Cryptocurrency’s first step: A “Bitcoin story” — Part 1

Photo by Kanchanara on Unsplash

Today I’m going to introduce you to the first chapter of cryptocurrency, “What is Bitcoin?”

Before I start, I’ll discuss about: Coin VS Blockchain

First of all —

Coin = finance

Blockchain = technology

Simple, right?

I plan to discuss mostly about coin, so I’ll discuss about the technology part another time.

Hence, let me begin:

This blog contains the timeline ranging from its beginning to 2016, before the 2017 price hike during second quarter. (Look forward to the story after 2017 in our next blog!)

2009: Bitcoin’s birth started as $0. With its birth, a Bitcoin white paper was released on October 31 after the famous financial crisis in the United States, the Lehman Brothers Bankruptcy. In that white paper, the presentation of the concept of Defi, a cash payment service, was released along with it. (I’ll explain the concept of Defi in another article.)

2010: Bitcoin is traded for the first time (price: $0.09).

In the following year, its trade starts in the world’s largest bitcoin exchange, “MT.GOX.”

In May, Gavin Andersen, the chief developer of Bitcoin, held an event to distribute Bitcoin for free under a project called the Bitcoin Faucet. (If only I’d met him then, haha.)

Photo by Sharon McCutcheon on Unsplash

2011: Bitcoin’s first transaction starts on the Silk Road with drugs (price increase from $1 to $29.60), and from then on, prices began to form in proportion to the mining unit price.

It is said that blockchain was searchable for the first time in Baidu, China.(If so, was it impossible to search it before? This I’ve only heard about it, so I wouldn’t know.)

You may wonder why the word “first” keeps coming out, so I’ll explain additionally. It hasn’t been long since the Bitcoin started, so all transactions are considered first. In case you are confused, first is the right word in most situations.

2012: Bitcoin is applied to half-life (price: nothing specific).

Because of this half-life of Bitcoin, something called the “Bitcoin Mining” starts.

Just like the concept of coal digging in the mountains, Bitcoin is like mining with a computer program, and in short, it’s like putting a puzzle together. (However, if it’s too easy, anyone can take it, so the difficulty level of the puzzle has been increased, hence there will be fewer people who want to do it, haha.)

Photo by Xavi Cabrera on Unsplash

As a result, the value of coins has increased, and the half-life of Bitcoin has entered.

This is when tethers start to be directly related to DALLA. (the standard point of cryptocurrency has been created!)

2013: Bitcoin prices soar (price: from $13.28 to $230 — 5248%, but dropped to $68.50 in the middle).

Prices fluctuated a lot that year, but some important events happened concerning Bitcoins:

  1. Chinese miners set up a company called “Avalon” to mine with ASIC (order-type semiconductor) chips.
  2. Baidu, China, has a new function that allows to pay using bitcoin.
  3. A new Bitcoin version 0.8 was released, which meant that a system that allows Bitcoin to make large-scale transactions on the Internet was completed.

This is what I think: (This is a very important thought, since I believe there is a time for everything.) If Bitcoin and Metaverse appeared during the 2G phone era…I don’t think it would have been commercialized at all. Someone during that time might have thought this already, that its systemization would be impossible, so they’d have to wait until the advancement of the 5G and 10G network systems. (That’s why I think the Bitcoin version 0.8 is a very important event.)

Now back again,

4. Cyprus financial crisis (Why did this affect the surge in bitcoin prices?)

  • There was a loss burden on depositors and suspension of capital outflows in bank bailouts.

In the end, you can’t trust a country’s bank. It’s linked to Bitcoin demand.

5. Mr. and Mrs. Craig released a film about living with Bitcoin for 101 days.

Bitcoin’s cross-border movement and exchange functions are known, which is another reason why bitcoin prices are rising.

6. In October, the FBI arrested Ross Ulbricht for drug trafficking on the Silk Road. There was also an incident where Bitcoin was confiscated from the PC.

7. The bankruptcy of the first Bitcoin exchange “MT. GOX” and the overheated market returns to a cooler period.

2014: There was a slump due to some changes and prices in the government. Due to this,

  • New York authorities pushed for Bitcoin licenses.
  • Winklevoss Brothers announced Bitcoin investment and moved away from interest.
  • A Russian-based Canadian professional gamer and founder of Ethereum — Vitalik Buterin — released a white paper titled, “Next Generation Smart Contract and De-neutralized Application Platform,” and released a blockchain-based cryptocurrency and platform, “Ethereum.”
Photo by DrawKit Illustrations on Unsplash

2015: Bitcoin became a subject of speculation and recognized its limitations.

This situation:

Bitcoin has become a target of interest and speculation on yuan-denominated assets as the risk of capital outflows in China greatly escalated.

Although it was a year of receiving the spotlight, the limitations of Bitcoin were also recognized.

The limitation remains in the currency trading system, and it is too slow, because only one bitcoin block is formed every 10 minutes. It is evaluated that the transaction processing ability is limited.

And at this time, Ethereum, the second cryptocurrency, begins to determine the dollar-denominated price on the cryptocurrency exchange.

Thank you so much for reading though the whole thing. The organized information about Ethereum will be uploaded separately, so please look forward to it!

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