After reaching $1,000 for the first time, the value of bitcoin crashes the price plummeted almost $300. It takes two years to eclipse $1,000 again.Mt GoX was handling over 70% of all bitCoin Transaction worldwide.
Satoshi Nakamoto Paper
Click on each date for more information.
Scams & Theft Expand
The Ethereum Ether Coin is launchers. The new currency arrivals Bitcoin and gains early popularity. Using Initial Coin Offerings (ICOs) the new system offer investors the chance to trade what are often startup ventures, in the same manner that they can invest and trade cryptocurrencies.
Bitcoin software is made available to the public for the first time. The process through which new Bitcoins are created and blockchain transactions are recorded and verified by miners.
Rival Coins are Valued
As Bitcoin increases in popularity and the idea of decentralized encrypted currencies catch on. The first real rivals emerge which were deeemed AltCoins. Each tries to improve on the original Bitcoin design by offering greater speed, anonymity or some other advantage. Namecoin and Litecoin are released.
A paper called Bitcoin – A Peer to Peer Electronic currency system was posted to a mailing list . It was posted by someone calling themselves Satoshi Nakamoto, whose real identity remains a mystery to this day.
Although Bitcoin was the first established cryptocurrency in 2009, there had been previous attempts at creating cryptocurrencies based on an encrypted ledgers. In 1983, the American cryptographer David Chaum conceived an anonymous cryptographic electronic money called ecash. Later, 1998 two proposed crypto currencies were describe B-Money and Bit Gold, which were formulated but never fully developed.
As it had never been traded, only mined, it was impossible to assign a monetary value to the units of the emerging cryptocurrency. In 2010, someone decided to sell theirs for the first time – swapping 10,000 of them for two pizzas. Now worth more than $100 million. MtGoX is established to exchange cryptocurrencies.
Bitcoin becomes a target for criminals. The world’s largest Bitcoin exchange Mt.Gox goes belly up. The owners loss over 850,000 Bitcoins valued at over $450 million dollars that’s equivent$4.4 billion today. Gemini and Coinbase Exchanges are established to address the Mt Gox debacle.
Definiton of Cryptocurrency
Hardware wallets are USB devices. It stores the private keys. It can be plugged into any computer to perform the transaction. Can be used any where and any time.
Risks include losing the device, backups, viruses, USB loggers, losing passwords.
Click each wallet for more information.
Types of Crypto Wallets
Online wallets are stored in the cloud. It’s a service used to store your Public Account and Private Keys. It can be accessed any where and any time. The cloud service protects your keys, with backups and security to prevent viruses, key loggers, losing passwords.
Risks include you must request the service to perform your transactions. Also must ensure they will not lose your keys. It has happened!
Desktop Wallet is an application you store on your computer. Normally very secure, but the responsibility to secure it and possibility of losing it is up to the owner.
Risks include backups, viruses, key loggers, and losing passwords.
Mobile wallets are stored on smart phones and tables. It’s an application. Can be used any where and any time. Can also scan QR codes for payments.
Risks include losing the device, backups, viruses, key loggers, losing passwords. Can use finger print as keys.
A paper wallet is just a document with your Public Account Name and Private Keys.
Risks: Is secure from hacking but the document can be lost or stolen. Data must be entered manually to perform a transaction.