Bitcoin’s Rise to Cryptocurrency Supremacy

Bitcoin’s Rise to Cryptocurrency Supremacy

By: William McCormick - Posted in:
Scattered Bitcoins representing Bitcoin's rise to cryptocurrency supremacy

Why Bitcoin is the Most Relevant Cryptocurrency

WealthHunters has looked into the creation of cryptocurrency.  Chances are if you’re unfamiliar with cryptocurrency, you have still heard of it or want to know how to buy Bitcoin yourself.

Learning the history of Bitcoin is essential to understanding cryptocurrency because Bitcoin is the coin that revolutionized the world by introducing blockchain technology. You will learn about Satoshi Nakamoto and the many theories behind the cryptocurrency’s creator. Most importantly, you’ll learn Bitcoin’s price history that made it the financial superpower it has become today and how to buy and exchange Bitcoin yourself before most of your friends.

What is Bitcoin?

Bitcoin is a decentralized currency that regulates a payment network using blockchain technology to exchange various types of digital tokens without a central authority.

In layman’s terms, Bitcoin (BTC) is a non-traditional digital currency that is broken into digital tokens and a complicated payment network using blockchain technology. There are no bills or coins to carry around in your wallet, but people are accepting Bitcoin to be as legitimate a currency as the paper and metal coins in your pocket. The difference is trading BTC through peer-to-peer transactions without a central bank or authority.

Proof of work” is the concept the entire platform is built upon. At its simplest form, BTC is just code and data. The blockchain network uses proof of work as an algorithm to make all transactions and trades. Bitcoin’s blockchain is an open and distributed ledger that stores all transactions made by a user into blocks and connects them to the user’s address. The process to create coins through proof of work is time-consuming and very difficult. A lot of the value of Bitcoins is how difficult the process is to create them.

What is Bitcoin Mining?

Bitcoins are created during a process called “mining.” With an onslaught of transactions on the blockchain network, confirming those transactions and keeping blocks organized is of the utmost importance. Special nodes called “miners” use complex software, expensive hardware, to create a network of powerful computers that solve math problems. Every so often, the process rewards miners with Bitcoin. Over time, this process has become more difficult to stop too many coins from being created too fast because only 21 million will be made.

WealthHunters did an extensive look recently into Bitcoin Mining that you can find right here.

Personal information isn’t required to trade Bitcoin. As a result, people can be skeptical of cryptocurrency their information doesn’t need to be verified. The crypto market being decentralized and unregulated has made it a safe haven for criminals and scammers. A lot of people see cryptocurrency as a minefield. The cryptocurrency market is full of dangers, but Bitcoin tokens are protected by being locked in a secure cryptography system with a private key. We will get to storage and security later on during the how to buy Bitcoin section.

History of Bitcoin and the Mystery of Satoshi Nakamoto

The history of Bitcoin begins in 2007. Satoshi Nakamoto started developing the concept for the cryptocurrency. The next year, Satoshi registered anonymously and released the groundbreaking white paper in October. It was just a few months later that the history of Bitcoin began. In January 2009, “the Genesis Block,” or the first block of transactions for the network, debuted. Six days later, Bitcoin released the first version of its platform and confirmed that only 21 million coins would be made through the year 2040. Over the rest of 2008, Bitcoin continued to grow under the radar.

Before the rise of cryptocurrency, numerous projects failed to establish a new digital currency of their own. Adam Back developed HashCash in the late 1990’s. David Chaum created ECash to serve the same purpose as Bitcoin, but those concepts were just twenty years too early. HashCash has become part of Bitcoin’s mining process and Chaum has made many contributions to the development of digital currency. Their early failures paved the way for “Satoshi Nakamoto” to begin the history of Bitcoin.

The true identity of Satoshi Nakamoto has not been revealed. The name could be a pseudonym for a group of individuals rather than just one person. Other than some rumors a speculation, the identity behind the creator of Bitcoin still remains a mystery.

Buying Pizza With Bitcoin

The history of Bitcoin didn’t pick up until 2010. By May, the currency had established its own exchange rate and the asset was growing exponentially. A pivotal moment in the history of Bitcoin was when Laszlo Hanyecz, a programmer from Jacksonville, used 10,000 Bitcoin tokens to buy pizza. It was the first time BTC coins had been used in the real-world. At the time, the exchange rate for 10,000 tokens was about $25. If he were to make the same transaction today, Hanyecz would pay $64 million for that pizza. It wasn’t long after that news went public that people wanted to know how to buy Bitcoin.

Bitcoin’s Price History

Hanyecz buying pizza with cryptocurrency created a ton of interest in the asset. A few months later, the price history of Bitcoin broke the penny threshold. In six months, the market cap exceeded a million dollars for the exchange and reached $0.50/BTC. Over the next two years, BTC’s value rose to $100/BTC, a market cap of a billion dollars, and has continued to rise ever since into the crypto superpower that you know it as today.

Unfortunately, there have been major speed bumps in Bitcoin’s rise to cryptocurrency supremacy. In 2010, BTC’s system was still relatively new and hackers exploited 184 billion BTC after finding a weakness in the system. The exchange was earned a poor reputation for being unsafe and the price history of Bitcoin started becoming erratic.

Bitcoin’s Rise to Supremacy

In early 2011, the exchange rate for 1 Bitcoin was worth $1 for the first time. The asset started becoming popular for hackers, scammers, and other criminal activities, which remains a problem for the exchange today. Bad press still brought people to the crypto exchange and the price history of Bitcoin skyrocketed from $1 to $30 before crashing to $10. Simultaneously, other cryptocurrencies started hitting the market such as Litecoin.

The price history of Bitcoin continued to have its ups and down over the next few years as cryptocurrency grew in popularity. In 2012, BTC tokens had a value of $100. In 2013, their value had increased to $1000. The next four years were full of ups and downs, but most people believe that cryptocurrency as a whole had reached its apex until 2017.

In 2017, Bitcoin had its most successful year by far and entered the mainstream. Bitcoin had reached a new value of $3,000 by June. The popularity of cryptocurrency surged and it reached a new height of just under $20,000 per BTC by the end of the year. It was only a matter of time before the asset came crashing back down to Earth. That’s what 2018 has been for Bitcoin with a value drop of 67 percent. The currency has consistently been valued near $6,000 all year, but it still remains the most important cryptocurrency on the market.  

How to Buy Bitcoin

As a result of its popularity, how to buy Bitcoin is an easy question to answer. First people ask how to buy Bitcoin and then they ask how much more they can buy. There are hundreds of ways to buy and sell BTC tokens. WealthHunters recommends having the best crypto wallet available for your transaction needs. For instance, trading Ethereum with an Ether Wallet is a no-brainer. The same advice can be applied to trade Bitcoins.

If you’re buying tokens through Coinbase, the first step is to sign up for an account. This will give you an extremely secure place to store and access your tokens. After creating an account, the next step is verifying a bank account. There will be some steps to take to confirm your personal information. However, that will be the last step before trading.

Once you’ve logged into your account, click “Buy/Sell” and select the right tab. You will have the opportunity to type in the amount of money you’re capable of spending and the built-in calculator will confirm how many tokens you can buy. After that, all you need to do is buy the coins, confirm the transaction, and how to buy Bitcoin is a question of the past.

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