The Most Interesting Facts From the History of Bitcoin and the Relevance of Investments in Cryptocurrency

For it’s not so very long history, the cryptocurrency market have “survived” a large number of events. To date, cryptocurrency is the most dynamic industry, the development of which is often compared to a roller coaster. Its great ups are followed by equal downs. In this article we will talk about the history of digital coins, people, who paid attention to them at the very beginning and became rich (and those who were one footstep away from it), we will give you the answer to the main question: “Is it worth investing in crypto now or this ship has already sailed?” So, first things first.

Contents:
(please, click the topic to scroll down to it)

  1. When and how did digital currencies appear?
  2. How much could you earn if you had bought cryptocurrency in past years?
  3. The most popular stories of ups and downs in the cryptocurrency community
  4. How to buy and store Bitcoin?
  5. When is it better to sell cryptocurrency?
  6. Where can you pay with cryptocurrency today?
  7. How beneficial are the investments in cryptocurrency today?
  8. Conclusion

1. When and how did digital currencies appear?

The day, which is believed to be a benchmark, is October 31, 2008. That was the exact moment when a person (or group of people) under a pseudonym Satoshi Nakamoto published an article “Bitcoin: A Peer-to-Peer Electronic Cash System”. There was a detailed description of a working principle of a new decentralized electronic monetary system, where there was no need for intermediaries. Bitcoin network itself was launched in early January, 2009, the first block was found on the same day, the reward was 50 BTC.

At that time, only geeks were interested in Bitcoin, there was no particular interest among investors, funds, and especially government. In September, 2009, BTC received his first rate, which was equal to $1 for a little bit more than a thousand coins. But in several months the situation changed, new versions of the network were being released, vulnerabilities and problems were being solved, and then the interest of the users towards this innovation began to grow.

In 2011, the first cryptocurrency exchange MtGox appeared, it became the centre of the cryptocurrency industry at that time. The rate of the coin went up, it was 5-6 cents for one BTC. But in mid-2011 an incident happened, which slowed down the development of the industry for more than a year, MtGox exchange suffered a hacker attack. However, Bitcoin was unstoppable, since many users around the world had realised that it was not just another financial bubble, but a fundamentally new money format, in which there was no place for monopolies and intermediaries.

2. How much could you earn if you had bought cryptocurrency in past years?

Attention! Reading this paragraph may cause unrestrained urge to tear your clothes, hair, and possibly an attempt to bite your own elbow. We warned you, so we are not responsible for your emotional state. 🙂

Well, in reality, people who bought Bitcoin from 2010 to 2016, are now operating quite an impressive amount of currency.  Let us calculate, what would invested in BTC $1000 become in this time frame, as of the end of 2018. Let us start from 2017 and go into the past year by year:

  • the beginning of 2017 (the rate is about $1000, it was possible to buy 1 BTC), now $3 800, the increase is 380%;
  • the beginning of 2016 (the rate is $430, it was possible to buy 2.32 BTC), now  $8 816, the increase is 881%;
  • the beginning of 2015 (the rate is $313, it was possible to buy 3,19 BTC), now $12  122, the increase is 1212%;
  • the beginning of 2014 (the rate $771, it was possible to buy 1,29 BTC), now $4 902, the increase is 490%;
  • the beginning of 2013 (the rate $14, it was possible to buy 71,42 BTC), now  $271 396, the increase is 27 139%;
  • the beginning of 2012 (the rate $6, it was possible to buy 166,66 BTC), now $633 308, the increase is 63 330%;
  • the beginning of 2011 (the rate $0,05, it was possible to buy 20 000 BTC), now $76 000 000, the increase is 7 600 000%;
  • the first established bitcoin rate (2009-2010) $1 – for 1 000 BTC, it was possible to buy 1 000 000 BTC, now this is $3 800 000 000, the increase is 380 000%. That is the number of coins possessed by the mysterious creator of Bitcoin – Satoshi Nakamoto.

