In 2008, a man calling himself Satoshi Nakamoto released a whitepaper called “Bitcoin: A peer to peer electronic cash system” (https://bitcoin.org/bitcoin.pdf) describing a new digital currency that was immune to forgery and immune to falling prey to the problems facing fiat currencies.
In January 2009 bitcoin came online. Nakamoto mined the first block (the Genesis block) for a reward of 50 bitcoins. Websites dedicated to bitcoin started popping up and transactions started flowing; the most notable was a transaction for 2 pizzas for the price of 10,000 bitcoins, $25 at the time, or less than a penny per bitcoin
Between 2008 and 2010 Bitcoin’s network started growing and perfecting itself. A critical flaw in the Bitcoin protocol was found and fixed in August 2010 that allowed for fraudulent coins to be inserted into the network by not correctly verifying a transaction before it being accepted into the transaction log. The benefits of the decentralized network allowed for a swift response and within hours of the 184 million fake Bitcoin being transacted, the fraud was detected and the network healed by migrating to an unaffected, patched version through a process known as forking.
In early 2011, Bitcoin was the same price as the dollar, a dedicated magazine for cryptocurrencies was launched educating more and more people about Bitcoin. Bitcoin started being mentioned on TV, in financial news and documentaries and even in fictional TV shows. Bitcoin was trying to get all sorts of positive and negative attention. The benefits of Bitcoin also attract negative use often associated with cash – organized crime. Money laundering and tax evasion was made simpler by using Bitcoin.
In April of 2011, inventor Satoshi Nakamoto separated himself from bitcoin, its open source nature ensures that other developers continue to contribute to the development of the codebase and ecosystem as a whole. After Satoshi had given this gift to the world, his parting words were that he had moved onto other things.
The true identity of Satoshi Nakamoto has the been at the heart of a number of debates. He has been linked to a number of names over the years, but speculators also suggest that Nakamoto is not 1 person, but instead, a group of seriously intelligent mathematicians, coders and financial gurus whose bitcoin addresses suggest that they are holding more than $1 Billion worth of unspent bitcoins. No one has heard from him (or them) since.
2011 also introduced Bitcoin to the infamous darknet market, Silk Road. Using bitcoin as a payment method, the site allowed the sale and purchase of various legal and illegal substances and services, guaranteeing the privacy of both sellers and buyers. It has since been shut down with the owner being sentenced to prison for various crimes and all assets being seized by the FBI. Ironically, the FBI and others broke several laws, including hacking the Silk Road servers, to obtain sufficient evidence to prosecute, violating various privacy laws in the process.
Despite the negative press surrounding the Silk Road, it showed the world that there was a definite market for a private peer to peer money system – people started realizing that they should be allowed to use their money in anyway shape or form, for whatever purpose without the prying eyes of big brother watching. A revolution had started and gained momentum as its benefits were understood – a way for people to use money without having to explain themselves to anyone and was exactly what the world needed.
Bitcoin payment processors such as BitPay and Coinbase were established with major financial and intellectual support, allowing the Bitcoin ecosystem to expand, as more vendors such as restaurants, casinos and universities, were able to easily accept Bitcoin.
After a number of successful years, 2013 was a tumultuous year for Bitcoin. Having started the year with a around USD 14 per Bitcoin, it went to on to hit new highs smashing all expectations and at some times, defying belief as it passed the USD 1,000 mark. It was described as the new gold and spawned a frenzy. ATMs were launched around the world making the exchange of fiat currency for cryptocurrency a familiar experience. It would go on to finish the year around the USD 700 mark, a respectable performance that saw it gain 5,429%.
2014 was a less that perfect year with the collapse of Mt Gox, a large exchange that helped Bitcoin achieve the highs of 2013. The failure was surrounded with controversy as suggestions of theft and market manipulation helped drop the price of Bitcoin down to the USD 200 range.
This huge swing in price was a lesson hard learned as many lost fortunes over night and others saw no hope for the future. It was inorganic growth that was unsustainable and this was simply the market correcting itself. The law of equilibrium was being demonstrated. The hope that the prices seen before would return meant that many would simply hold their Bitcoin indefinitely, waiting patiently to at least break even. Interest from big companies from the likes of Microsoft kept this hope alive.
2015 picked up where 2014 left off and Bitcoin was trading at around $200. It was a long recovery and many months of sideways movement, the graphs flat lining when compared to the steep curves seen in earlier years. One thing that Bitcoin did do in 2015 was hold its value. It was a true test of resilience of the ecosystem. How would it survive after a flurry of negative press and a price that did not attract any positive attention?
After months of sideways movement, May 2016 broke the trend and the price was on the up again. Spurred on by furthered adoption by both small and large vendors such as Steam and rumours that Japan was looking to recognize cryptocurrency with the same legitimacy as fiat currency. The scandals surrounding Bitcoin’s use for illegal trade and the collapse of key players seems to be a distant memory and nearly 800 Bitcoin ATMs are available worldwide.
In March of 2017 1 Bitcoin was worth more than 1 ounce of gold. An ETF for Bitcoin was submitted by the Winklevoss twins, gathering more interest in Bitcoin by allowing institutional investors that traditionally turned to Wall Street to use Bitcoin as an option for investment. The ETF was declined, resulting in a sharp drop in price which quickly rebounded. May of 2017, Bitcoin broke past the $1800 barrier. In early June 2017 Bitcoin reached $2600 – a week later it was touching $3000.
How can I invest in Bitcoin in India?
There are 3 ways to make money with bitcoin.
Buy BTC and hold them until you make profit and simply sell them. You can buy bitcoin in India from Zebpay, unocoin or local bitcoin. I suggest you to go with Zebpay. It’s more secure and easy to use. You always find best selling and buy price as compared to any other exchanges.
Mining You can Invest in Mining company and start making money through it. Or else you can buy your miner and start mining by yourself. But it’s too costly. I suggest you to Go with Bitclub Network mining.