Everything you need to know about bitcoin

The first bitcoin investors got a godsend when the cryptocurrency soared to an all-time high in April.

It was at this point that many who had not yet invested in them began to see an opportunity to secure and accelerate the growth of their wealth.

However, with little knowledge of digital assets at the time, the early investments were just as dangerous.

Those who took risks, on the other hand, were richly rewarded. Bitcoin, which was already the oldest cryptocurrency in the world, achieved unprecedented popularity.

Despite being a volatile currency, according to market analysts, it appears to have stabilized at USD 40,000 (about 29.7 lakhs) for the time being. Check out the more than decades-long journey Bitcoin has taken to get where it is now. Find out about the top 10 Bitcoin alternatives in 2021

Bitcoin history

After Bitcoin was first proposed in 2008, there were many puzzles around it, the most notable of which was the identity of its developer Satoshi Nakamoto, a pseudonymous person whose real name is still unknown.

Nakamoto circulated a document entitled Bitcoin: A Peer-to-Peer Electronic Cash System to a cryptography email group claiming to be the author.

This attracted a lot of attention and sparked a heated discussion about it on the Internet. On August 2nd at 7pm IST the price of Bitcoin in India was Rs. 29.18 lakhs (approximate).

The Bitcoin program was first made available to the public in 2009. At this point, mining began, the process by which new bitcoins are produced and exchanged on the blockchain.

Bitcoin’s value was determined in the next year, 2013. Until then, Bitcoin was only mined; no one had ever exchanged it, which made it impossible to determine the true value of the coin.

On May 22, 2010, programmer Laszlo Hanyecz exchanged 10,000 bitcoins for two pizzas, a transaction that went viral. If he had been able to satisfy his pizza hunger, those bitcoins would have been worth $ 389 million (approximately Rs.2,890 billion) at the time of writing. At least the episode led to “Bitcoin Pizza Day”.

The dominance of the market that Bitcoin had conquered by then was first called into question in 2011.

Around the same time, some bitcoin competitors such as Namecoin and Litecoin popped up. These competing currencies claimed to provide improved services, including faster transaction speeds.

According to CoinMarketCap, a market research website, there are more than 11,000 cryptocurrencies in circulation at the time of writing.

This phase in Bitcoin’s history was marked by some of the most tumultuous moments in its existence.

Bitcoin’s value collapsed for the first time in 2013, three years after the cryptocurrency was first valued. Bitcoin had already passed the $ 1,000 mark (around rupees 74,380) by this point, but the price continued to fall rapidly, eventually falling to around $ 300. (approximately 22,310 rupees).

Mt.Gox, the world’s largest Bitcoin exchange, was unexpectedly taken offline in January of this year. It also caused the disappearance of 850,000 bitcoins, and the owners of those bitcoins were never informed of what happened to their bitcoins.

On March 20, 2014, Mt. Gox said it discovered 199,999.99 bitcoins in an old digital wallet, reducing the total number of bitcoins the company had lost from 850,000 previously to 650,000. The investigation into the incident is still ongoing.

Bitcoins first regained their value of $ 1,000 (around Rs.74,380) in 2015.

In the next year, Ethereum emerged as a major competitor to Bitcoin’s market dominance. However, Bitcoin has grown in popularity to the point where it neared the $ 10,000 (about 7.4 lakhs) level in late 2017.

More and more people became committed to the ecosystem and invested their money in it. By the end of this year, the total market capitalization of all cryptocurrencies had risen from $ 11 billion (about Rs. 81.820 billion) to more than $ 300 billion (about Rs. 22.31.640 billion).

Current status

Another drop in the value of Bitcoin came in early 2018, when many nations made efforts to strengthen regulatory scrutiny over cryptocurrencies.

Bitcoin’s value has fallen by more than 80 percent during this period. Even in India, the Reserve Bank of India (RBI) issued a notice banning banks from trading cryptocurrencies or allowing cryptocurrency transactions.

That year also saw one of the largest cryptocurrency heists in history. By scamming investors, the BitConnect scam siphoned off $ 2 billion (approximately 14,880 billion rupees).

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The beginning of 2019 was rather calm. Bitcoin, on the other hand, approached $ 8,000 (about 5.9 lakhs) in May.

The company then suffered a loss of nearly $ 1,000 (approx. 74,380 rupees) in June, only to recover to $ 14,000 (approx. 10.4 lakhs) by the end of July. This year has been a reasonably successful year for cryptocurrencies.

The next year, during the 2009 pandemic, Bitcoin was still viewed as a fringe investment by the likes of Warren Buffet, who declared that it had “no value”.

But by the end of the year, Bitcoin’s value had nearly doubled, reaching an all-time high of more than $ 28,000. (approximately Rs. 20.8 lakhs). In May 2020, the Supreme Court of India overturned the Reserve Bank of India’s cryptocurrency circular.

So far this year, Bitcoin has been on its own roller coaster ride. For its first few months, it garnered the support of popular Elon Musk, who subsequently switched his support to Dogecoin after environmentalists raised concerns about the environmental impact of Bitcoin mining.

Bitcoin saw a huge drop in value in May after hitting a record high of $ 65,000 (about 48.3 lakhs) in April. On Monday, August 2nd, the stock had rallied to some extent and was trading at around $ 40,000 (approximately 29.7 lakhs) per share.

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