Many people consider Bitcoin to be one of the greatest inventions of the modern era. This cryptocurrency now counts millions of users around the world and the reason as to why so many of them are open to using it is because it has tons of advantages over FIAT currencies and other cryptocurrencies.
User anonymity, instant transactions, network stability, great liquidity, generally lower transactions fees, and the possibility to make a profit are just a few of those benefits. As Bitcoin shot its way to the top of the global trending news thanks to the recent historical milestone, we decided to take a step down memory lane and give you a short history of this cryptocurrency. But first, let’s see how people actually reap one of its greatest benefits – making money.
How People Make Money With Bitcoin?
Bitcoin profiting is a process that includes 2 phases – earning Bitcoin and selling it. Earning Bitcoin is done through mining. Mining requires them to process every transaction made with this cryptocurrency. Each verified transaction is called a block and miners earn Bitcoins with every completed block.
After miners earn a certain quantity of Bitcoins, comes the second phase – selling them. Although this process may seem simple since the interest in Bitcoin is massive, that is not the case. Why? Bitcoin is a highly volatile currency, meaning that its price fluctuates and can change each day. Miners find it difficult to predict the future price of this cryptocurrency and determine when is the best time to sell them and maximize their profit.
So, they turn to the experts. Trading sites are the platforms which have the tools to determine the future price of Bitcoin and make it easy for miners to know when is the best time to sell their Bitcoins. One of the most reputable sites of this character is Bitcoin Storm, a platform which has thousands of users around the world and records a very high daily profitability rate. If you want to sell your Bitcoins, this platform can be of great help and if you are questioning its credibility, then make sure you read this Bitcoin Storm review. It will provide you with all the necessary information.
Now, let’s take a quick look at its history.
Creation
Bitcoin’s establishment takes us back to 2008 when a person that uses the pseudonym Satoshi Nakamoto created this cryptocurrency. The first official transaction was completed in 2009 when Satoshi sold 10 Bitcoins to a cypherpunk, Hal Finney.
During its initial years, Bitcoin was mainly used on the black market and was deemed as illegal in every country in the world. In 2011 and 2012, Bitcoin experienced a small surge in popularity which is why its price started going up. In early 2014, the price for 1 Bitcoin rose to $770, but after a few raids by US authorities, most of the Bitcoins on the market were erased, so the cryptocurrency went in a crisis period.
After 2 years of trying to go back to its normal state, Bitcoin finally managed to achieve it in early 2017.
2017 – A Historical Year
Not only did it stabilize in 2017, but this year was one for the history books. Bitcoin’s price was going up throughout the year and it peaked on December 27. On this day, the first record-breaking value was achieved and Bitcoin was valued at a little below $20,000. But, since the market was overflown, its price plunged and Bitcoin entered another rough period.
The Rough Period and Resurgence in 2020
The cryptocurrency spent the whole of 2018 and most of 2019 trying to get back to its formal glory. But, the path was difficult and Bitcoin was struggling to record a rise in value. 2020 was the year when the cryptocurrency finally managed to stabilize.
Several factors which indicated that Bitcoin can spike in value again caught the eye of some experts. Not only did they believe that Bitcoin will rise once again, but the cryptocurrency also had the potential to top the record made in 2017. The reason for that was because the infrastructure was growing, the interest was high, its hash rate was finally stable, and Bitcoin recorded its second-lowest volatility (the first was in 2017.
This prediction came to life as Bitcoin topped $20,000 in mid-December. As of January 2021, the price of 1 Bitcoin is over $37,000 and some experts believe that it can go as high as $50,000.