Hello everyone here on our blog ELECTRONIC CONNECTORS! Today's ICT is changing more things in the world, more businesses on internet and many governments look for how they can increase the economic development of the their countries.
But now the domination of cryptocurrencies is more increasingly day per day. The most leading cryptocurrency is called bitcoin which is equal to US Dollar $15300
Read more about its history and its future prediction
Since 2008, bitcoin
adoption has been influenced by a diverse range of factors that have made it
one of the most volatile currencies in the world. Yet, despite such volatility,
more than 100,000 bitcoin transactions are taking place per day and
the volume continues to grow due to the ‘permissionless innovation’ provided by
bitcoin’s underlying technology, the blockchain.
As the blockchain
matures, bitcoin will increasingly resemble traditional financial services,
with functions such as retail banking (Circle), exchanges (Coinbase)
and payment processors (bitnet) being created. But how did it all start
off, and where will it go next? Here, we take a brief overview of the major
milestones in the cryptocurrency’s brief history and look to where it might be
headed in the future.
August 2008
Three individuals, Neal
Kin, Vladimir Oksman, and Charles Bry file an application for an encryption
patent application. All three individuals deny having any connection to Satoshi
Nakamoto, the alleged originator of the Bitcoin concept. The three also
register the site Bitcoin.org in the same month, over
on anonymousspeech.com – which allows people to buy domain names
anonymously.
October 2008
Despite the above, Satoshi Nakamoto releases his white paper,
revealing his idea for a purely peer-to-peer version of electronic cash to the
world. In his vision, he manages to solve the problem of money being copied,
providing a vital foundation for Bitcoin to grow legitimately.
January 2009
The first block, nicknamed ‘Genesis’ is launched allowing the
initial ‘mining’ of Bitcoins to take place. Later that month, the first
transaction takes place between Satoshi and Hal Finney, a developer and
cryptographic activist.
October 2009
Bitcoin receives an equivalent value in traditional currencies.
The New Liberty Standard established the value of a Bitcoin at $1 = 1,309 BTC.
The equation was derived so as to include the cost of electricity to run the
computer that created the Bitcoins in the first place.
February 2010
The world’s first Bitcoin market is established by the now defunct
dwdollar.
May 2010
A programmer living in Florida named Laslo Hanyecz sends 10,000BTC
to a volunteer in England, who spent about $25 to order Hanyecz a pizza from
Papa John’s. Today that pizza is valued at £1,961,034 and stands as a
major milestone in Bitcoin’s history.
August 2010
Bitcoin is hacked. A vulnerability in how the system verifies the
value of Bitcoin is discovered, leading to the generation of 184 billion
Bitcoins. The value of the currency from a high of $0.80 to $1 in June drops
through the floor.
October 2010
Bitcoin goes under the spotlight. After the hack in August – and a
subsequent discovery of other vulnerabilities in the blockchain in September –
an inter-governmental group publishes a report on money laundering using new
payment methods. Bitcoin, it suggested could help people finance terrorist
groups.
November 2010
Bitcoin reaches $1 million. Based on the number of Bitcoins in
circulation at the time, the valuation leads to a surge in Bitcoin value to
$0.50/BTC.
January 2011
The Silk Road, an illicit drugs marketplace is established, using
Bitcoin as an untraceable way to buy and sell drugs online.
February 2011
Bitcoin reaches parity with the US dollar for the first time. By
June each Bitcoin is worth $31 giving the currency a market cap of $206
million.
June 2013
The first major theft takes place. Bitcoin Forum founder allinvain
reports having 25,000 BTC taken from his digital wallet, which had an
equivalent value of $375,000. In the same month, a major breach of security
sees the value of the currency go from $17.51 to $0.01 per Bitcoin.
March 2013
The US Financial Crimes Enforcement Network (FINCEN) issues some
of the world’s first bitcoin regulation in the form of a guidance report for
persons administering, exchanging or using virtual currency. This marked the
beginning of an ongoing debate on how best to regulate bitcoin.
March 2013
Bitcoin market capitalisation reaches $1bn.
