All the great inventions of humanity have a genius behind them. Electricity was patented by Edison, cinema by the Lumiére brothers, and Bitcoin by Satoshi Nakamoto.
If you’ve ever wondered how cryptocurrencies came to be, it’s time to learn what’s behind them. After all, it’s one of the most important innovations of the 21st century, and the history books of the future will be talking about it.
We will tell you all about it!
How did cryptocurrencies come about?
Bitcoin was the technology that drove the emergence of the following ones, such as Ethereum or Cardano. To talk about the origin of cryptocurrencies, we have to go back in time to 2008.
The genesis of cryptocurrencies appeared in 2008. During the great global financial crisis, Satoshi Nakamoto, a person or a group of people of unknown identity, presented a document that would change the history of investments.
On November 1st of that year, he published a file entitled “Bitcoin: A Peer-to-Peer Electronic Cash System”. His creation was distinguished by being a decentralized payment system. Unlike other traditional currencies, Bitcoin does not have an issuer. It is generated through specific algorithms.
These algorithms are extremely difficult to crack. Therefore, the task of mining Bitcoins is complex. It takes a lot of technology to create units of Bitcoins, as each coin is made up of a series of computer-generated codes. This protocol makes the system efficient and secure.
In the same way, Bitcoin was created to avoid inflation. Unlike other currencies in circulation, Bitcoin will reach a maximum limit of units issued. There can be no more than 21 million units in the market. Approximately, that will occur in the year 2140.
The first Bitcoin and what came after
Well, from Satoshi Nakamoto’s official document to the creation of the first Bitcoin took about a year. On January 3rd, 2009, the first 50BTC block, known as Genesis, was born. At that time, each Bitcoin unit was worth nothing. Today, we know that it costs thousands of dollars.
Since then, Bitcoin has started to become more and more popular in society. It is no longer a niche investment, but more and more people know about the existence of the Bitcoin world. But that’s not all: different cryptocurrencies also started to emerge. For example, Dogecoin (2013), Ethereum (2015), or Cardano (2017) made their appearance, among others.
Best of all, it’s a trend that will undoubtedly continue to grow over the years. Different cryptocurrencies are likely to emerge that promise to be the “new Bitcoin”. Therefore, it is relevant to keep an eye on all of them to find good investment opportunities.
Now, you know more about the creation of cryptocurrencies. You can continue reading more content from our blog and our Blockchain development services to learn more about other topics in the digital world.