CTO 101 — S02: Blcokchain — Chap02: Bitcoin

CTO 101 — S02: Blcokchain — Chap02: Bitcoin

Even though majority of people think blockchain, the technology behind bitcoin was started with Satoshi paper but the fact is blockchain concepts dates back to a decade before, the concept of secure chain of blocks was discussed by Stuart Haber and W. Scott Stornetta in 1991 but eventually what made this concept a breakthrough was the paper of Satoshi Nakamoto published in 2008 with the title of “Bitcoin: A Peer-to-Peer Electronic Cash System” and it led to creation of famous digital currency which for the first time solved the problem of digital money double-spending in a decentralized system. So far there is no clear evidence who is Satoshi Nakamoto but there are rumors around the internet about the identity of this person.

So, this enabled a fully decentralized and anonymous payment system based on the blockchain. At early days it was mostly the mean of the transaction for criminals and the currency of the infamous Silk Road darknet market(Closed 2014) but slowly people are realizing it as a secure, robust and international currency that governments can’t affect it much.

A short history of Bitcoin valuation:

2009-Jan: The genesis block first block of a block chain got created. The price is estimated and gathered using different resources!

2009-Oct: New Liberty Standard Publishes First Exchange Rate. 1$ = 1,309.03 BTC followed by First Bitcoin to Fiat currency at rate of 1$ = 1006 BTC

2010-May: Two pizza (25$) for 10,000 BTC. 1$ =400BTC, I got to know BTC somewhere around this time.

2011-Feb: Parity with US$ and surge on attention. 1$=1BTC

2011-Jun: Silkroad Era. 1BTC almost 20$.

2011-Dec: Increase in popularity, for the first time a TV show featured Bitcoin but the bubble was burst it surges back to 5$.

2012-Nov: Uncertainty Times, even though BTC was getting more and more popular the price wasn’t getting more than 15$, Still, you would hear people are talking about things like governments gonna ban this.

2013 Mar: Cyprus effect following €10 billion bailouts of European union many people in Cyprus started to buy BTC and it increased the price up to $200.

2013 Nov: US Senate and People’s Bank of China get to know about it. 1BTC = $1075.16.

2015 Jan: Lots of things happened in 2014 but majorly negative: Chinese Ban, Taxation over Bitcoin, DDOS attacks, Money laundry accusation, Closing Silk Road. All and all again negativity was circling around the community. 1BTC = $200.

2015 Oct: No VAT on Bitcoin Trades in Europe. 1BTC = $320.

2016 Oct: It was gaining more in popularity and value from this point of time till today price increase has been enormous. 1BTC = $600.

2017: Explosion up until May the price was increasing in a linear form but since may Bitcoin has broken all the boundaries and reach over 4500$ at the current time.

Bill Gates about Bitcoin:

https://www.youtube.com/watch?v=k0HmrSfJwhU

Barack Obama about Bitcoin:

 

You can earn Bitcoin by mining and providing proof of works. As trends show investment on it still can be super beneficial but it is good to know that now it is not alone there are 100s of crypto currencies out there trying to attract people’s attention.

I believe it’s beneficial for all decision makers to take a good look at bitcoin and possibly use it as a supported currency, this can save international exchange costs or it can facilitate anonymous buying or it can just create loads of exposure for your business since still, you are one of the few who supports Bitcoin.

Please share this and check out the other blockchain related contents:

 

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