Over 14 years ago in 2008, an anonymous computer programmer(s) writing under the presumed alias of “Satoshi Nakamoto” developed a groundbreaking new form of digitized currency known as “Bitcoin.” This new currency uses electronic cryptography to generate random numbers, which represent the currency in digital form. As outlined in Nakamato’s ‘White Paper‘ (Bitcoin guide), this new currency was explicitly created as a way to bypass the traditional banking system by allowing “payments to be sent directly from one party to another without going through a financial institution.”
To verify and protect Bitcoin transactions, Nakamoto also created the “blockchain,” a type of digital ledger which serves to securely record transactions using electronic cryptography. The advent of the blockchain also facilitated the invention of the “Non Fungible Token” (NFT), a type of digitized financial security which can be openly traded or sold over the web.
The rise and spread of blockchain technology ushered in a new modern-day gold rush, often referred to as the “Crypto Craze.” While independent artists, investors and billion-dollar currency trading firms have made billions off of this new gold rush, many others have sustained incalculable losses due to the unpredictable and highly volatile nature of the markets. Sometimes these markets collapse—Mt. Gox famously imploded in February 2014—taking many notional fortunes with it.
Cryptocurrency supporters often argue that it is a much-needed new technology with the potential to revolutionize the way money is controlled and distributed, while a growing number of critics are voicing their skepticism and outright opposition to what they see as nothing more than an elaborate, legal scam.
For more on blockchain technology, see our 2018 report: “Blockchain: Revolution or Business as Usual?”
The Origin and Rise of Bitcoin
As the prevalence of blockchain technology grows, so too do the voices of its…