We want to remind you that such investment growth corresponds to the current rate of Bitcoin ($3 800), and not to the December peak, when the price per one coin grew up to $20 000.

3. The most popular stories of ups and downs in the crypto community

Let us start in the major key and talk about those lucky ones, who invested on time and doomed themselves to better lives.

  • Eric Finman
    He is the youngest cryptocurrency millionaire in the world. He is 19 years old and he has 403 BTC, which, according to the current rate, is 1.8 million dollars. He bought Bitcoins, when he was only 12 years old. His grandmother gave him $1 000, which he should have saved for college, but he chose the path of being a cryptocurrency investor. As the time has proved again, he made the right choice.
  • Winklevoss brothers
    These are the brothers, who sued 65 million dollars from Mark Zuckerberg, for stealing their idea and creating Facebook without them. From the total amount of compensation, they took 11 million dollars and bought Bitcoins. At the time of purchase, the coin was being traded for $120 per one coin. It means, that they bought approximately 91 666 BTC, according to the current rate it is 414 million dollars.
  • Chris Larsen
    He is officially the richest man in the world, who has made his fortune from cryptocurrency. He is a creator of the Ripple coin, which is now taking the 3rd place in the global Coinmarketcap ranking. Now Chris’s fortune is estimated at about 8 billion dollars.

There are a lot of people who made their fortune from cryptocurrency, in order to mention everyone, the whole book will not be enough. Therefore, let us move to those poor souls, who was a breath away from wealth, but lost it.

  • James Howells
    He was mining Bitcoin back in 2009 and treated it like a game, since at that time, no one could even dream about such future of BTC. He stopped doing this after a couple of years (at that time there were already 7500 Bitcoins on his wallet) and disassembled his old laptop. In 2013, he was cleaning his house and he threw away the hard drive, on which the Bitcoin wallet was. Literally, a few months later, when the coin reached $1 000, James remembered, that he threw away 7.5 million dollars. At present rate, his hard drive would cost 33.9 million dollars. It is really hard to imagine, what Howells suffered and is still suffering now.
  • Bitcoin pizza
    On May 22, 2010, two most expensive pizza in the history were sold. At that time, the cost of Bitcoin was nominal, and the first miners simply did not know what to do with their “funny money”.  And here, one user under the nickname “Laszlo” wrote on one of the Bitcoin forums that he would pay 10 000 coins to those, who would deliver him 2 pizzas. At that time, the deal looked completely normal, according to those rate, Laszlo did not overpay for his fatal lunch, but later in August, two pizzas cost him $600. As of today, Laszlo bought two pizzas for 45 million dollar.  Every year, May 22, is “celebrated” as Bitcoin pizza day.
  • Anonymous from Australia
    The person wanted to remain incognito, but still he told everyone his sad story. He started mining in 2009 and mined, as he says, thousands of coins (the exact number was not mentioned). After the complexity of the network had grown, he stopped doing this and transferred his wallet to USB-drive. He thought, that if coins were offline, nothing could happen to them.
    When, in the end of 2013, the Bitcoin rate reached $1 000, he remembered about his millions, but he faced a terrible disappointment, the flash-drive went off.

4. How to buy and store Bitcoin?

The sad stories mentioned above about the loss of Bitcoins, leads us to the next very important paragraph, which concerns purchase and storage of digital assets.

You may purchase bitcoins today in many ways:

  • on exchanges;
  • via online exchangers;
  • via offline exchangers (work only in large cities for now);
  • mining (not exactly buying, but still the process of getting coins).

You can store cryptocurrency:

  • on exchanges (the most convenient, but not the safest option);
  • on hot wallets;
  • on cold (hardware) wallets (the safest, suitable for long-time storage, does not imply daily use of assets).

5. When is it better to sell cryptocurrency?

Looking at the chart of capitalization of the cryptocurrency market, you can see, it consists of ups and downs with safety increase in a long-term perspective.


