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Bitcoin: the history of the most expensive cryptocurrency

From 0 to 58 thousand dollars in 12 years

“Bitcoin is the highest aerobatics in the world of technology.” (c) Bill Gates

The history of the world’s main cryptocurrency began on October 31, 2008, when an unknown person under the pseudonym Satoshi Nakamoto published an article “Bitcoin: P2P Electronic Money”. In this article, he described the future bitcoin protocol – a set of rules according to which the created system was supposed to work.

All parts of the system were known before Nakamoto. The cryptographic algorithms behind Bitcoin already existed. Distributed data storage in decentralized networks has also been used.

Nakamoto’s genius was in the fact that it was he who assembled the individual pieces into a whole, built the system and made it work. The proposed system was truly revolutionary, nothing like this had existed before.

Satoshi Nakamoto said: “We have proposed an electronic transaction system where no one needs to take their word for it.”

Shortly after the publication of the protocol, on January 3, 2009, Satoshi generated the first block on the blockchain. At that moment, the first 50 bitcoins were mined.

Immediately after the appearance of bitcoin, its active development began.

The first bitcoin transfer transaction took place on January 12, 2009.

Already after 9 months, on October 5, 2009, the bitcoin exchange rate was first established. On the New Liberty Standart resource, one could exchange $ 1 for 1,309.03 bitcoins. That is, for 1 cent you could buy 13 bitcoins! You can compare this figure with today’s rate and understand how bitcoin has grown over time.

Experts believe that the main catalyst for the growth in the value of bitcoin since the spring of 2020 is the open recognition of cryptocurrency by large financial institutions, investors and leading businessmen. They began to invest in virtual coins to protect their assets from inflation, which was caused by central banks by printing money and pumping it into the pandemic-stricken economy.

On Monday, the price of the cryptocurrency has reached a record high of $ 58 thousand so far. But financial experts advise to keep cool. There have been many ups and downs in the history of bitcoin, and no one can now say with certainty what will happen to it in a month, a year or ten years. It may grow more than the most rosy forecasts predict, and collapse – and the collapse will be, as usual, unexpected and terrible.

The important thing is that Bitcoin has ceased to be considered a means of settlements between all kinds of marginal people, leftist movements and network anarchists. Mining from something semi-legal began to turn into a completely legal business, and some manufacturers of equipment for generating bitcoin are now preparing for an IPO. I wonder if we will ever know what Satoshi Nakamoto thinks about this? If he actually exists …

What is Monero (XMR)?

XMR is a cryptocurrency also called Monero. Altcoin is based on a blockchain protocol, the main advantage of which is the ability to conduct transactions with a high degree of confidentiality.

TECHNICAL FEATURES MONERO

The main distinguishing feature of the Monero cryptocurrency is its privacy. Third-party users will not be able to track the operation on the network. There are such advantages of altcoin:

  • availability of the source code of the project;
  • lack of communication between transfers;
  • use of the PoW algorithm;
  • protection against blockchain analysis;
  • the ability to adapt to the needs of customers.

The founders of the project thought out the scheme of the altcoin existence after the completion of the emission of the main part of the funds. The payment network does not limit the issuance of digital coins. Since the release of 18.4 million tokens, miners will be able to count on a reward of 0.6 coins after the next block is opened. The blockchain of the project is based on the CryptoNote algorithm with the protection of the Cryptonight chain of operations.

SECURITY

The developers have implemented a number of innovations that allow you to get a reliable cryptocurrency. The following tools were used:

  • Ring signatures. Public keys are regularly “shuffled”, which precludes identification of network participants.
  • Application of one-time accounts. The Monero protocol allows for the generation of addresses on a regular basis. This hides the participant’s anonymity.
  • There is no chance of being hacked. The use of cryptographic algorithms excludes the success of hackers.

The positive characteristics quickly piqued the interest of the cryptocurrency community. For 2 years, the AppStore allows customers to purchase goods with Monero. You can pay for the game in the casino with virtual coins.

ADVANTAGES

There are several advantages that the payment system is endowed with:

  • lack of centralized control;
  • limited issue of tokens;
  • stable development of the project;
  • own wallet;
  • confidentiality of transactions;
  • community trust;

refusal of developers to follow the ideas of Bitcoin, altcoin does not depend on the volatility of the main cryptocurrency.

During its existence, the project regularly experiences ups and downs, but basically the dynamics of its development is positive.

DISADVANTAGES

Modern cryptocurrencies are associated with standard cons. For example, one transaction on the network exceeds the volume of Bitcoin transactions. The confidentiality of transactions, which the altcoin developers boasted, is regularly questioned by cryptographers. For example, one of the founders of the Zcash project announced the tracking of the blockchain network for two years until 2016. But no evidence was provided.

REASONS FOR MONERO’S POPULARITY

Experts recognize the project as one of the best in its field, based on its level of confidentiality. To preserve the anonymity of users, the following algorithms are applied on https://cryptex.net/trade/XMRBTC:

  • Confusion of addresses. Several one-time invoices are created for sending, which excludes tracking of the transfer.
  • Encryption of the transaction volume using Ring CT technology.
  • Ring signature as part of the CryptoNote protocol. She hides the true author of the transfer.

Just in 2 clicks you can change Bitcoin to Monero. Put the number of Bitocin you want to transfer.

To complete the desired operation, open a Monero wallet where the virtual assets will be transferred. After purchasing digital coins on the exchange, send them to your personal account.

During the existence of the Monero cryptocurrency, it has been positively characterized by many experts in the field of anonymity of transfers. The only drawback was the small number of network clients, which reduced the possibilities for anonymizing transactions. The popularity of the payment system has led to an increase in the level of confidentiality.