over 3 years ago

A brief history of cryptocurrencies goes back towards the early 1980s, by which cryptographer David Chaum produced an anonymous, cryptographic and electronic type of money. It was known as ecash, and it was later implemented with the Digicash framework, which permitted digital currency to become untraceable through the issuing bank, the federal government, or other 3rd party.

Although further research preceded cryptocurrencies following these developments, they didn't achieve an item of prominence before the early 2000s.

Particularly, in 2008, the planet observed a serious economic crisis: banks faltered, companies collapsed, and thousands and thousands of individuals were in severe financial predicaments not able to repay houses, loans, along with other how to sell bitcoin.

It had been during this time period that cryptocurrencies found the forefront.

Throughout the financial crash, banks and banking institutions all over the world needed to be “bailed out” by their governments, and for that reason not directly by taxpayers.

Consequently, it began to get increasingly more obvious the modern economic climate wasn't only untrustworthy and fragile, but possibly even inherently problematic.

Thus, among some other reasons that trace to the study and curiosity about cryptographic technology, the need to have an alternative currency stemmed from the deep dissatisfaction for traditional banks and banking institutions.

Not just that, but cryptocurrencies also stemmed from the deep dissatisfaction with traditional Fiat currencies: probably the most predominant type of currency today.

Fiat currencies are currencies which were produced with a national government, whose supply is totally controlled with a national government, and whose existence is predicated by citizens and institutions getting belief for the reason that government.

On October 31st 2008, a white-colored paper was printed that introduced Bitcoin towards the public. The main premise from the paper highlights the way the current model for electronic payments requires rely upon a 3rd party.

The paper then procedes to reveal that through cryptographic technology, that trust could be substituted for a in past statistics seem solution.

Thus, the paper sketched the next payment system that does not require centrality of traditional banking and finance, nor one which requires collective rely upon governments and traditional institutions.