Source: CoinMarketCap

The answer to when it is better to sell coins will differ for a long-term and short-term (speculative) investors.

Long-term investors

Ideally – never. As it can be seen, the upward trend in the cryptocurrency market remains since his emergence. Certainly there are short-term and even more prolonged moments of correction, but historically, the market after them not only recovered, but also took new horizons.

The main piece of advice that will help the long-term investors to get maximum profit implies timely tracking of the news and preserving calm during the correction. There is no need to sell all of your Bitcoins after each statement of some expert that the cryptocurrencies are expected to result in dot-com crash. Such forecasts about cryptocurrency are made either by incompetent people or are a part of market manipulations. The information posted by mass-media should be strictly verified. It is also necessary to keep track of new perspective coins and try to invest into them a small percent of your savings at the earliest stages.

But still there are some cases when a coin should be sold:

  • ordinary scam;
  • not following the Road Map by team, which in future may cause the collapse of the coin.

Short-time investors (traders)

For those, who want to run their own capital, literally every single day, trading is the ideal option for multiplying investments. Here you can and must sell your assets, once there is an opportunity. Sometimes it is better to bear a small loss to put the funds into use and get a profit faster, rather than waiting for income from a drawn out deal. But, of course, it depends on the chosen strategy.

6. Where can you pay with cryptocurrency today?

Today, there is a sufficient number of goods and services in the world, that can be easily purchased for digital coins.  The most important factor here is the government. For example, in Europe, Germany, the Czech Republic, Spain, Austria, Belgium, Holland are the most developed in this regards. Slightly fewer places, where you can pay with Bitcoins, can be found in Bulgaria, England, Poland, Romania. Literally, there are several such places in France and in Ukraine.

In the Russian Federation cryptocurrency is not allowed, but in private you can find a sufficient number of offers to exchange goods or services for digital assets.

In the United States, it is also officially allowed to buy goods for Bitcoin in certain states: New York, Florida, California, Washington, and unofficially similar offers can be found all over the whole country.

Cryptocurrency became quite widespread in Japan, the land of the rising sun. A well developed trade for crypto is in Thailand, Malaysia, Indonesia, South Korea.

What exactly can be purchased for Bitcoin?

  • Real estate. Leading developer in the UAE, Knox Group, provides the opportunity to purchase luxury housing for Bitcoins. In New York, Manhattan, you can buy a VIP-class apartment for Bitcoin from the developer Magnum Real Estate. Such proposals are found everywhere, in almost all major cities on our planet.
  • Cars. As well as in the real estate, cars that you can buy using cryptocurrency are a premium class models. The biggest deals belong to the most technological sedan – Tesla Model S. And the country, in which there is the largest number of car dealerships and where  you can pay with BTC , is the Czech Republic.
  • Travels. Airlines are willing to accept payment in digital coins since 2014. Air Lituanica has even cancelled commission if you pay with BTC.
  • Education. The first was one of the universities in Cyprus. Now you can pay for your education in many major universities around the world (King College, USA; University of Cumbria, UK, etc.).
  • Electronics and software. In this area payment with cryptocurrency is common as nowhere else.
  • Other goods and services. Enormous amount of private advertisements which is presented around the world in completely different industries. As it can be seen, the number of places where you can pay with Bitcoin is increasing every year.

7. How beneficial are the investments in cryptocurrency today?

If you take a look at the BTC chart in 2018, you can certainly see an impressive correction and throwback from the peak value by 60-70%. There is no general answer to the question: “When is it better to buy Bitcoin?”, as we might need an ability to predict the future to tell. Everything we can is to analyze the industry for fundamental reasons for increase or decrease.

