Bitcoin – Covering Up History

Bitcoin – Covering Up History

So, it has been more than a decade since Bitcoin came into our lives. A few months after the whitepapers were published, Bitcoin landed in the first-of-its-kind crypto environment in January of 2009. Moreover, you have to be thankful to the person whose relentless work took it to fruition. It is none other than Satoshi Nakamoto. At that time, Bitcoin’s price was quite low. So, it did not garner the kind of attention it has today. Then suddenly, Nakamoto vanished from the scene, and the digital currency took its own course.

The Eventuality of a Looming Crisis

In the year 2008, the banking and finance industry was going through a tumultuous phase. Furthermore, the Great Recession was at its peak. Before Bitcoin, many other inventors had tried their hands at creating digital cash, but none succeeded. So, you can say that the Bitcoin was born under the reigns of the crisis around real money. Until then, the money market funds were doing good. Then all of a sudden it was famished. $3 trillion was already invested in such markets. But, as they promised very high returns, they carried 100% the risk. Anyone who had some amount of risk-taking ability could get the most out of the money market.

But after Lehman’s bankruptcy, it fell flat. That is when the government and the people, in general started looking for alternate modes to generate money. There were several options, like strengthening the rules surrounding financial institutions, making them more stable, or to create an entirely new system. So, in cam Bitcoin at this stage, and everybody started taking it seriously. Well! To be precise, you cannot see Bitcoin. So, it is speculative as an investment. This internet-based currency operated without an intermediary. It became the possible answer to all of society’s possible anxieties.

Understanding Its Price Lineage

If you are to understand Bitcoin fully, you should have the know-how of its technological lineage. Bitcoin was truly built upon past but failed innovations. What others could not succeed in, still paved the way for Nakamoto. It is truly based on financial cryptography, distributed systems, and network security, to name a few. One of the primary characteristics of Bitcoin is its volatile pricing. If you go back to the year 2011, you will find Bitcoin crossing the $1 mark. In the preceding years, the price crossed $2.

Then in the year 2013, it suddenly jumped to $200. And, by November, the prices rose to $1,000. In November, 2021, Bitcoin stood at the astounding price of $68,990. You can also delegate some of this hype to the Initial Coin Offering or ICO craze. Many other companies came up with their own version of Bitcoin. The Bitcoin market, having matured a bit, has given a lot of hope to various financial institutions.

The Bitcoin Today

Today, one Bitcoin has a value of $37,000. So, you have to see how it fell from the November, 2021 high. Moreover, the identity of the Bitcoin-maker remains shrouded in mystery. Some people believe it is the work of the largest global MNCs, whose names may not be revealed too soon. Others believe that it is a trap-door to control the world. More and more coins and ecosystems, like Ethereum, Altcoins, Dogecoin, and Solano have also entered the market. More and more investors are thinking about how to include cryptocurrencies in their portfolio. Whatever one does, one has to be ready for price drops or rise of 15%, in a matter of hours, or days, as the case be. So, you should keep 5% of cryptocurrencies in the portfolio. Let us see if it reaches the $100,000 mark by 2023.

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