Bitcoin is a cryptocurrency that allows people to trade online anonymously without having banks and governments to regulate and keep an eye on them. It is the most stable cryptocurrency on the market with millions of people using it every day.
There are many reasons as to why people are using Bitcoin and since this cryptocurrency is extremely popular, we wanted to take a closer look at it and explain its timeline as well as the advantages of using Bitcoin as a payment method. These days, several countries around the world have legalized Bitcoin and some of them are even actively participating in the trading process. But, things weren’t always black and white. Bitcoin had many ups and downs and they are worth looking at. Let’s start.
The Timeline
Many people don’t know this, but Bitcoin has been on the market for more than a decade. It was created in 2008 by a person whose identity is unknown to this day. The only known name for this person is Satoshi Nakamoto. What’s even more confusing, it is unknown whether Satoshi is a person or a group. Satoshi created Bitcoin’s website in 2008 after spending a year developing it.
The first transactions with Bitcoin were made in 2009 after Hal Finney purchased 10 Bitcoins from Satoshi. Even though Nakamoto claimed to be a 37-year-old Japanese male, many doubt this information due to his extensive and native-like knowledge of the English language. Furthermore, his software is not labelled in Japanese.
Bitcoin is earned through a process called mining. Even though the initial price for 1 Bitcoin was less than a dollar in the beginning, as time went on, it rose to power. Many websites were even created to help people mine Bitcoins and make a handsome profit. One of the most well-known sites for its success is the Bitcoin Era website. They have good guidelines and an extensive resume of making people rich.
This cryptocurrency was deemed illegal by many countries in the beginning for reasons we will explain later. That is why it dominated the black market. 2013 and 2014 were notable years for Bitcoin. During this period, its value started going up and it was around $700 for one Bitcoin.
As time went on, many people saw the opportunities that lie with this cryptocurrency, especially when it comes to making profits, which is why they started mining them. Bitcoin’s peak was reached in late-2017 after its value spiked in a matter of days and went over $19,000. But, several days after reaching that peak, it plunged and spent the next year and a half in the process of coming back to normal.
In 2019, Bitcoin finally stabilized and had an optimized value of around $8,000. Since then, numerous governments legalized it and contributed to its stability. Its hash rate has also been on the rise lately. The high hash rate along with its stability and volatility rate is the reason why some experts believe that its value will go up again and that we are experiencing the calm before the storm.
Most of the experts believe that its peak will be similar to the one in 2017 and that the price will be around $20,000, but some of them even believe that the price could hit $50,000. We are still uncertain about this, but time will tell.
Advantages of Using Bitcoin
Bitcoin has numerous advantages over the other payment methods and currencies, which is why it became so popular. First off, it is a highly decentralized currency that is self-sustainable. That means that no bank or government controls it. With that being said, people can go around many fees that banks are applying and save money in the process.
Most of the transactions these days are done online and Bitcoin is completely optimized for online use. Every transaction is instant, which makes Bitcoin far more efficient than other payment methods. It also provides traders with a certain level of anonymity, thanks to the digital wallets that are made to store Bitcoins.
Greater liquidity, lower general fees, ease of use, and 0 chances of theft are also among the biggest advantages of using Bitcoin. As we mentioned earlier, several countries around the world understand the potential that Bitcoin has, which is why they made it legal and even started participating in the process of trading.
