Eight years ago, 10,000 bitcoins were sufficient to get a couple of pizzas. Imagine having that amount of coins in your Bitcoin poker account right now. With the current price of the cryptocurrency, you could clean up the whole casino easily!
BTC rose from obscurity to mainstream recognition largely thanks to the insane surge in value it saw in 2017. Soon after, big-name brands started accepting it, Bitcoin gambling platforms became more popular, people began investing money in this cryptocurrency, and the general interest for Bitcoin reached an all-time high. Then, somewhat unsurprisingly, the price went down, sparking yet another heated discussion about the volatile unpredictability of the bitcoin.
Now, debates are all dandy as long as the participants know what they are talking about and the audience has at least some grasp of the matter. Neither of the above is true! The vast majority of experts are as clueless about the intricacies of the crypto markets as is the general audience.
The infographic below will not make you a marketing master. However, it will give you a much better understanding of the driving forces behind the world’s first cryptocurrency, how it came to be, who embraced it first, and how governments handle it.
Read through it and you will be better equipped to talk about bitcoin than 90% of the people, who are spewing wild predictions left and right.
Satoshi Nakamoto is the name used by the unknown person or people who developed bitcoin, as on Jan 3rd of 2018 Nakamoto owns $16.5 Billion in bitcoins. In 2015, Satoshi Nakamoto was nominated for a Nobel Prize in economic sciences.
BitInstant was a company that handled Bitcoin transactions. The CEO was working directly with a drug dealer who wanted to launder his money for trafficking. He ended up in jail. This hurts the reputation of Bitcoin, and brought a lot of negative media attention. However, Bitcoin has nothing to do with the scandal. The same as the Federal Reserve isn’t responsible for what people do with cash.
In New York City, they passed a law requiring businesses to have a “BitLicense” in order to legally operate using Bitcoin as a currency. This means they would still pay taxes to the IRS, and the FBI could still keep track of transactions. However, this defeats the purpose of what Bitcoin users are trying to do. Many businesses are refusing to sign the agreement and leaving New York instead.
Many companies like eBay have been interested in incorporating Bitcoin into their currency system, just like PayPal. However, they are cautious to integrate it, since it’s all anonymous. Without regulation, companies are not sure how to move forward.
“Mining” is a term for when computers have to decrypt a long string of code, and when they are finished, they are rewarded with a bitcoin. Every day, new Bitcoins are born. However, the longer Bitcoin exists, the harder it is to mine it. At its current rate, a computer would take over 400 years to mine one Bitcoin. It is possible to mine “alt coins” much faster than Bitcoin, but there is no way of telling if they will ever be as valuable.
They are preparing for the inevitable reality of converting (at least partially) to cryptocurrency, or at least incorporating it into the system that already exists.
In 2010, a man named Laszlo Hanyecz was experimenting in Bitcoin back when it was still very cheap. He decided to use 10,000 coins to buy two pizzas with his friends. At of the time this article was written, those coins would have been worth more than $40 million.