Briefly Understand the History of Cryptocurrencies

18th May 2021

A human being always finds ways to satisfy his needs. He constantly works towards the betterment of his own life and his family. Being a social animal, he gathers information from the social system and uses the information to decide the fate of his own and his family. It is a well-known proverb that necessity is the mother of invention and man has proved this proverb to be true by constantly working towards making his life easier. Not only in the physical world but the prevailing digital world the proverb has started to prove its grounds as well. One of the inventions that man-made was the digital assets called cryptocurrencies. These have proved their ground and have taken over the fiat money in the physical world. But an invention is not that simple as it seems to be.

The date of 31st October 2008 is a remarkable event in the history of mankind. On this day an anonymous person or group that has the name of Satoshi Nakamoto introduced the word Bitcoin to the world. He published an online whitepaper under the topic name “Bitcoin: A Peer-to-Peer Electronic Cash System”. The article introduced the words of blockchain and the networks related to the functioning of the same. If you want to know more about bitcoin visit the wealth matrix.

The buzz about the news of digital currency started making rounds on the social media networks and the local news channels. After a few months another article under the name “Nakamoto” was released by the same author that discussed the trends of blockchain technology. Though the articles surfaced on the network the true founder which started this remarkable digital revolution is still unknown to this date.

During the initial phases when the world has a mere or no knowledge of digital currency several pieces of news begin to make the surface. In 2010, Laszlo Hanyecz made their first purchase by using bitcoins. He purchased two pizzas that cost him around 10,000 BTC. That day was celebrated as “Bitcoin Pizza Day”, that is now celebrated as a vacation among the traders and enthusiasts dealing in the cryptocurrencies. In 2011, Litecoin was founded by another eminent personality, Charles Lee. It is now considered as the second-best crypto asset just after Bitcoin. The number of Litecoin’s in the market outnumber the figures of thousands. Importance: the foremost reason that the cryptocurrencies became the most important digital asset is due to the nature of backing that is decentralized. The centralized system being used in daily routine activities including the market economy structures like in share markets has become an essential part of our lives but the decentralized nature of the digital market is an important aspect of the digital market. By centralized system it means that the system is controlled by a higher authority that has the powers of regulation that is absent in the decentralized form of structure wherein the network holds the process and not an individual or authority.

The nature of security and surety of secrecy are other reasons that the decentralized processes prevailed in the market. The blockchain technology that involves miners and authorized hardware’s and software that help in smooth and efficient functioning of the market. It is due to the blockchain that a user keeps in mind it is only him that is controlling the transactions and not some other third party or another higher body demanding commission to get the project done completely. The current period is considered as the initial phase of crypto development. Many economists believe that as time progresses and the people become aware of the technology and reach it, the digital era is coming soon. Digital assets are rightly called the future of the economy.