A History of Bitcoin: The Bitcoin Market
The bitcoin market has fluctuated since the cryptocurrency’s inception. Since its humble beginnings, bitcoin has seen a huge rise in demand from investors, but it has also routinely battled criticism from financial authorities. These events mean that the cryptocurrency market has always fluctuated, providing a number of trading opportunities for CFD traders.
Cryptocurrency news has even hit the mainstream in recent years, capturing the public’s imagination. In this guide, we’ll take a look at all the cryptocurrency news since the inception of bitcoin, creating a timeline of the currency’s history.
2008: The Beginning of Bitcoin
Neal King, Vladimir Oksman and Charles Bry apply for an encryption patent application, registering the domain bitcoin.org after purchasing it anonymously.
Satoshi Nakamoto (the alleged mastermind behind bitcoin), who King, Oksman and Bry denied knowing in their patent application, releases a white paper about a peer-to-peer version of electronic cash.
2009: Mining Begins
In January, the first mining of bitcoins begins, with Nakamoto mining the first ever block of bitcoins (known as the genesis block). The first bitcoin transaction also takes place between Satoshi and Hal Finney, a developer, for 10 bitcoins.
Before disappearing from all involvement in bitcoin, it is estimated that Nakamoto mines 1 million bitcoins.
2010–11: Pros and Cons Emerge
In May 2010, a developer in Florida sends 10,000 bitcoins for someone to order two pizzas for him. In the 2017 market, the current value of the bitcoin used to purchase those pizzas would be well over $20,000,000.
Bitcoin receives a negative spotlight in summer. Reports of money laundering with new payment methods emerge and individuals are hacked, losing some of their bitcoin.
However, the value of bitcoin rises to $0.50/BTC near the close of the year. The situation improves even further in 2011, and in February, bitcoin reaches parity with the dollar, before reaching highs of $31/BTC in July.
2013-14: United States and UK Accepts, China Derides
A US judge declares that “bitcoin can be used as money to purchase goods and services”, helping legitimise the currency. In addition, the US Senate holds a hearing on the digital currency, and it gains the backing of Ben Bernanke, the chairman of the Federal Reserve.
The Bitcoin Center is also founded next to the New York Stock Exchange, educating people about bitcoin, blockchain and encouraging the trade of cryptocurrency.
However, the People’s Bank of China states that the currency has no ‘real meaning’ and bars Chinese financial institutions from handling bitcoin transactions. Buying real-world goods with virtual currency has been illegal in China since 2009.
In 2014, then Chancellor of the Exchequer George Osborne confirms the UK’s positive outlook on bitcoin, and the Treasury announces a Call for Information on digital currencies.
2015-2016: Bitcoin’s Rise
Over the next couple of years, the value of bitcoin rises steadily. Initiatives in the US and UK mean that more people are aware of bitcoin, leading to the increase of public ‘buzz’, with the number of miners growing alongside this.
2017: The Year of the Bitcoin Boom
2017 sees Japan introduce new rules for digital currencies, and China softens its stance towards the cryptocurrency. Alongside this, the global demand for bitcoin soars, creating the perfect storm for the cryptocurrency, as it hits highs of over $5,000 in October.
The Future of Bitcoin
Whereas it was once considered as a criminal currency by some, bitcoin has now been embraced by the public psyche and has begun to push to the mainstream, highlighting the need for the creation of a digital currency.
Bitcoin’s next foray will need to involve adoption by both large institutions and governments. This can help push the cryptocurrency into the eyes of the public, and help shed the image of associated crime and underhand activity. With HM Treasury in the UK encouraging the digitisation of currency, this move could be accelerated in the coming years.
Trade Bitcoin CFDs with ADS Securities
At ADS Securities, clients have the convenience of trading bitcoin CFDs through their ADS Securities account. This helps to remove any barriers to trading bitcoins, such as the need for a virtual ‘wallet’ or access to a virtual exchange.
With ADS Securities, you can open a CFD position, which means that rather than taking ownership of bitcoins, you can trade on whether the price of bitcoins will rise or fall in relation to the US dollar. As with any CFD, if you are correct, you will profit from the trade; if the market moves against you and you are not, you will make a loss.