  • Fact #1 – the blockchain technology is very perspective, as it solves a number of problems (transparency, decentralization, security, etc).
  • Fact #2 – the number of new crypto startups in 2018 has increased in several times in comparison with previous years, it means that even if 1% of them succeeds, this will give the industry a new booster.
  • Fact #3 – in the long-term perspective, all investors are still in a huge plus.
  • Fact #4 – in 2018, cryptocurrencies were discussed for the first time at the G20 and all participants have found that it is pointless to forbid them, they need to be regulated and maintained.
  • Fact #5 – the potential for growth is still enormous, since the total capitalization of the cryptocurrency market is about $130 billion, while the monetary assets of humanity are estimated at $90 trillion.

8. Conclusion

The cryptocurrency market is developing in a very storming pace; for short time of its existence, it has already generated a large number of new millionaires. Of course, in order to buy a coffee or bread in any shop with cryptocurrency, there is still much more to be done.

Having analyzed tons of information, we can give you an answer to the main question, which concerns the relevance of investment in cryptocurrency. We believe that cryptocurrency is a still very promising area for investment. But it should be done with cold mind and without  counting on early enrichment. You should definitely diversify your portfolio, periodically, copy the data of your wallets on high-quality hard drives (preferably several), learn how to filter the information and not to fall into market manipulations. In this case, the chances of succeeding in this field are much greater.  

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Bitfury Launches Open-Source Music Platform Based on Blockchain

A UK-based mining firm, The Bitfury Group, has announced that it will launch a music platform which operates on the blockchain technology. This idea is not new, as  many other tech companies also tried to do such a platform.

The platform, named SurroundTM, will become a helpful tool for every musician, as it plans to create a new environment where it is much easier to manage the musicians’ affairs. In particular, the platform will simplify the process of transfer of copyright assets, the user will be able to see his/her output. Bitfury believes that SurroundTM will implement blockchain into music industry much further than anything ever before.

The CEO of the Bitfury, Stefan Schulz, commented:

“There is a very strong momentum for an open entertainment-related blockchain where market participants themselves would be participating in the market venue, not only from a transactional point of view.”

The company has offices in Europe, yet, it plans to expand the service and  establish offices in Tokyo, LA, Moscow, and Seoul. It also seeks the possibilities of providing a digital system for both monetizing and sharing intellectual property.

We remind you:

WordPress Launches Beta Version of Publishing Blockchain Platform

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Cryptocurrency Prices Today, January 21: Cryptocurrencies Fell into the Red Zone

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coingecko, Bitcoin (BTC) lost 4.2% in the past 24 hours. The price at the time of writing is $3527 per coin.

The other cryptocurrencies are also declining:

Bitcoin Cash lost 5.28% over the past 24 hours and costs $121 per coin;

Ripple dropped by 3.32% and is $0.31 in price;

EOS decreased by 4.66%, and its price is $2.36;

Litecoin fell by 7.04%, and its price is $30;

Cardano lost 5.63%, and its cost is $0.042;

Stellar decreased by 5.02% and costs $0.10;

IOTA lost 4.68%, and its cost is $0.30;

Dash dropped by 5.21%, and its price is $69;

Monero became cheaper by 4.22% and costs $44.

Over the past 24 hours, Ethereum lost 5.42%. The exchange rate of the coin is $117.

The total market capitalization rose to $118 billion. Bitcoin accounts for 52.5% of the total volume. In monetary terms, this is $62 billion.

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Cryptocurrency Prices Today, January 18: Cryptocurrencies Are Relatively Stable

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the Coingecko online platform, Bitcoin (BTC) added 1% over the past 24 hours. The price at the time of writing is $3611 per coin.

Cryptocurrencies are demonstrating both slight increase and decrease:

Bitcoin Cash added 0.61% over the past 24 hours and costs $129 per coin;

Ripple grew by 0.21% and costs $0.32;

EOS increased by 2.72%, and its price is $2.51;

Litecoin gained 1.1%, and its value is $31;

Cardano added 1.62%, and its cost is $0.046;

Stellar gained 2.44% and costs $0.10;

IOTA increased by 5.41%, and its cost is $0.31;

Dash grew by 2.21%, and its price $72;

Monero became more expensive by 0.35% and costs $45.

