Bitcoin History and Present
Bitcoin was created by a man with a fictitious name, Satoshi Nakamoto in 2009. It is the biggest cryptocurrency in the world by the measure of market capitalization & quantity of data stored on its blockchain. Bitcoin was one of the earliest virtual currencies that effectively recorded financial dealings and transactions on a protected and decentralized blockchain-based network.
In contrast to fiat money, Bitcoin uses blockchain, a decentralized ledger system to create issue, deal in and store up the cryptocurrency. As compared to conventional online payment systems & government-issued currencies, Bitcoin bids for the assurance of minimum transaction fees & are managed through decentralization. It offers free-of-cost online software to the public. Anyone can access & run the bitcoin node and store a personal copy of the Bitcoin blockchain. Its miners issue a new coin within 10 minutes. They keep the network going by adding up latest transaction data to the blockchain. Bitcoin’s popularity has withstood the fact that it is not a legal tender & is the inspiration behind the creation of many other cryptocurrencies broadly called Altcoins.
Major Catalyst of Bitcoin Surge
On 17th February 2021, Bitcoin rose to its highest peak of $52,000 for the first time. Price of virtual currency has soared by 80% since January. Market analysts have pointed out three major factors that are moving Bitcoin to the higher level.
1. Speculative buyers have jumped in after getting attracted by the media’s focus on the digital currency’s rise.
2. The participation of established money managers is transforming the cryptocurrency into a mature market.
3. Bitcoin is being regarded as a protection against inflation. As Bitcoin reaches new highs & achieve authenticity as an asset on the backdrop of interest shown by major U.S institutions, following are the few measures taken by big companies, large investors, banks and payment processors that have successfully made bitcoin mainstream &
talk of the town.
- May 2020:
Fund manager Paul Tudor Jones defines bitcoin as a store of value.
- Aug. 2020:
Michael Saylor-led business software firm MicroStrategy publicly declared purchase of
21,454 bitcoins for $250 million, the first of several investments in the cryptocurrency.
- Nov. 2020:
Positive public comments made by Billionaire investor Stanley Druckenmiller and
BlackRock fixed-income chief Rick Rieder in which they announced bitcoin as a gold
- Jan. 2021:
Investment bank JPMorgan Chase & Co says bitcoin could hit $146,000 if it becomes an
established & preferred safe-haven.
- According to asset manager CoinShares, Weekly flows into crypto funds and products
hit a record $1.3 billion and total investment reached a new peak of $34.4 billion.
- Feb. 2021:
Carmaker Tesla Inc announces it bought $1.5 billion in bitcoin and says it will soon
accept the cryptocurrency as payment for its vehicles.
- Bitcoin is owned by influential customers like; 169-year-old insurer MassMutual, asset
manager Galaxy Digital Holdings, Twitter CEO Jack Dorsey’s payments firm Square,
Canadian software company Snapper and coin miners Marathon and Argo.
- July 2020:
U.S. banking regulator, the Office of the Comptroller of the Currency, says national
banks and federal savings associations may provide cryptocurrency custody services
- Oct. 2020:
PayPal agrees to let customers keep bitcoin in their digital wallets and use it to shop at
the 26 million merchants on its network.
- Feb. 2021:
Mastercard reveals plans to support cryptocurrency payments across its network.
- BNY Mellon announces a new unit intended at helping & educating clients trade and
own cryptocurrencies and other digital assets.
Purpose Investments launches the world’s first bitcoin exchange-traded fund.
The parent company of Japan’s biggest online brokerage, SBI, states that it plans a
crypto joint-venture with foreign financial firms.