Cryptocurrency is considered to be a very new thing, and it might just be, when it comes to how popular it is. But, as Timothy Enneking explains, cryptocurrency itself goes pretty far back. In fact, the idea for cryptocurrencies came around sometime during the 1980s, though it wasn’t until the 2000s that crypto itself first came into existence.
Timothy Enneking Explains How Cryptocurrency Started
In January 2009, Bitcoin first came into existence, mined by a developer under the pseudonym Satoshi Nakamoto. Timothy Enneking explains that a headline from The Times newspaper was embedded into this initial block of the chain, making it a reference to the economic situation at the time, which involved the failings of a centralized financial system.
As Timothy Enneking explains, since cryptocurrency is pro-decentralization in finance, this was a statement being made. Around this time, Bitcoin had pretty much no value, and this remained true for a few months after it was formed. Up until November 2010, the value of Bitcoin was just under 30 cents. While it was a very small amount, it showed that Bitcoin did have value in the real world, and this was considered a step forward from the baseline.
Prices of Bitcoin started growing from here, reaching as high as $1,163 in November 2013 before a crash cut the value by almost $1,000.
Scams in Cryptocurrency and Worldwide Popularity by Timothy Enneking
The anonymity and decentralization of cryptocurrency was intentional, but according to Timothy Enneking, this made the currency very attractive to criminals. Bitcoin started getting stolen and people were scammed out of the money they had accumulated in digital wallets. This showed that security of the wallets had to be improved, and while these changes have been made, smaller crypto exchanges do still face hacks.
Regardless, from January 2016, the value of Bitcoin started rising again, reaching an astronomical high of $20,000 in 2017. It was around this time that a new blockchain was introduced into the crypto sphere: Ethereum.
Ethereum also made a difference in the world of crypto, by bringing in smart contracts and thus opening up more use cases for digital currencies. So far, Ethereum has generated over 200,000 different projects that use cryptocurrencies. This made it stand as the #2 cryptocurrency – a position it still holds today.
However, the hacks were not eliminated, and the regularity with which they occurred resulted in security concerns and financial regulations that brought the prices of cryptocurrencies down. Still, starting 2020, their prices grew again. With major companies making purchases of bitcoin, the value of the currency started rising, reaching record highs of about $69,000 in 2021.
Still, cryptocurrencies are not immune to the changes in the market. Rising inflation and interest rates have raised concerns about the economy, which has once again brought the market done. That said, the traditional financial market has also dropped, and research shows that these two markets are becoming increasingly intertwined.
Cryptocurrency is not very old, but it’s not all that new either. As awareness and usage grows, and the world becomes more and more digital, it will likely become just as much a part of our lives as the current financial system.