The most widely known digital currency talks about the development of Bitcoin

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The market is a big stage. Not all stories can be stated. People need a certain kind of belief to motivate and restrain them. In the past, smiling without regrets was the only way to be beautiful; game, smiling in tears, only to be colorful; success or failure, smiling in the strong, only wonderful!

I believe that many friends who have just entered the currency circle only know that Bitcoin is a currency and have no idea about its development process. In fact, this is not a good phenomenon. The Secretary thinks that it is It is necessary, this will give you a deeper insight and understanding in the currency circle! So now let my friends know the origin of Bitcoin.

1. The budding period: (2008~2010)

In 2008, the bankruptcy of Lehman Brothers in the United States triggered a financial crisis that spread to the world.

On October 31, 2008, a geek under the pseudonym Satoshi Nakamoto published a paper "Bitcoin: A Peer-to-Peer Electronic Cash System" (Bitcoin: A Peer-to-Peer Electronic Cash System) , The concept of "Bitcoin" appeared in front of the world for the first time. In this paper, Satoshi Nakamoto describes a distributed ledger and the peer-to-peer circulation model of Bitcoin.

On January 3, 2009, Satoshi Nakamoto dug up the first batch of Bitcoin on a small server in Helsinki, Finland. The founding block was born and Bitcoin was born.

However, in the initial period of time, after this whimsy came true, it did not attract many people to try it out, because of the value of Bitcoin and whether the technology behind it is trustworthy, people are still very confused about these issues. Therefore, there were very few people mining on the Bitcoin network.

A critical time came in May 2010 when a programmer named Laszlo Hanyecz bought two pizzas worth $25 with 10,000 bitcoins. The pizza incident looks incredible today, and people will be shocked that the 10,000 bitcoins were exchanged for only two meals. But its significance is extremely far-reaching, because this transaction means that Bitcoin has the price and exchange rate for the first time, and it is also the first case of using virtual currency to pay for real goods. In July, Bitcoin was first reported by the technology media Slashdot, attracting a large number of users.

Since then, Bitcoin has truly been regarded squarely by people and entered the public's field of vision.

In 2010, Satoshi Nakamoto began to hand over the affairs of Bitcoin to other partners. This year's WikiLeaks leak caused a lot of attention in the community. On December 12th, Satoshi Nakamoto published the last article on the Bitcoin Forum, and finally terminated all electronic communications.

Community veterans such as Satoshi Nakamoto are not like those who later regard Bitcoin as a tool of interest. They rely on their trust in Bitcoin and liberal idealism. Without them, Bitcoin may be dusted. Therefore, it is not an exaggeration to say that Bitcoin is a product of liberal beliefs.

2. Growth period: (2011~2014)

In 2011, other currencies began to appear in the digital currency market, such as Litecoin, which later competed with Bitcoin. Since the technical codes of Bitcoin are all open source, many currencies are established on the basis of Bitcoin's code to be restructured, and the currencies born in this way are later called altcoins. Most of the altcoins, like Bitcoin, can only be used for mining and transfers. There are no other specific use cases, so they all declined afterwards.

Some of the altcoins that have survived to this day have not been abandoned because of specific application scenarios or bright technologies, such as Dogecoin and Litecoin. However, with the continuous development of blockchain technology and the development of various emerging projects Appeared, and gradually declined and became marginalized.

In this year, there were two other major events. First, Mark Karpeles took over the Bitcoin exchange Mt.Gox and began its sinful life; in the same year, the dark web "Silk Road" (Silk Road) was established. , Began the dark trajectory of Bitcoin.

As there are more and more bitcoins in the market, the trading volume has also increased. The bitcoin exchange Mentougou, established in 2010, suddenly occupied 70% of the global trading volume share and became the largest exchange at that time. However, due to poor management, Mentougou's trading system is extremely fragile. Several times of maintenance and optimization are still of no avail, and withdrawals and services are often suspended.

In June 2011, Mentougou was attacked for the first time by hackers, but since then, the operators of Mentougou have never been able to solve the loopholes in their trading system. They have been stolen many times but concealed the facts, constantly using suspension of services and freezing of transactions to disguise. The Bitcoin price on its platform has exaggerated rises and falls, and the floating range is very large. At this time, Mentougou is prone to problems, making it difficult for users to manage and operate their accounts.

In February 2014, the price of Bitcoin on Mentougou plummeted by 80%, but it was difficult for users to withdraw it again; soon, Mentougou suspended trading and withdrawal functions as always. The anger that users had accumulated for a long time finally broke out, but it was of no avail, because Mentougou had already run out of oil, and the fact that 850,000 bitcoins had been stolen was disclosed on the 25th.

