In August 2017, the price of one Bitcoin exceeded $4,000 (approximately ￥40,000) for the first time in history. Domestic and international stock markets were in flux due to geopolitical troubles, the unstable rate of the US dollar, when compared to other currencies, etc. The term “emergency Bitcoin stockpiling” was born.
This article will explain the history of Bitcoin, including its creator and future potential.
The History of Bitcoin
Bitcoin was first proposed in a paper published in 2008, then released in 2009. After it’s introduction, it found quick success – market capital of Bitcoin exceeded 1.5 billion US dollars (about 165 billion yen) in 2013.
In the United States, purchases can be made with Bitcoin, amongst other uses. In Greece – where bank transactions have been restricted by the Euro crisis since 2009 – Bitcoin ATMs have become popular, and usage has spread internationally.
Unfortunately, in 2014, transactions briefly stopped due to the Mt. Gox incident. Embezzlement of customer property by executives was discovered at Japan’s largest Bitcoin exchange site. After this, the price of Bitcoin fell into a downward trend; however, it recovered and Bitcoin reached it’s highest value ever in 2017.
Who created Bitcoin?
Bitcoin started with an article published under the pseudonym Satoshi Nakamoto (real name unknown). In the aftermath of the Lehman collapse of September 2008, global financial markets were in shambles. In the paper published by Nakamoto in 2008, the author proposed Bitcoin: a new form of virtual currency without a central administrator, unlike fiscal currencies. This paper is only 9 pages long and includes Nakamoto’s email address on the first page.
Bitcoin was released in 2009, so although almost ten years have passed since the paper’s publication, Nakamoto’s identity has not been confirmed. He or she has become one of the biggest mysteries in the Internet and financial worlds.
How will Bitcoins be Utilized in the Future?
Compared to legal tender such as the US dollar and the Japanese yen, Bitcoins overseas remittance procedures take minutes rather than days, and exchange rates/processing fees are minimal. In Japan, shoppers can make purchases at consumer electronics retailers with Bitcoin. Transactions are instantaneous and low cost, so it has seen a rise in popularity thanks to this convenience.
Bitcoin has reached its highest value ever, so it is expected to play a role as a key virtual currency in the future. New virtual currencies are being developed exponentially, and there are even projects that aim to provide Wifi sharing and life insurance services.
These new services are often based on Bitcoin, so it has become the main virtual currency. In the future, it will be possible to pay for various services via Bitcoin, and it may be used as a means to solve the issues of legal currency.
When the concept of Bitcoin was proposed in 2008, it was expected to play a role as a means of settlement replacing fiscal currency. Lately, Bitcoin is becoming the fundamental currency and there are even companies that issue stock-like coins as a means of raising funds. Bitcoins have surpassed mere purchases and are beginning to be used as a replacement for stocks.