Leading Founder: Nakamoto Satoshi
Founded: White paper published in 2008, started mining in 2009
Issue size: 21 million
Bitcoin (BTC), often called the first Cryptocurrency, was invented after the financial crisis of 2007–2008. It is decentralized, meaning it isn’t controlled by any bank or government, unlike fiat money, money made legal tender by government regulation. Bitcoin was a solution from the minds of the people who experienced the financial crisis, who did not trust the central banking system. Bitcoin became famous because of the supply limit; there’s only has 21,000,000. Some characteristic of Bitcoin include anonymity and cross-border transactions; these characteristic attract many investors and user. In recent years, the price of bitcoin has been rising. In 2017, the price hit the record high, $19,783.06 USD per 1 bitcoin. It’s been so important that it also affects the price of other cryptocurrencies.
Even though many cryptocurrencies are entering the market, it still has yet to affect the leading place of Bitcoin. This may be because Bitcoin has several attractive properties. For one, it allows users to spend money privately. Members are identified by the public keys rather than their “real world” identities. For many people, this is a desired level of privacy that traditional digital payment systems do not offer. There’s also value in its low-cost money transfers. Compared to other electronic payment systems, it has a very low transaction cost. Bitcoin’s transaction fee is not nearly as costly as the fees on money transfers brokered by banks’ day-to-day purchasing of normal goods. Lastly, the ability for day-to-day purchasing of normal goods. The average user will be able to use Bitcoin to purchase everyday goods. As the bitcoin market size grows, this will become increasingly common – the monetary value of bitcoin will (theoretically) stabilize, consumers will want to spend their bitcoins, and retailers will see the benefits of accepting bitcoin transactions.