Eight (and a bit) Years of Bitcoin

bitcoin-495995_640Popular theory dictates that Satoshi Nakamoto, the enigmatic creator of Bitcoin, began working on his game-changing currency way back in 2007 but the wheels didn’t really begin turning on the cryptocurrency until August of the following year, when the first Bitcoin-related website was founded.

A few months later, at the beginning of 2009, Bitcoin became a functional currency when Nakamoto sent an undisclosed amount of Bitcoin to late developer and cryptographic activist, Hal Finney, a man who is remarkable for a number of reasons, not least because he’s currently cryogenically frozen.

Pizza

Bitcoin wouldn’t see a trade of the currency for real goods until the summer of 2010, when a man from Florida spent 10,000 Bitcoins on two pizzas. The man, Laszlo Hanyecz, would be $7.3m richer today if he’d held onto his stash of cryptocurrency; in fact, just three years after Hanyecz’s fateful pizza purchase, each Bitcoin was worth $1,300 – that’s $6.5m per pizza. Hanyecz said the trade was “incredibly cool”.

2010 also saw the first Bitcoin currency exchange founded and the disappearance of Satoshi Nakamoto from the scene. The mysterious inventor has been ‘unmasked’ a number of times since, firstly as cryptocurrency pioneer, Nick Szabo, then as a Japanese man named Dorian Nakamoto, and most recently as Australian, Craig Wright. Somehow, in 2016, the world is still none the wiser about who or what Satoshi Nakamoto is.

Let’s fast forward a bit.

Virgin Galactic

Bitcoin’s value rocketed in 2013, from $13.53 per coin at the end of 2012 to $1,030 at the same point the following year. 2013 also represented the first time that a major corporation began accepting Bitcoin for its services; in this case, space flights from Virgin Galactic. Microsoft, Valve, Expedia, Overstock, Newegg, and lots of other major firms would come to embrace Bitcoin over the next three years.

Virgin’s Sir Richard Branson and Bill Gates, the co-founder of Microsoft with Paul Allen, remain proponents of the currency to this day, with the former suggesting that the technology behind Bitcoin, blockchain, could be used to help prevent fraudulent activity in developing countries around the world.

Safe Haven

Despite that huge surge in value three years ago, 2016 has arguably been Bitcoin’s year, with financial instability in the wake of the presidential election pushing US investors towards Nakamoto’s currency as a ‘safe haven’ for their money. Janus Capital’s Bill Gross also intimated that Bitcoin could provide a better option for investors looking to escape banks pushing negative interest rates.

The recent appearance of websites like Vegas Casino, a Bitcoin-only iGaming company, is testament to just how promising the future of Nakamoto’s currency is. Offering bitcoin roulette casino, as well as other games like poker and slot machines, Vegas Casino is pinning all its hopes on the success of Bitcoin by abandoning fiat currencies altogether.

It’s hard to see anything but additional growth in Bitcoin’s immediate future. British wallet provider, Blockchain, recently posted its biggest month ever in November, reaching 10m users. Pundits have also predicted another rise in the currency’s value, possibly to as much as $1000 per coin in January 2017.

Bitcoin is in its ascendency.

Join our newsletter

If you like Critical Financial, subscribe and get our latest content via email.

Powered by ConvertKit

Share this post:

Recent Posts

Leave a Comment

*

May the 4th Be with You: Star Wars Swag on Amazon

May the 4th Be With You: Star Wars Day Swag

It began as the punniest holiday ever but quickly grew into an earnest (if somewhat random) celebration of the long-running (and still... more →
People count the money to buy a house in future success.

Avoiding Mortgage Scams: Don’t Fall for Unreasonable Promises

If it sounds too good to be true, it probably is. That’s sound advice for almost all aspects of life, including the search for... more →
Eat for free for a whole month via the meal kit companies discounts for new customers.

How To Get a Month of Free Food: 9 Meal Kit Companies Offering Discounts to New Customers

Play your cards right and you might be able to line up a month’s worth of free meals if you were to try out all nine of the meal... more →
Generate extra cashflow -- here are 97 ways.

96 Awesome Ways to Generate Extra Cashflow

Who doesn’t want more money nowadays? We’ve got you covered on that front. Here comes a long list of different ideas on... more →
Valentine's Day gifts that won't destroy your budget

Valentine’s Day Crafts Are Romantic Rescue from Crazy Inflation

Fall for the hype this week and you’re out an average of $143.56 for Valentine’s Day. Crafts and other do-it-yourself tactics... more →

Ultimate Guide to Bitcoin — FREE Ebook!

Have we got something for you: a free ebook about bitcoin! more →
Get a flu vaccine.

Why You Need To Get a Flu Vaccine Right Now

Flu vaccines aren’t just for the elderly  anymore. Here are 25 reasons you should go get vaccinated. more →
Financially successful

Acquire the Trait All Financially Successful People Have

Financially successful people tend to all have a lot of self-discipline. Improving your discipline in one area of your life often spills... more →

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →

The Current State of Student Loan Debt

America has reached a new economic milestone – or maybe a millstone – of $1.52 trillion. Which of the following does this number... more →