The cryptocurrency history began with the emergence of a digital currency Bitcoin, in 2009, created by a person (or group of people) under the pseudonym Satoshi Nakamoto. Bitcoin became not only the first cryptocurrency, but also the main example of the blockchain technology allowing to secure and record transactions in the distributed database.
The idea of Bitcoin creation appeared against the backdrop of the global financial crisis in 2008 when distrust in the traditional financial institutions and central banks increased. Satoshi Nakamoto offered a decentralized system where users were able to conduct transactions directly, without need to trust third parties. The first Bitcoin transaction was conducted in January 2009, from then on the cryptocurrency began to gradually gain popularity.
New cryptocurrencies have also appeared since 2010 when Bitcoin started to be used for real transactions. Litecoin, created by Charlie Lee in 2011, was one of the first alternatives to offer faster transactions. Platforms powered by blockchain were developed in that period, and Ethereum appeared in 2015. Ethereum offered not only the additional functionality to create smart contracts, but it also significantly expanded the range of possible usage of blockchain.
The cryptocurrency market began to grow rapidly by 2017; the public was astonished by the rise of the assets price rates. Main cryptocurrencies especially Bitcoin reached historical highs, and ICOs (initial coin offerings) became a popular way for blockchain startups to raise money. However, this prosperity was also accompanied by significant risks including fraud and lack of legal regulation.
The year of 2018 was the period of the correction on the market, and many cryptocurrencies were significantly decreased in value. The attention of regulatory authorities was attracted, and they started to develop rules to manage cryptocurrencies and protect investors. In the following years, interest in cryptocurrencies did not fade and continued to grow despite volatility and difficulties.
Due to COVID-19 pandemic and corresponding economic impact, the year of 2020 was landmark, as many investors began to consider cryptocurrencies (especially Bitcoin) as a protection mean against inflation and financial risks. Institutional investors such as Tesla and MicroStrategy companies, began investing in Bitcoin, so that the interest in this digital currency was significantly increased.
As the representatives of Pocket Option point out since 2021, the market of cryptocurrencies has continued to develop, new projects and technologies such as DeFi (decentralized finance) and NFT (non-fungible tokens) appeared. Today cryptocurrencies and technologies related to them are gradually integrated into different spheres of life, and their impact on the global economy still grows. Cryptocurrencies become an integral part of the modern financial world, and their future looks promising despite the existing risks.
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