October 31, Bitcoin celebrates its tenth birthday. The Creator of the world’s first cryptocurrency, Satoshi Nakamoto, can be proud of the progress of their offspring. Coins BTC become part of the lives of many people and is among important financial instruments.
10 years since the release of the White paper
Exactly 10 years ago, on 31 October, the developers under the pseudonym Satoshi Nakamoto published a documentation of the project (White paper) Bitcoin. In the white paper was described by the revolutionary peer-to-peer payment system based on a decentralized network blockchain.
In the White paper specified the main advantage of Bitcoin compared to Fiat currencies:
“With the help of e-currency users will be able to send each other money transfers without monitoring by financial institutions”.
Bitcoin is the first independent payment system
Satoshi offered an alternative to the traditional centralized payment systems: the system for people driven people. Thanks to the technology of the blockchain and cryptographic Protocol consensus “proof of work” (proof-of-work) managed to create a reliable and completely transparent system.
In 2008, Nakamoto expressed his opinion about the potential of the project: “Many people believe that electronic currency is doomed to fail and cite the example of a bankrupt Internet companies, that started to work in 90-e years. In my opinion they ruined the centralization of systems. We are trying to create the world’s first decentralized system that is not based on trust, and cryptography”.
Creating your first unit
This birthday of Bitcoin can be considered as the date of creation of the first block (Genesis Block). He was added to the blockchain on 3 January 2009, the first Bitcoin miner was likely to himself Satoshi Nakamoto.
What has changed in 10 years?
Since the release of the first coins BTC in 2009, the rate of bitcoin has increased hundreds of times. Long gone are the days when 2 pizzas worth of 10,000 BTC (around $25 in 2010). Now in Bitcoin, you can buy almost everything from property and cars to ticket to Space!
The blockchain technology is also not standing still – it has become one of the key innovations in many areas of business. It is successfully applied to financial enterprises, transport companies. The Chinese authorities are encouraged to use the blockchain on an industrial scale, and the South Korean government invests millions of dollars in software development based on decentralized networks.
2018 was a challenging year for the crypto community. Bitcoin fell 3 times and continues to fall. According to experts, the main reason for the depreciation of the BTC is that the market left to speculators, who artificially inflated the price of the digital asset. However, you cannot deny the fact that Bitcoin is losing popularity: this is evidenced by statistics of the Google search engine. What are the prospects of Bitcoin? Now this largely depends on the position of the state if the government were to prohibit or restrict the circulation of cryptocurrencies, Bitcoin will not be able to expand our customer base and to add in the price.
Cryptocurrency was initially free from control by the authorities of the financial instrument, but unfortunately, times are changing: transactions in BTC track tax services in many countries, decentralization is a big question. Bitcoin has long emerged from the shadow of the darknet, but will his life? The opening of the long-anticipated Bitcoin ETF, creation of new BTC futures and other derivatives does not add value Bitcoin as a means of payment. The coin becomes the subject of savings, deviating from the plan Nakamoto. Cryptocurrency was not created as digital gold and as digital cash, which is convenient to pay for goods and services.