The stolen 850,000 bitcoins in Mentougou became the biggest news in the currency circle that shocked the world at the time, and it also became an indelible piece in the history of bitcoin development. After the bankruptcy of Mentougou, the price of Bitcoin plummeted, and users who suffered huge losses began a difficult road to rights protection. As soon as this incident occurred, the Bitcoin market was severely shaken. People's trust in Bitcoin and exchanges dropped to the freezing point. There were serious doubts about the concept of decentralization promoted by Bitcoin and blockchain, and the entire industry began to be enveloped in Amidst the clouds.

Bitcoin suffered a great loss after the Mentougou incident, and the price of the currency has been depressed for a long time. Two years later, with the recovery of the entire cryptocurrency market, Bitcoin has regained its vitality; the dark web has also ushered in a two-year period of stability. Among them, the circulating Bitcoin still occupies the largest Bitcoin trading market. Share.

3. Expansion and bifurcation period: (2014~2017)

After the trend of altcoins, many projects began to focus on the application of digital currency beyond peer-to-peer transactions, and the expansion of blockchain applications began. For example, BitShares, the first decentralized exchange that was born under the influence of the previous centralized exchange such as Mentougou, adopted a new encryption code and consensus mechanism. The distribution mechanism also adopted the emerging ICO (Initial Coin Offering). Issuance), similar to public offerings in the stock market, using tokens as stocks for financing.

ICO first appeared in 2013. Mastercoin (OMNI) was one of the first blockchain projects to conduct ICO. The initial ICO raised Bitcoin with the highest market value. This method of distribution caused countless projects to follow suit. However, in the ICO projects, there are generally mixed conditions, and many projects are scams.

In 2014, the establishment of Ethereum opened the milestone of blockchain 2.0. The development and application of public chain technology enabled blockchain and digital currency to be applied to a wider range of scenarios. Although Ethereum uses the PoW consensus mechanism, the distribution of the token "Ethereum" is also in the form of ICO, and has achieved great success, becoming the second largest digital currency with a market value of only Bitcoin.

The problem of Bitcoin's expansion has not been resolved for a long time, which has harmed the interests of many miners. The core development team, the backbone of the Bitcoin community, put forward the proposal of Segregated Witness (SegWit). After unanimous negotiation between developers and miners at that time, the "Hong Kong Consensus" was finally reached: First, perform segregated witness on some blocks and remove the non-isolated parts. The expansion to 2M is in isolation.

The prosperity of ICOs and bifurcated coins is a manifestation of the prosperity of the entire blockchain market, and the chaos in it is also emerging one after another. The occurrence of air projects and air coins has dazzled speculators. At the same time, the lack of supervision has also exacerbated the occurrence and rampantness of these chaos.

At the end of 2017, the price of Bitcoin skyrocketed, reaching a peak of $19,299 on December 18. Bitcoin, as the top digital currency, reflects the trend of the entire cryptocurrency market, so various tokens have skyrocketed with the big market. Throughout the winter, the cryptocurrency market was full of spring.

4. Confusion period: the era of blockchain 3.0 (2018)

After the New Year in 2018, the upsurge of the market began to fall, but it has not bottomed out for nearly half a year, and the market has begun to enter a cold winter. During this year, the market value of Bitcoin has also shrunk significantly, but the Bitcoin network is still operating normally.

Many people in the currency circle have begun to be confused again, and many projects have also begun to panic, but the blockchain technology has never stopped, and the blockchain 3.0 era has arrived. Excluding the financial and commercial public chain fields, the tentacles of the blockchain have begun to extend to non-commercial fields, and into various fields of social life such as copyright, data, medical care, food, and renting.

Although the blockchain industry is still in its infancy in general, it seems that it has become very old for Bitcoin . Bitcoin will still run smoothly, but the limitations of its application scenarios will make Bitcoin gradually become a means of preservation.

But will the development of Bitcoin itself stagnate or end there? Generally speaking, some people are not worried at all and think that this is the best destination of Bitcoin. It is not only the currency with the first market value, but also a symbol and belief; while some people think that with the development of blockchain technology With continuous development and widening of the scope of application, Bitcoin will gradually lose its current status and be replaced by later currencies.

It is hard to say what the future of Bitcoin is.

Five or ten years: coexistence of pursuit and doubt

After nearly a decade of development, Bitcoin has also been recognized by many countries around the world. Some countries have already accepted Bitcoin and regarded it as a payment method with the same status as legal currency.

Even if it has received a lot of recognition, different countries still adopt a wait-and-see or even boycott attitude towards digital currencies like Bitcoin. Many people think that although Bitcoin is supported by blockchain technology, its value in this aspect of technology is gradually decreasing compared with current and future technologies; Bitcoin does not have specific application scenarios as support, and it is one thing after all. In the bubble, many business leaders, such as Buffett and Jack Ma, showed a negative attitude.

In the past decade, Bitcoin has been both sought after and questioned. Many people later changed their views and believed that it was not a scam. Many people also believed that Bitcoin was still a bubble. But until now, Bitcoin is still the vane of the digital currency market, and it is still the most widely known digital currency.

Reminder: Investment is risky, you must be cautious when entering the market. This information is not intended as investment and financial advice.



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