It’s evident throughout human history that ideas can turn into revolution. One idea of our time that has truly transformed into a revolution is the decentralized currency. Not too distant in the past, the idea of currency free from bank and government control was nothing but a far-fetched dream. But then came Bitcoin, with an idea behind it of decentralized currency. It created a stir which has turned into a storm. The year 2008 witnessed the birth of Bitcoin, the very first decentralized virtual currency. Thirteen years later, Bitcoin nourishes a vast ecosystem of innumerable decentralized transactions. Moreover, the blockchain technology that powers Bitcoin is poised to transform the financial world and how we exchange money.
It was Satoshi Nakamoto, an unidentified genius, who first presented the idea in a white paper. It focussed on a decentralized ledger system, termed as ‘Blockchain,’ to make online payments between two parties without proceeding through a financial body. Although the idea was interesting, it didn’t get enough attention initially, and Bitcoin was only of interest to the geek community and, of course, to antisocial elements, like hackers. It was the year 2013 when Bitcoin crossed $1000 and finally attracted the world’s attention at large, especially the financial institutions. While many considered it only a Ponzi scheme, Ben Bernanke, the then head of the American Federal Reserve, was optimistic about its potential.
Bitcoin had a turbulent childhood! Starting as a totally new concept, with very few recognizing the potential to becoming the star of the CryptoCurrency euphoria, Bitcoin has been through a lot of bumps. After the hacking of the MtGox platform, where up to 80% of Bitcoins in circulation were exchanged, the value of Bitcoin plunged to the ground, and investor’s trusts too. It took almost three years for Bitcoin to return to the level it was at the end of 2013. Large price swings have been a hallmark of Bitcoin throughout its nearly 13 years of existence. It has continued in the current year too. After reaching an all-time high of $ 64,895 in mid-April, the price fell by more than half in just five weeks.
The Crypto sphere is a busy place these days, with a new virtual currency making an appearance every other day. Bitcoin still holds the lion’s share of the cryptocurrency market. Although the initial idea was to make Bitcoin a medium of exchange, the majority of supporters recognize that it is mainly used as a store of value or an instrument of speculation due to its volatility. However, the world has recognized the potential of blockchain – the technology that powers Bitcoin. More and more organizations are now adopting it for a higher level of security and safer transactions. As more people and more organizations start to recognize and adapt to Bitcoin, it’s future indeed seems to be bright.