History of Digital Currencies & Bitcoin ( Part 1 )

     Money has changed significantly in the last 60 years credit cards first came in the late 1950s but they would not see widespread use for decades banks bank checks were still the most popular form of payment besides cash you can use cheques to bond thing increasing use of cheques in the 70s led to the development of an electronic payment network to replace the ever-growing burden of maintaining paper records of payments this network would be called the automated Clearing House or ACH this is what allows your paycheck to be directly deposited into your bank account the 20th century saw a rapid growth in technology across the Western world .

The History and growth of Bitcoin ..

This growth was so drastically fast there are multiple labels for this era the communication revolution the information revolution and the computer revolution but we will call this the digital revolution our representation of money used to be cash paper bills and metal coins the digital revolution has made money ever increasingly become more virtual and less physical in fact today only 8% of the world's currency exists in a physical cash form paper money used to be just a representation of the historical money that is gold because gold has high intrinsic value this was called the gold standard and was ended for the United States dollar in 1971 with the invention of the internet came some attempts to return to gold backed currency by representing gold digitally two of such attempts were called eagled and gold money though money had become more digital .

In the late 1900s there still was not a strictly digital only currency until the digit cash company was started by David CIAM in 1990 the new currency was rightly named ecash ,, however did not gain much use onlyone bank in the United States implemented the currency and just a handful worldwide and mr. Tom's company went bankrupt by 1998 by this time the internet had spread to over a quarter of US homes multiple digital currencies came in weds government regulation caused currencies like eagled gold money and Liberty Reserve to cease progress no digital currency created yet was safe from censorship during the course of this inquiry we've examined the issues and potential risks and threats .

The virtual currencies posed then came 2009 bitcoin is the first virtual currency to not have a central point of failure most importantly it is resistant to government force bitcoins protect your privacy its entire system is distributed and thus impossible to pinpoint and shut down if the United States wants to block money from going to WikiLeaks where they go while they go to PayPal's visa and mastercards of the world and put pressure on them there with bitcoin there's none of that there's nobody in the middle to to go after it is able to achieve this feat through cryptography which is basically a fancy word for secure communication .

The software of course takes place via the internet as it was designed a distributed network of voluntary users provides the service to maintain the Bitcoin software system this currency allows you to send a payment to anyone in the world online without using any bank company country government or otherwise trusted third party sending Bitcoin basically works like an email except that a bitcoins unit of value cannot be duplicated only a specified number of Bitcoin units will ever be in existence much unlike the u.s. dollar money supply which is determined by the Federal Reserve's central bank America's money supply has basically doubled in just the past decade causing prices of goods and services to do the same after it wasreleased the first bitcoins had near zero value because at this time almost all the users were simply cryptography enthusiasts computer nerds playing around with some new and cool piece of software .