Bitcoin Will be 10 years Old October 31, 2018October 28, 2018
Bitcoin, the world’s first cryptocurrency will be turning 10 years old on October 31, 2018. The zeroth moment of the decade is filled with mixed investor sentiments.
Following the 2017 price volatility, investors from around the world are looking at the cryptocurrency as a complex financial strategy. They are viewing the currency with a suspicious look.
Cryptocurrency is the brainchild of Satoshi Nakamoto. The crypto was first suggested during the global financial crisis by Satoshi Nakamoto. Bitcoin established a political vision for the cryptocurrency.
The price of Bitcoin at its starting point virtually zero and now it trends at $6400 per unit. This was a peer-to-peer version of electronic cash which permitted online payments in a way that it can be sent directly from one party to another. And this transaction can happen without the intervention of a financial institution.
For over a decade now, the peer-to-peer transaction is being carried out via the decentralized registry that is known as the blockchain.
Pierre Noizat, founder first French Bitcoin Exchange in the year 2011, stated “The vision for cryptocurrency was triggered by the recession period when the US Investment Bank Lehman Brothers filed for Bankruptcy in 2008. This event led to the traditional system of bankers to lose their credits. Those elite groups of bankers who decided on the financial rules to be imposed on the rest of the society being discredited led to a loss of trust.”
The Bitcoin evolved for many years away from the eyes of the public. The coin grabbed the attention of several geeks and criminals. The criminals considered the cryptocurrency as a way in which they can launder their money.
The value of the Bitcoin surpassed the $1000 value for the first time in the year 2013. They began attracting the financial institutions.
Bitcoin was compared to a Ponzi Scheme by the European Central Bank. Ben Bernanke, the head of US Federal Reserve; however, welcomed its potential.
The cryptocurrency faced its biggest crisis in the year 2014. This happened when the hacking of Mt Gox Platform of Japan took place. This was where about 80% of all the Bitcoins were traded.
The value of the Bitcoin collapsed them, and it led to the death of the Virtual Currency. It took until the year 2017 for the price of Bitcoin to completely recover. The price rocketed to $19,500 per Bloomberg data by the end of the same year.
The total capitalization of Bitcoin was more than $300 billion. Before the recent bubble burst the recent value of all the cryptocurrencies in the market crossed $800 billion.
The digital currency concept has now spread virally, and there are more than 2000 rivals to Bitcoin in the form of Altcoins or different cryptocurrencies.
Cryptocurrency is a technological innovation that is slowly transforming the Fintech Industry. And, it has become a religion for several investors.
While economist Nouriel Roubini feels that decentralization in crypto is a myth, Noizat is of the opinion that it will take at least 20 years for this kind of technology to establish a hold in the market.