Your weekly News update 

This week we talk about Bitcoin! 

So let's dive in on some history:

Bitcoin was the first digital currency that succeeded. There were many attempts before, but none saw success until BTC came around.

The idea began around 1998 with Bitgold and B-money which did not work out. It was already 2008 when the Creator of Bitcoin appeared! 

This person, under the pseudonym Satoshi Nakamoto, posted his white paper called “ Bitcoin: a peer to peer, electronic cash system” to a community of cryptographers.

We still don't know who this individual is, there have been many people trying to claim the title, however, none have succeeded.

In 2009, the first software was released to the public, and the mining process was designated as the process by which new bitcoins are created, and transactions recorded on the blockchain.

2010 was when the real action began. Bitcoin had only been mined, and not traded yet, until an individual decided to make the first bitcoin transaction, where he bought 2 pizzas for 10 000 bitcoins. Yep, you heard (read) us right, 10 000!! That is now worth $670 000 000. This became known as  Bitcoin pizza day and is celebrated by Bitcoiners all over the world.

In 2011 ,rival crypto currencies known as “AltCoins” (alternative  coins) emerged onto the market. Using the idea of Decentralisation - where no single entity is in control, rather it is a network of “nodes” or computers that are all connected to the internet, and record every transaction ever made. These emerging currencies had different purposes, trying to be better or solve certain issues, within the Bitcoin system. Currently, there are well over 1000 different crypto currencies in the market, with more emerging everyday.

2013 was a challenging year for Bitcoin, as the price reached $1000 and elation hit the nation, however, shortly after, the price crashed to around $300. It took about 2 years to recover from that drop and rise back to $1000.

2014 is when the scams began , Bitcoin, with its unique value proposition, attracted the likes of criminals, also known as “bad actors” with ill intentions, trying to scam people and steal their money. This is when the big exchange known as Mt. Gox shut down, with over 744 000 Bitcoins never to be seen again after an alleged theft. Investigations are still ongoing to determine exactly what happened to those coins. That would be over $4 Billion currently. Crazy, right! 

This generated a lot of stigma and negative air around Bitcoin, and many people became fearful of investing. 

2016- Bitcoins rival coin Ethereum began to grow, with a slightly different model known as ICO (initial coin offering), similar to fundraising, where users can invest early in projects with the hope of great returns in the future. However, the SEC mentioned that this could cause great opportunities for ponzi schemes, and they should proceed with caution, which was followed by China completely banning crypto. 

In 2017 Bitcoin hit its great height of $10 000, which caused many large investors to quickly realize that blockchain technology is a game changer, not just for crypto, but for many other industries as well. Bitcoin was also accepted as payments in many more places which improved its exposure and use case. 

And to where we are currently, in 2024, so far, the Spot ETF was accepted, and enormous companies such as Blackrock, began trading on behalf of their clients. This changed the game, and shortly thereafter Bitcoin shot up to $73 000. 

Top Tip:

 Remember there are only 21 million bitcoins available. There can never be more and this is what gives it scarcity, making it more attractive.

When you do buy Bitcoin, remember to keep your recovery seed phrase safe. If you are holding Bitcoin on an exchange, we suggest moving it to cold storage devices for enhanced security.

We will discuss this more in next week's newsletter, where we will explain the Bitcoin halving and Bitcoin mining in greater detail.

There are constantly many new additions to Bitcoin, and the community. as well as all the other crypto projects that exist, many offering different benefits and amazing opportunities and others offering scams and headaches.