Where Did Bitcoin Come From

Where Did Bitcoin Come From

Origin of Bitcoin

2008 Financial Crisis…

After the aftermath of the 2008 Financial Crisis people from all over the world felt the effects of

where-did-bitcoin-come-fromthe weakening economy. Interest rates dropped to nearly zero while central banks flooded the markets with liquidity to avoid a duplication of the 1930s Great Depression. Still to this day there are many countries that are continuing to struggle as their own fiat currencies are depreciating.

 

Our global institutes that were the root cause behind the 2008 Crisis were never held accountable but instead joined forces with our governments. Our governments then proceeded to bail out the very same financial institutes and bankers whose reckless behavior had brought about the crisis in the first place. This entail further devalued our fiat currencies which has lead to an increase in taxpayers liabilities and the trillions and trillions of dollars of debt.

The Bitcoin Software Developer…

It was as this point that developer Satoshi Nakamoto created the Bitcoin Protocol Software a decentralized financial system that is not owned by any Government agency or controlled by any Central Bank. Satoshi and other Cryptographers wanted to develop a worldwide currency that was completely different from our current financial infrastructure that was going to be the disruptive
technology of the banking industry.

Where did Bitcoin come from?

The protocol software that was released in 2009 over the world wide web for Bitcoin is a Deflationary Currency with no more than 21 million Bitcoin being released worldwide with the last one being released in the year 2140. The core Bitcoin technology known as a blockchain has been open source from the beginning for everybody to see.

 

The protocol was set up beginning with 50 Bitcoin being released every 10 minutes and that amount going in half every 4 years until the year 2140. Unlike our current inflationary fiat currencies this means that less and less of an asset is made available to the world market as more and more people around the world start using the asset which will cause the price to rise and the value of the asset increases.

 

The Beginning Of The Internet…

 

Bitcoin-Rate

 

Cast your mind back to when the Internet first got started around 1994 the general consensus was
that people were very skeptical of a technology that they new very little about. As evolvement and education occurred and companies such as Google, Facebook, Youtube and Amazon appeared this introduced people to a new way of communication and doing business anywhere in the world simply by using a computer, that skepticism was soon forgotten.

 

 

 

Bitcoin and it’s technology right now is where the internet was in 1994. People are very skeptical as they know very little about the function of this new technology, how it works and the advantages that it has over our current monitory systems.

 

The Distinguishing Factor…

 

The key factor that distinguishes Bitcoin apart is that it’s the first decentralized digital currency. What this means is that everybody is apart of the Bitcoin ecosystem, and you can contribute or be bitcoin-exchangeinvolved in anyway that you would like to.

 

Bitcoin is a peer-to-peer network which belongs to everybody. You do not have to rely on any bank, government or middleman so to speak. Anybody in the world can use Bitocoin for exchange of goods and services or you can set up your own business and accept Bitcoin payments in a matter of minutes.

 

 

Bitcoin and Papa John’s Pizza…

 

The value of the first recorded Bitcoin transaction happened in 2010 when a Papa John’s pizza business accepted 10,000 Bitcoins for 2 pizza’s. The value of Bitcoin was soon set to fractions of a cent a Bitcoin in 2010. One Bitcoin is now worth hundreds of dollars and is estimated to reach $10,000 per Bitcoin by 2020. Click Here.

 

Is Bitcoin in your Portfolio!

3 Responses so far.

  1. Riaz Shah says:

    Hey Grant,
    Cool, I’ve always wondered how Bitcoin came to be! You’ve explained it in great detail and Satoshi is really clever to create a digital currency which is not attached to the bank.

    The thought of it sounds really cool as it is but I have a question though, if everything is digital, wouldn’t it be prone to digital attacks by hackers? As secure as our systems might be, what if there are times when we won’t have access to our computers like a major blackout?

    • Grant says:

      Hi Riaz,

      One of the hardest underlining factor’s to understand with Bitcoin or digital currencies is that it’s not linked to any bank and no government agency has any control over. It is a peer to peer network in which anybody can participate in or use the technology.

      Technology has advanced greatly to protect each individual from online hackers. This process starts with Securing Your Wallet. The level of encrypted security that is enforced with each wallet provider does vary but do remember that at the end of the day it is your responsibility to adopt good practise coupled with high levels of security (on/off line) to secure your Bitcoin.

      SECURING YOUR WALLET

      This is an outline of how the security process should start;

      1- Use a very secure Password. This means not using your dogs name, birthday dates, your children’s name etc. Use encrypted passwords that have Letters (High/Lower Case sensitive), Alphanumeric, Punctuation marks, symbols and keep your password private.

      2- Use a multitude of wallets and never leave large amounts of wealth on any exchange wallet.

      3- Use Two Factor Authenticator. This process is used when you link your wallet to the authenticator application on your phone, smart device etc and you are provided with a two step security process. You are provided with a security code that is valid for 30 sec which is sent to you on your phone/smart device, you then use this code to login into your wallet account. https://blockchain.info/wallet/google-authenticato

      4- Do regular backups of your wallets

      5- Use offline vaults and storage devices. Many wallet providers have secure high level offline vaults that you can store your Bitcoin in. The best vault provider would be https://xapo.com/vault/ but you do have to check if they are available in your country. The best offline storage device is called a Trezor. This device is very small and portable and allows you to make secure Bitcoin transactions which are only controlled by you. https://bitcointrezor.com

      6- Remember that a Bitcoin wallet is exactly like a wallet with cash in it. You don’t leave large amounts of cash lying around in your wallet or purse so use the same level of security with you Bitcoin Wallet.

      Blackouts and loss of electricity are apart of everyday occurrence which does affect all areas of life including all online transactions, Fiat Currencies, business, banking (credit cards, ATM’s) and probably most things that we all do on a day to day basis.

      Depending on the size and scale of the blackout do remember that all Bitcoin transaction can still be monitored through mobile or any smart devices. As I mentioned this would depend entirely if your mobile network had been affected by the power outage. If loss of electricity was to occur for example during a natural disaster well, lets just say that you would probably have more important things to worry about than whats happening in the digital currency world!

      If you follow the steps mentioned above in Securing Your Wallet and Bitcoin on/offline the security of your Bitcoin during any blackout, power outage or natural disaster will remain secure.

  2. […] By now you have probably done enough research and have a basic understanding about Bitcoin and crypto-currencies. If not, please check out my previous post “The Origin of Bitcoin.” […]

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