Bitcoin has been all the rage in the last few years. The cryptocurrency has gained massive attention and appeal from people all over the world. Although many people have heard of Bitcoin, people who are not actively invested in the upkeep of information may not know what it is or how it works. This article will expand upon the origins of Bitcoin and where it is now in the financial realm. There is a vast amount of information to be covered on Bitcoin, and this article will only be scratching the surface of the trending cryptocurrency.
In 2008 a person, or group of people, by the name Satoshi Nakamoto published a research paper on a web forum detailing a new cryptocurrency called bitcoin. The forum users had no idea who Satoshi Nakamoto was nor did they have any faith in the cryptocurrency he was proposing. Since the internet was invented, virtual cash had been a hot topic for developers. All attempts to create an efficient cryptocurrency had failed. Problems that arose from the early cryptocurrency projects were the ability to copy the digital currency to have unlimited spending for users. That problem was resolved by keeping a ledger of all transactions of people who had cryptocurrency and ensuring once that currency was spent it could not be spent again. This required a third party to monitor the transactions. Bitcoin did away with the third party and gave the power directly to users willing to give up CPU power to “mine” cryptocurrency through a software on their computer. This structure of utilizing users to handle the ledger overcame many lasting obstacles with previous cryptocurrency attempts. The mining process gave way to a predictable amount of cryptocurrency available and quickly gained popularity across the financial sector. The current state of trust in the U.S economy launched Bitcoin to the top subject of debate for financial professionals.
The initial popularity of Bitcoin has begun to recede. In recent months investors have begun to question the validity of Bitcoin algorithm and whether it can withstand the test of time. Some die-hard Bitcoin enthusiasts believe that the cryptocurrency is going through a cycle and it will be back on top soon. The cycle is called the Gartner’s Hype Cycle which entails a quick peak, then a collapse, and coming back to a plateau of productivity. If this cycle is correct, then Bitcoin will be a long-lasting investment that reaps significant rewards.
After all the hype of Bitcoin and its creation, people who are extremely invested in it still do not know who the creator of it is. Rumors have sparked that is a group of government individuals created under the Obama administration. Others have stated that it is one individual who wishes to remain anonymous. Whoever Satoshi Nakamoto is, they have scarcely chimed in on interactions regarding the outcome of Bitcoin. But when Nakamoto has commented on the process of Bitcoin, the financial realm has taken notice.