Bitcoin – the history of the development of the most popular crypto currency and the reasons for its popularity! Alexander Sivtsov.
In this article, we will begin to get acquainted with the most popular crypto currency today in the world, the price of which has grown exponentially since its creation and has reached unprecedented heights in a relatively short period of time – Bitcoin.
History of development
Bitcoin is one of the earliest and most popular crypto currency in the world, which was created by a person or a group of people under the pseudonym of Satoshi Nakamoto. The development of the code for the creation of the crypto currency began in 2007, and the first mentions of the principle of the payment system were published in 2008. The first block at which 50 bitcoins were created was generated on January 3, 2009, and on January 12 of the same year was made the first transaction of 10 bitcoins that Satoshi Nakamoto sent to Hel Finney.
For the first time the exchange of bitcoins for real currency was made by a user of crypto currency under the pseudonym NewLidertyStandart in September 2009 in the amount of 5050 coins. The user received $ 5.02 on his PayPal account.
The first exchange item of bitcoin for the US dollar was established in 2010. The first purchase of the goods using bitcoin happened in May 2010. For 10,000 bitcoins, American Laszlo Hanyecz ordered two pizzas. It was this transaction of Hanyeczc that became the starting point for the growth of the Bitcoin exchange rate and in a few months the same 10,000 bitcoins stood at $ 600.00. For this money you can buy much more than 2 pizzas, and today the same 10,000 bitcoins cost about $ 60 million.
Reasons for Bitcoin price increase
The price of Bitcoin is formed on the basis of the difference between supply and demand, which is affected by several key factors.
- Demand for Bitcoin, as well as for other crypto-currencies, is explained by the purpose of creating such a payment instrument. You can find more information about this in the article on crypto currency https://esterholdings.com/en/2017/10/26/kriptovalyuta/.
- The second reason for the price increase is its security advantage over other crypto-currencies, as well as a wider range of its use.
- The third and probably the most important reason for the growth of Bitcoin’s price is its limited issue, which equals to 21 million coins, while today more than 16.5 million coins have already been extracted.
Drawing conclusions on this article, Bitcoin is today not just a popular tool for making various payments for goods and services, but also an excellent tool for trading on the exchange, as it has excellent volatility, which is the main factor for making a profit for trade. Follow the trader’s blog and expert opinions on the Ester Holdings Inc. website to get as much useful information about Bitcoin as possible to earn on this financial instrument.
Alexander Sivtsov