August 2013
Federal Judge Mazzant claims: “It is clear that Bitcoin can be used as money” and “It can be used to
purchase goods or services” in a case against Trendon Shavers, the so-called
‘Bernie Madoff of bitcoin’. Bloomberg begins testing bitcoin data on its terminal. Although
alternative tickers exist, endorsement from Bloomberg gives bitcoin more
institutional legitimacy.
November 2013
Bitcoin price climbs to $700 in as the US Senate holds its first
hearings on the digital currency. The Federal Reserve chairman at the time, Ben
Bernanke, gives his blessing to bitcoin. In his letter to the Senate homeland
security and government affairs committee, Bernanke states that bitcoin “may
hold long-term promise, particularly if the innovations promote a faster, more
secure and more efficient payment system”.
December 2013
China’s central bank bars financial institutions from handling bitcoin transactions.
This ban was issued after the People’s Bank of China said bitcoin is not a
currency with “real meaning” and does not have the same legal status as fiat
currency. The ban reflects the risk bitcoin poses to China’s capital controls
and financial stability. Today China remains the world’s biggest bitcoin
trader, with 80% of global bitcoin transactions being processed in China.
January 2014
Bitcoin custodians Elliptic launch the world’s first insured
bitcoin storage service for institutional clients. All deposits are
comprehensively insured by a Fortune 100 insurer and held in full reserve. This
means Elliptic never re-invests client assets; instead they secure them in deep
cold storage. Overstock.com becomes the first major online retailer to
embrace bitcoin, accepting payments in the US. Overstock was the first in what
is now an expeditiously growing list of large businesses that accept bitcoin.
February 2014
HMRC classifies bitcoin as assets or private money, meaning that
no VAT will be charged on the mining or exchange of bitcoin. This is important
as it is the world’s first and most progressive treatment of bitcoin, positioning
the UK government as the most forward thinking and comprehensive with regard to bitcoin taxation.
June 2014
The US government auctions off more than 29,000 bitcoins seized from the Silk
Road, the illegal online marketplace. The sale and closure of the
marketplace marks growing institutional understanding of the potential use
cases of bitcoin. Additionally, the closure and auction of the Silk Road has
helped bitcoin gain legitimacy as it demonstrates that bitcoin is not an easy
way for online criminals to avoid the rule of law.
From this point onwards bitcoin can no longer be considered as a
currency for criminals. The use of the bitcoin blockchain means that the
identity of users can often be established.
July 2014
The ‘Bit Licence’ edges towards reality as the New York State
Department of Financial Services releases the first draft of the agency’s proposed
rules for regulating virtual currencies. The European Banking Authority
publishes its opinion on ‘virtual currencies’. Their analytical report
recommends that EU legislators consider declaring virtual currency exchanges as
‘obliged entities’ must comply with anti-money laundering (AML) and
counter-terrorist financing requirements.
The EBA report is important as
it acts as a catalyst to launch bitcoin into the financial
mainstream by highlighting the fact that virtual currencies require a
regulatory approach to strive for an international coordination to achieve a
successful regulatory regime.
Also that month GABI (Global Advisors Bitcoin Investment
Fund) launches the world’s first
regulated Bitcoin Investment fund. This is important to the bitcoin
ecosystem as the launch of this investment vehicle adds further legitimacy to
bitcoin in addition to allowing regulated investors a way to invest in bitcoin.
August 2014
The Chancellor of the Exchequer, George Osborne, demonstrates his
and HM Treasury’s positive outlook on bitcoin when he purchases £20 worth of bitcoin and announces HM Treasury’s Call
for Information on digital currencies, offering digital currency businesses
the chance to comment on the risks and benefits and potentially influence
future government policy.
October 2014
TeraExchange announces that the first bitcoin derivative
transaction was executed on a regulated exchange, adding a new hedging
instrument to bitcoin and instilling credibility and institutional confidence in the
entire bitcoin community.
December 2014
Tech giant Microsoft begins accepting bitcoin payments.
January 2015
The New York Stock Exchange is a minority investor in Coinbase’s
$75M funding round. The NYSE aims to tap into the new asset class by bringing transparency, security
and confidence to bitcoin.
March 2015
The results of the UK Treasury’s call for information on
digital currency are announced.
Future predictions
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