What makes up web3? Crypto Bitcoin: The First Cryptocurrency

Bitcoin: The First Cryptocurrency

The attention around cryptocurrencies really came from the first one ever created (and the most popular one up to date for that matter).

Even if you don’t own some or know the mathematics behind how it works, we’re pretty sure you’ve heard of the name before: Bitcoin.

In fact, you don’t even need to know the ins and outs of the code or how it operates. But it is worth exploring the story behind the creation of Bitcoin and the context behind why so many users and investors worldwide are intrigued by what it has to offer.

If you tried searching “Satoshi Nakamoto,” you would find many pages that would tell you that Satoshi is the creator of Bitcoin. But you would also find that Satoshi Nakamoto is not an actual person, at least not one that can be directly identified.

You see, Satoshi Nakamoto is a pseudonym used by the anonymous creator(s) of Bitcoin. To this day, no one truly knows whether Satoshi is a person, group, or organization.

We could go into some theories around who Satoshi is, but it’ll probably be more useful to just read through two key points that highlight Satoshi’s involvement in shaping Bitcoin:

  • Released a whitepaper that introduced the concept of Bitcoin to the world in 2008.
  • Was active in the community, along with other developers, up until 2010, before disappearing from the scene altogether.

This basically sums up what you need to know.

Satoshi’s identity continues to be a mystery in the world of cryptocurrency. Whether we will ever be able to identify Satoshi or not, one thing is for sure: the creator(s) of Bitcoin will always be an important figure whenever anything is associated with cryptocurrencies and the blockchain.

A closer look at Bitcoin 🔎

Out of all the cryptocurrencies available, why is Bitcoin the most popular?

Let’s look at three reasons.

The first is that Bitcoin enjoys the comfort of the first mover advantage, giving it a distinct advantage in the cryptocurrency market.

Since it really is the first blockchain network that allowed consumers to transact with one another on a large scale, Bitcoin had more time to establish trust among users.

So even though some of its rivals outdo its ability to host complex decentralized applications, or are able to handle a lot more transactions compared to Bitcoin, it still holds the most adopted user base to date.

The second is brand recognition, which is closely related to it having the first-mover advantage.

If you were to ask someone whether they have heard of the blockchain before, they might say no. But once you follow up on that answer and associate it with the word Bitcoin, they’ll probably show some sign that they know what you’re (kind of) talking about.

Most people have heard about Bitcoin, and it doesn’t matter whether someone understands what blockchain technology is, or even knows that it is a technology that powers it.

The point is that Bitcoin is what gave blockchain and cryptocurrencies more eyes and attention. If someone were to consider investing in a cryptocurrency, Bitcoin would probably be the first to come to mind.

Lastly, people are interested in Bitcoin because they see it as a store of value.

You see, the number of Bitcoins that will ever exist is capped at 21 million. So even though other known blockchains like Ethereum (the most popular one for NFTs) might be able to host decentralized applications or handle more transactions, the bitcoin cryptocurrency is often seen as a precious metal because of its scarcity.

Many people and investors around the world thus see it as an effective counter to the falling value of fiat currency, especially amid high domestic or international inflation rates.

Discover our sources and find out where information is coming from.

Thank you for the feedback! 💜