are some of the defining moments in cryptocurrency. I believe there is more to come, given its volatile nature and the evolving complexities.
by John Foo, Supply Chain Associate
Drawing from its successful and rich experience in the stock market since 2016, Spiking is expanding to cryptocurrency trading! With its unique and powerful trading tool and its AI robot Robobull, Spiking enables traders to easily find whales and mirror the trades automatically. At Spiking, we strive to help traders make better decisions and take the steps toward fulfilling their dreams of achieving financial freedom. Check out Spiking App, Top Grossing Finance App at App Store & Google Play.
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Notable Events in Cryptocurrency was originally published in Spiking → Your Freedom on Medium, where people are continuing the conversation by highlighting and responding to this story.