Of late, cryptocurrencies have only risen in popularity. The values of some of the digital assets have soared, and major investors have backed many of them, making the coins all the more attractive. Bitcoin, the world's oldest and most popular cryptocurrency, has, over the years, garnered the trust of investors. There have been endless discussions on various platforms about Bitcoin and its skyrocketing value, but do you know how it all started? If you are someone who is interested in the cryptocurrency market, the origin of Bitcoin is sure to grab your attention.
What is the origin of Bitcoin?
Nobody has ever seen the creator of Bitcoin. This digital currency was mysteriously created in 2008 and released as open-source software in early 2009. The creator of Bitcoin is a person or a group of individuals who worked under the pseudonym Satoshi Nakamoto.
In 2008, an academic white paper related to the concept of Bitcoins was uploaded with the title ‘Bitcoin: A Peer-to-Peer Electronic Cash System.' It mentioned the digital currency that stands bereft of any government interference. No organisation or government will have control over it.
In 2009, the software was finally released and launched the Bitcoin network. Today, the software is open source and anyone can view it and contribute.
Bitcoins work on three main principles — demand and supply, cryptography, and decentralised network. If you noticed, Bitcoins and, basically, the idea of digital currency was introduced after the world saw the financial crisis in 2008.
Later, from 2011, many rival cryptocurrencies began coming into circulation.
How does Bitcoin work?
Bitcoin is the oldest cryptocurrency in the world. It is a digital currency that is often used to exchange value for goods and services. Bitcoins work on the principle of blockchain technology. Bitcoins can also be mined or produced using a massive computing system, complex technical process, and an active internet connection.
People have traded in Bitcoin for over a decade now. Many companies have even started accepting Bitcoins as a payment method. The price of the coins has gone up substantially over the years. At the time of writing on Wednesday, Bitcoin was trading at ₹ 49.75 lakhs on the Indian exchange, CoinSwitch Kuber.
However, before trading, always remember — this virtual currency is highly volatile.