Over the past 24 hours, Ethereum added 0.66%. The rate of the coin is $123.

The total market capitalization is $122 billion. Bitcoin accounts for 52.4% of the total volume. In monetary terms, this is $64 billion.

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Cryptocurrency Prices Today, January 17: Cryptocurrencies Are on the Border of the Red and Green Zones

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coingecko, Bitcoin (BTC) lost 0.8% over the past 24 hours. The price at the time of writing is $3582 per coin.

Some cryptocurrencies slightly decreased, others added in price a little:

Bitcoin Cash lost 2.6% over the past 24 hours and costs $126 per coin;

Ripple dropped by 1.1% and is $0.32 in rate;

EOS added 0.34%, and its price is $2.44;

Litecoin decreased by 2.66%, and its value is $30;

Cardano grew by 1.3%, and its cost is $0.044;

Stellar fell by 1.73% and costs $0.10;

IOTA lost 3.42%, and its value is $0.29;

Dash dropped by 0.52,% and its price is $71;

Monero became more expensive by 1.21% and costs $45.

Over the past 24 hours, Ethereum lost 2.17%. The exchange rate of the coin is $121.

The total market capitalization rose to $121 billion. Bitcoin accounts for 52.4% of the total volume. In monetary terms, it is $63 billion.

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Crypto Exchange Bittrex Partners With Bitsdaq To Conquer Asia Market

One of the biggest US-based cryptocurrency exchanges, Bittrex, announced that it was partnering with Bitsdaq to open a special trading platform in Asia. This platform will provide different digital assets to the Asian investors.

Moreover, Bitsdaq will operate on Bittrex technology and will be built based on Bittrex’s experience in the blockchain.The platform will allow users to trade various digital tokens, including tokens a available on the Bittrex exchange.

The Chairman and CEO of Bitsdaq, Ricky Ng, said:

“We are honored to bring Bittrex’s extensive cryptocurrency options to the Asia market.….It takes a unique combination of advanced technology and financial expertise to launch an efficient, reliable and secure platform for trading digital assets in Asia. We found the ideal partner to help provide a safe environment for our customers and the entire community.”

In accordance with the statement, the Bitsdaq platform will control a lot of things connected to the management of the platform, such as customer support, marketing, sales and customised development. In addition, it will take care of customer operations.

The day of the launch is yet to be announced, though customers can pre-register for an account on Bitsdaq’s website.

We remind you:

Cryptopia Got Hacked, Crypto Exchange Is Suffering “Significant Losses”

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Coingecko Publishes Its Annual Crypto Report for 2018

The online platform Coingecko published it crypto report for the passed year of 2018, where it analyzed the most important events in the crypto industry, including the market trends, crypto thefts, ICO news, stablecoins, Bitcoin Cash wars etc.

As for the market tendencies, there is no doubt that 2018 was the year of collapse. The total market capitalization decreased by whopping 78.85%, with the main period of decrease falling onto Q4. Meanwhile, the trading volumes remained quite stable.

Regarding the top-5 coins in the rating, they decreased as follows:

  • BTC – by 73%;
  • XRP – by 82%;
  • ETH – by 84%;
  • BCH – by 93%;
  • EOS – by 66%

The largest crypto exchange by the end of 2018, according to the trading volumes, turned out to be Bithumb, followed closely by ZB.com and Binance.

As for stealing cryptocurrency, the estimated money loss from criminals and scammers amounted to around $867.45 million. The biggest crypto theft was Zaif hack which took place in September and resulted in the theft of $23.5 million.

The most popular blockchain platforms for creating decentralized apps became Ethereum, EOS, Steem and Tron.

The synopsis of the stablecoin development in 2018 looks the following way:

Thus, we can definitely see that though 2018 was a hard year for crypto and there were much more downs than ups, the industry is still afloat and developing. Hopefully, 2019 will be a better year.

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