As of June 1, 2018, the market capitalization of Bitcoin stands at $126,792,543,902.
First of all, let me just say that cryptocurrency history is an under-acknowledged history. Nevertheless, it’s something that we should be discussing with relatives and teaching our kids in school, etc.
Why? Certainly the future depends pretty heavily on innovative and virtual cryptocurrency. Consequently, it’s something that we should all understand.
Cryptocurrency is important to our economy.
It’s important to each individual country’s national currency.
Above all, it’s important for the future and our children’s (and grandchildren’s) financial well-being.
In fact, if you had invested $1,000 in Bitcoin at the first available moment, your investment would be worth more than $48,990,830.
Probably something we should wrap our heads around, yeah?
Most noteworthy from this period of cryptocurrency history was the fact that there were multiple attempts to create one. In contrast to Bitcoin, however, these attempts failed. Almost no one remembers these attempts, with the small exception of B-Money and Bit Gold.
As a result of these failures, the paper titled Bitcoin – A Peer to Peer Electronic Cash System was posted to a mailing list on cryptography.
Even now, nobody knows who posted the paper, although someone going by Satoshi Nakamoto takes credit.
Beginning of Bitcoin
The year was 2009 (earlier than you thought, right?). Bitcoin software and Bitcoin mining (process of verifying transactions) is made available to the public.
By 2010, someone had decided to try and sell some. Probably not the best idea, considering two pizzas were worth around 10,000 (now worth more than $100 million).
One year later, rival cryptocurrencies began appearing. By the end of 2011, more than 1,000 cryptocurrencies (Litecoin and Namecoin among them) were in circulation.
Bitcoin Bites the Dust
In 2013, Bitcoin reached $1,000 in value for the first time. As a result, its value crashed almost suddenly down to $300, costing many investors a fortune. It would take more than two years for the value to rise past its previous high again.
By 2014, Bitcoin theft and scams became prevalent. In January of that year, the biggest Bitcoin exchange the world had ever scene experienced an error, causing more 850,000 Bitcoins to simply vanish.
There are still investigators trying to understand exactly what happened during the transaction. At the time, the Bitcoin were valued at around $450 million dollars. Today, they would be worth $4.4 billion.
Cryptocurrency in Recent Years
Moving forward into 2016, one cryptocurrency began catching the attention of investors and potential investors alike. This was the Ethereum platform (CLICK HERE to learn more about Ethereum), and it had begun gaining a lot of traction.
Furthermore, 2016 also marked the arrival of Initial Coin Offerings (ICOs), or the option to invest in different types of cryptocurrency right when they hit the market. As a result of this, the United States government began warning of cryptocurrency fraud and investment schemes, but did not regulate. In contrast, the Chinese government banned cryptocurrency all together.
As a result of its growing popularity, Bitcoin reached a value of $10,000 by 2017, and only continues to grow in value. Consequently, even banks as big as Barclays and Citi Bank are investigating ways of getting in on the cryptocurrency action.
In conclusion, cryptocurrencies like Bitcoin and Ethereum are here to stay.
Contact us to learn more about cryptocurrencies and how they fit into day trading.