Readers, in the previous article on cryptocurrencies, we briefly mentioned Bitcoin as one of the best-selling and widely used cryptocurrencies in the digital currency market.
In fact, this cryptocurrency with a symbol similar to the Thai Baht is also the digital currency with the highest market price of all.
Moreover, its controversial yet viral appearance in countries like Indonesia has made this article available to quench your thirst for knowledge of the Bitcoin facts.
The following are the points that will lead us to get to know the most popular cryptocurrency among technology literates, from its history to its strength in the market, which made its price soar:
1. The Beginning of Bitcoin and Its Success Stories
Bitcoin was originally formed in 2007, but was registered as a currency only on August 18, 2008, 3 days after Neal Kin, Vladimir Oksman, and Charles Bry made patent claims related to the creation of the Bitcoin concept.
The development of Bitcoin over time shows significant developments. At the beginning of the availability of Bitcoin for transaction purposes in 2009, Bitcoin has been registered in dozens of website domains and continues to grow until now.
With the increasing difficulty level of trading and the various cryptocurrencies under it, on November 6, 2010, Bitcoin finally broke the USD 1 billion equivalent on MtGox, the marketplace containing all cryptocurrency transactions. The US dollar exchange rate is also strong, $ 0.5 per BTC (the name for nominal Bitcoin), allowing the purchase of large amounts of Bitcoin.
In addition, Bitcoin is starting to be accepted everywhere. The famous Milestone Bitcoin is a real-world pizza transaction of 10,000 BTC on May 22, 2010, which successfully catapulted Papa's Specialty, the brand that gave it, as the world's most expensive pizza provider. . Subsequent real-world products also began to follow suit, even as socks were purchased using Bitcoin.
In addition, WordPress, the world's leading blogging site, also started accepting Bitcoin as an official hosting payment tool on November 15, 2012. Its exposure in various media increased rapidly, including during a talk show hosted by Adam Levine on March 17, 2013.
2. The Bitcoin Failure Story
There is no ivory that is not cracked, including currency that is not always perfect. Like any successful currency, Bitcoin has its own failure story.
In addition to its value that seems to continue to increase, Bitcoin has also experienced a decline in value of up to $ 0.06 per BTC before experiencing a slow increase on October 7, 2010. On August 30, 2011, Bitcoin has decreased in value by the same amount as its currency, fortunately customizable to block 143,136 transactions.
It did not stop there, Bitcoin also had "enemies" with Paypal on June 4, 2011, where Bitcoin transactions were stopped due to indications of fraud. In addition, Bitcointalk.org, a site that stores Bitcoin visitor and customer data, also encountered a hacking problem on October 2, 2013.
Even today, Bitcoin is still not fully accepted in some parts of the country, including China, which for several years has strongly opposed the circulation of Bitcoin. Another country similar to China, namely Russia, also has a "counter-Bitcoin" policy, which does not allow transactions other than in currencies issued by the Russian government.
The 2 Main Reasons Behind The Soaring Price of Bitcoin
1. The era of "Paperless Transactions" is supported by Bitcoin's Strong Position in the Market
Although "paperless transactions" are no longer an open secret, the digital currency technology embedded in Bitcoin gives us a new perspective on a true "paperless transaction" perspective.
The presence of cryptocurrencies such as Bitcoin is a sign that the currency we use for transactions is getting "digital". If this is combined with other technologies such as fintech or digital wallets, it is no wonder that the price of Bitcoin on MtGox, the cryptocurrency market, or even the world market, is currently and has the potential to increase over time. .
The increase in the price of Bitcoin is also supported by the world community who increasingly tend to choose Bitcoin as a transaction tool compared to banknotes or coins, including Indonesia. With the opening of new Bitcoin mining "ground", Bitcoin has the potential to shift the world's financial markets, including global financial reserves.
If this happens, then the price of Bitcoin compared to other currencies that already exist in the world will increase along with the weakening conditions of the conventional currency market. In other words, the era of "paperless transactions" in Bitcoin is not only a matter of payment, but also the value of its currency which is getting higher due to consumer demand and the prominence of Bitcoin in financial markets.
2. Limited Amount of Bitcoin with High Demand
These two things are also the most fitting reasons to explain why the price of Bitcoin is getting more expensive from month to month. When viewed from the number of Bitcoin circulating on the market, the amount is not comparable to conventional currencies that are well known to the public.
The circulation target is not grandiose, which is only 21 million Bitcoin in 2024, which amount is inversely proportional to the circulation of other currencies which amounts to trillions or billions of rupiah. In Indonesia, the number of Bitcoin is very limited, which is less than 10 billion per year.
However, there are a growing number of Bitcoin enthusiasts. With ease of transactions and a secure verification process compared to conventional currencies, it's no wonder many people want Bitcoin, including traders and investors who trade Bitcoin and make billions of rupiah in profits from Bitcoin.
Many enthusiasts have created an increasingly urgent demand, on the one hand the limited amount has made Bitcoin continue to produce and increase its selling price. So, it's no wonder that Bitcoin currency has become expensive.
Even though Bitcoin has experienced a fall, we know that Bitcoin is a type of digital currency that has a bright future with a high price and a history of success. The two main historical records and the reasons behind Bitcoin's price increase outlined above can tell us a lot more about the fame of this digital currency, which many people may not know yet.