Short history of crypto

Written by Evgenia Sidorova
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Investing reporter
ECOS brand manager....
3   min.
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Short history of crypto

The history of the creation of cryptocurrency

It is worth noting right away that the cryptocurrency arose exactly at the moment when humanity began to need it. The instability of fiat money, inflation and the wave of crises that swept through many European countries contributed to the fact that society simply needed independent and reliable money.

In 2008, they first started talking about cryptocurrency, albeit in a rather narrow circle of IT specialists. The impetus for this was the publication of an article about the first virtual currency based on the principle of cryptography ― Bitcoin. A certain Satoshi Nakamoto outlined his concept of crypto money. And the conversations would have remained conversations, but a year later the Bitcoin network was launched, and then the first wallets, which laid the foundation for a new cryptocurrency era.

The bitcoin mining process has begun, albeit rather inactive. Many IT people did not fully understand what cryptocurrency is and what prospects it might have. Someone mined bitcoins for the sake of interest, someone still saw them as the money of the future. But probably no one, except for its creator, understood what heights the pioneer of the cryptocurrency family would be able to achieve. Satoshi Nakamoto mined bitcoins on special equipment, while everyone else used simple computers, which helped him take possession of 1 million coins.

By the way, it is not known for certain whether the founder of bitcoin was an individual or a whole group of individuals, but very soon Nakamoto disappeared. And along with it, a trace of a whole million cue balls was lost. Many economists argue that if Satoshi suddenly shows up and decides to sell his crypto-tokens, then this will wildly shake the bitcoin rate and arrange a real collapse for BTC holders.

Pizza worth 10,000 BTC

The Bitcoin system was being improved, errors and shortcomings were eliminated, and at that time, active mining of cryptocoins was carried out. Already in 2010, the first purchase for cue ball took place. One of the miners, who accumulated 10,000 BTC, exchanged them for two pizzas, which at the exchange rate of that time was equal to $50. This acquisition went down in history not only as the first incident of exchanging bitcoins for goods, but also as the most expensive pizza in the history of mankind – at the current rate, the purchase amounted to about 24 million dollars!

Pizza for 10 thousand bitcoins is far from the only case when the cryptocurrency was treated very dismissively. Tens of thousands of bitcoins disappeared along with the equipment on which they were mined. After all, many of their owners, after the PC went into a malfunction, did not consider it worthwhile to remove the hard drive with the now expensive crypt.

But the times of skepticism towards bitcoin have passed, its rate has begun to grow rapidly. And along with this, like mushrooms after rain, new cryptocurrencies began to appear – forks (from the English fork – a fork), altcoins, which are launched daily and it is already difficult to calculate the number of active cryptocurrencies.

Cryptocurrency mining

Thanks to the open source code, absolutely everyone who has computer equipment and an Internet connection can engage in cryptocurrency mining. At the same time, your personal computer will do just fine for the extraction of many crypto-signs.

The essence of mining comes down to solving complex mathematical problems, as a result of which new information blocks are opened, which are a certain sequence of ones and zeros. A person is not able to solve such problems on his own, but computer technology is quite capable of doing this. The solved blocks are transferred to the network, and the miner receives a reward in the form of crypto signs.

It is quite logical that the more unique blocks are solved, the more difficult it is to find new ones, and the technician has to put more and more effort into this process. It follows from this that the more this or that crypt has already been mined, the more difficult the process becomes and the less reward miners receive.

If you want to try BTC mining for free, then register on ECOS platform by pushing the button below

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