What a gift for Bitcoin! One day after its Birthday, Bitcoin arrived at new all time highs. A day ago, Bitcoin celebrated its ninth anniversary. On October 31st 2008, Satoshi Nakamoto released the whitepaper from which Bitcoin was born.
The term Bitcoin was used for the first time by Satoshi Nakamoto, who elaborated the white paper of this virtual currency. After the world crisis in 2007/8, this unknown person decided to create a new economic system based in technology. He decided to create an electronic payment system based in Blockchain technology.
The main reason why Satoshi created Bitcoin was because the financial system in which the world was involved was one based in trust. “What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party,” he wrote in the white paper.
Every time a person decided to make a transaction, a financial institution was involved in the process. Lot of unnecessary information was required in order to proceed with the payment. “These cost and payment uncertainties can be avoided in person by using physical currency, but no mechanism exists to make payments over a communication channel without a trusted party,” he stated.
In 2010, Bitcoin price was just some cents. In October 2010, one Bitcoin could cost $0.05 dollars. One dollar spent in Bitcoin at that time would now be $132,000 dollars. Just some hours ago, Bitcoin price arrived at new all time highs on its 9th birthday. Some exchanges were trading Bitcoin at $6650 dollars, meaning that this is the highest price ever recorded by the famous cryptocurrency.
One of the possible reasons about this new Bitcoin price could be because CME Group Inc,, a trading platform, will launch Bitcoin futures before 2018. In addition to it, Bitcoin price has seen an increase because of some institutional investors moving towards this cryptocurrency. Besides that, the Bitcoin hard fork on October 25th pushed the price up. The reason why this occurs is due to investors that own Bitcoin, before a hard fork, will have the same amount of Bitcoin in the new blockchain that splits.
At the moment of writing this article, Bitcoin was traded around $6600 dollars. It will not be strange that in the next days we would see a price correction. Some big investors who gained from these price uprisings would decide to take some profits from their investments.
In nine years, Bitcoin has shown an incredible resilience. The ability to promote itself again and again. In 2017, restrictions and regulations tried to shut Bitcoin down, but they couldn’t. The day of its birthday Bitcoin is giving an example of how strong this currency can be.