In the Bitcoin universe, there are five eras or periods:

  1. First Era: Bitcoin’s Creation and Taking Over the World (2008-2010)
  2. Second Era: Investment Boom (2010-2013)
  3. Third Era: Bitcoin Takes More and More Square Footage in the Financial World (2013-2015?)
  4. Fourth Era: Bitcoin Gets Recognized by Governments and Central Banks (2016/2017?)
  5. Fifth Era: Bitcoin Has Become a Regular Currency Used in Commerce All Around the Globe (2020/2025??)

In this article, we will be focusing on Bitcoin’s general development during its third era when it started to get more recognition from governments and central banks all over the world for its usefulness as an asset. You need to visit this site, from where you can find a complete guideline for investing in Bitcoin.

Basics of Bitcoin

The Bitcoin network is a decentralised P2P system, meaning there are no servers or central points of control involved. Bitcoin transactions are signed cryptographically with the keys of both transacting parties. These two keys are not linked to personally-identifying information (PII) like name, address, etc., but are associated with Bitcoin addresses which aren’t really “addresses” per see, but strings of letters and numbers that look like this: 1KNpFppWwNUqQE19JTAyHQsjCp1euVs65L

An important thing to note about Bitcoin’s security is that private keys exist only on paper at their point of creation, or somewhere in digital form offline. Bitcoin wallets are merely collections of Bitcoin addresses, not private keys; anyone who has the private key associated with their Bitcoin address can spend the Bitcoin in that account.

Bitcoin Security System

The Bitcoin network is secured by Bitcoin miners, individuals, and companies that secure the Bitcoin blockchain (public ledger) by solving cryptographic problems using computing hardware to generate new blocks in the blockchain once a certain amount of work has been done. The more computing power you have, the greater your chances of generating bitcoins. 

Bitcoins on the background of dollars. Golden Bitcoins. Symbolic coins of bitcoin on banknotes . Exchange bitcoin cash for a dollar. Bitcoins and classic abacus and symbol of new and old financial tool . Abacus used for counting, adding, and subtracting

They get rewarded with newly generated Bitcoins for doing this work, this is how new bitcoins enter circulation within the Bitcoin economy without any central authority controlling it all. The number of newly generated Bitcoins per block halves every four years or so until Bitcoin’s total supply reaches 21 million BTC, which is expected to happen in Bitcoin year 2140. 


Bitcoin’s price has been rising since Bitcoin’s inception, Bitcoin was worth around 5 cents per Bitcoin when Bitcoin first launched back in 2008/2009 with Bitcoin worth around $1200 USD at Bitcoin’s peak during Bitcoin’s all-time high back in December 2017/2018 with Bitcoin now trading for less than half of that value. Bitcoin keeps on falling with Bitcoin down over 90% from Bitcoin’s peak during the Bitcoin August 2018 crash.

It is not known who the creator of Bitcoin is, but it is speculated it was either a Japanese person named Satoshi Nakamoto or an Irishman named Michael Clear. A number of journalists have already investigated this matter and concluded that neither one fits the description well, but Bitcoin’s creator(s) was/were definitely a technologically minded person from somewhere in the English-speaking world due to Bitcoin’s heavy use of British and American terminology and spelling. 

All Bitcoin accounts and transactions are completely transparent and can’t be traced back to anyone personally if you don’t link your Bitcoin address with other PII like name, address, etc., so it is unknown who gets all the credit for Bitcoin or what their reasons were for creating Bitcoin other than to disrupt the global financial system as we know it by removing middlemen such as banks.

The first-ever real-world transaction involving Bitcoin happened back on May 22nd, 2010 when Laszlo Hanyecz offered 10,000 BTC (worth $41 USD at Bitcoin’s launch) to anyone who would buy him two large Papa John pizzas. Bitcoin transaction fees were next to nothing back then, Bitcoin was worth very little compared to the dollar and Bitcoin has always had a big community of Bitcoin supporters since Bitcoin first launched.

On December 12th, 2017 Bitcoin started its meteoric rise towards one of Bitcoin’s biggest bubbles in Bitcoin history with value rising over 1000% during Bitcoin’s historic run-up before crashing all the way down below 50% from the top as Bitcoin continued falling throughout 2018. For April 2019, Bitcoin is down over 90% since Bitcoin’s highest price during December 2017/December 2018 bubble.

Conclusion

Bitcoin has existed for just over ten years now, starting off as an unknown digital currency, one that was created by a person or group of people using the pseudonym Satoshi Nakamoto. Bitcoin is unique in that it is not backed by any central government or physical goods. Bitcoin runs on an immutable distributed ledger called the blockchain which contains all transactions ever made with Bitcoin. Advantages to Bitcoin are instantaneous transactions and low transaction fees, though they come with Bitcoin’s drawbacks of Bitcoin being extremely volatile and Bitcoin halving Bitcoin’s scalability issues.

Image Souce: BigStockPhoto.com (Licensed)

 

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