Bitcoin was born in a context where people had a significant lack of trust in banks and institutions. In 2008, the world experienced one of the worst economic crises in modern history due to the collapse of the US housing market and the bankruptcy of the world’s major banks. During this crisis, millions of people lost their homes, their jobs, and their savings. Then, on October 31, 2008, a person under the pseudonym Satoshi Nakamoto published a document: the Bitcoin white paper, titled “Bitcoin: A peer-to-peer cash system.” This document revealed a new, completely decentralized financial system that would allow the world to transfer money from one person to another without going through a bank, a state, or a company.
A few months later, in early January 2009, the creator of Bitcoin officially launched the Bitcoin network by creating the first block of the blockchain. From that day on, a new monetary system was created. The goal of Bitcoin is clear: it provides a digital currency that is free, transparent, and independent of any central power.
The Technology Behind Bitcoin
Bitcoin is based on a revolutionary technology: the blockchain. The blockchain is a distributed digital ledger that records every transaction on its network. This ledger is public and accessible to all. It is therefore unforgeable.
For each transaction, they are grouped with others in a block. This block is then validated by thousands of computers around the world, called miners. These miners use their computing power to solve a mathematical problem in a process called Proof of Work.
The first miner to find the solution validates the block, adds it to the chain, and receives a reward in Bitcoin. This is called mining.
Thanks to this system, all transactions are secure and authentic; no one can modify them. It is thanks to this decentralized and encrypted technology that Bitcoin can operate without any central authority.
What is Bitcoin used for?
Bitcoin was originally designed as a peer-to-peer electronic currency, meaning it is a means of payment between individuals without an intermediary. It therefore allows anyone to send money to any country or receive money directly, quickly and at a low cost.
Bitcoin quickly gained a lot of public attention and has taken on a much broader dimension. With a limited supply of 21 million of units. It is a rare asset that some compare to them. It is even sometimes referred to as digital gold. In some countries, Bitcoin is seen as a hedge against inflation and currency devaluation.
Today, Bitcoin is used for several reasons: as a means of payment between individuals or businesses as a store of value to protect against inflation and economic crises as an investment
Bitcoin symbolizes a desire to regain control over money outside of financial institutions.
The Evolution of Bitcoin.
Initially, the evolution of Bitcoin was modest. Fun fact: in 2010, a man bought two pizzas for 10,000 Bitcoins. At the time, this was equivalent to approximately $30. Today, Bitcoin is worth over a hundred million euros.
Little by little, the Bitcoin community grew. Developers, investors, and entrepreneurs became interested in the project. In 2013, the price of Bitcoin, exceeded $1,000 for the first time, arousing curiosity.
Despite crises and volatility, Bitcoin is gaining legitimacy. Large companies like Tesla, Square, and Microstrategy are investing heavily in Bitcoin. In 2021, Bitcoin was authorized as legal tender in El Salvador. In 2024, the United States authorized the first Bitcoin ETFs in the United States, making investment easier for large funds.
Today, Bitcoin is considered the leading active cryptocurrency, with a market capitalization sometimes exceeding $1 trillion. Today, states are even talking about creating strategic Bitcoin reserves.
Current Challenges and Future Prospects.
Even though Bitcoin is highly valued by some, it is not without its critics. It is too often criticized for its high energy consumption due to mining, transaction fees that are sometimes too high, and volatility that makes it impractical for everyday use.
But the community is looking for solutions. For example, by developing a Lightning Network, enabling faster and cheaper Bitcoin transactions. Initiatives are being launched to make housekeeping more environmentally friendly and less expensive by using renewable energy.