In 2010, Wikileaks founder Julian Assange declared Bitcoin to be “the most interesting projection on the Internet,” and since then, the cryptocurrency has exploded in value, rising more than 7,000%. Bitcoin’s meteoric rise is being hailed by some as a sign of the future, a decentralised digital currency which is all but guaranteed to shape the financial landscape for years to come.
1. Bitcoin Surges After WikiLeaks Founder Julian Assange’s Endorsement
Bitcoin has surged after WikiLeaks founder Julian Assange gave his endorsement of the cryptocurrency. Assange tweeted that he had been “using Bitcoin for five years” and that he was “happy to endorse” the digital currency. The tweet sent Bitcoin soaring from around $7,800 per coin to just over $9,000.
What Is Bitcoin?
Bitcoin is a digital currency created in 2009. It is the world’s first decentralized, peer-to-peer digital currency and uses a cryptographic system to verify and secure transactions. Bitcoins can be bought and sold, and exchanged for goods and services.
What Impact Did Assange’s Endorsement Have?
Assange’s endorsement of Bitcoin has had a major impact on the cryptocurrency market. The price of Bitcoin jumped more than 8% in just a few short hours, and the total market capitalization rose to more than $263 billion. Other cryptocurrencies, such as Ethereum and Monero, also experienced a surge in prices.
- Bitcoin surged after Julian Assange’s endorsement
- Bitcoin is a decentralized, peer-to-peer digital currency
- Assange’s endorsement had a major impact on the cryptocurrency market
2. What Is Bitcoin?
Bitcoin is a digital currency created by Satoshi Nakamoto in 2008 and released as open-source software in early 2009. It operates as a decentralized virtual currency without any central authority, such as a central bank or government. Bitcoin can be used to purchase goods online anonymously and securely without having to provide any personal information.
Bitcoin is not managed or issued by any central body, such as a government or financial institution. Instead, it is created through a system of data encryption known as “mining.” This is accomplished by performing complex calculations which are then solved by the computers of miners. When a miner successfully solves a calculation, they receive both a transaction fee as well as newly minted Bitcoin. Additionally, with every transaction, a small amount of Bitcoin is created and awarded to the miner.
Bitcoin transactions are stored in a public ledger known as the “blockchain”. Every transaction stored on the blockchain is encrypted and verified to ensure its legitimacy. This is done by both miners and a network of computers known as “nodes”. The nodes help verify transactions and record them on the blockchain. As data is encrypted and added to the blockchain, it cannot be altered or changed, ensuring that all transactions remain secure.
- Decentralized: Bitcoin is not controlled by any institution, government or company.
- Secure transactions: Bitcoin is secured using public-key cryptography and complex mathematical algorithms.
- Public ledger: The Bitcoin blockchain is a ledger of all Bitcoin transactions that is distributed and publicly visible.
3. History of Bitcoin since Assange’s Statement
In late 2017, Wikileaks founder Julian Assange stated that bitcoin was the only way for those without a bank to protect themselves from political oppression. Since then, bitcoin has seen both successes and setbacks.
Price Volatility
- Despite a notable initial appreciation in 2017, marked by a rise in the value of bitcoin to $20,000, prices have since been on a roller coaster – falling to as low as $3000 by the end of 2018.
- The prices have since managed to steady and have stayed above $8000 for the most part of 2019.
- As predicted by many, volatility returned to the market toward the end of 2019 and continues to be pronounced.
Growing Merchant Adoption
- The biggest growth for the cryptocurrency has been in merchant adoption. In 2017, companies like Microsoft, Expedia, and Dell began accepting the cryptocurrency, signaling its broader acceptance for payments.
- Currently, many more organizations have adopted bitcoin as payment including AT&T, Burger King, Whole Foods, and Microsoft.
- The move has made it easier for people to use the cryptocurrency for everyday purchases. Bitcoin is even accepted on Amazon through third-party cryptocurrency payment providers.
Future Outlook
- It remains uncertain what the future holds for the cryptocurrency as the underlying technology continues to evolve.
- The price of bitcoin, unsurprisingly, will depend on wider sentiments regarding its potential applications and usability.
- To date, the biggest challenge remains the difficulty faced by users in understanding blockchain technology and its use cases.
4. Potential of Bitcoin Going Forward
Bitcoin still has much potential to unlock in the future. Despite its strong performance so far, the rise of Bitcoin is only just beginning. Here are some reasons why the future of Bitcoin is promising:
- Security: Bitcoin is secured through blockchain technology. This system ensures the safety and integrity of the Bitcoin network. Transactions are secure and immutable, making hacking or stealing impossible.
- Adaptability: The blockchain technology behind Bitcoin can be used in many other applications, such as streaming services, smart contracts, and even digital voting.
- Scalability: Bitcoin can process more transactions per second than traditional payment systems like Visa. This makes Bitcoin a much more versatile payment solution.
In addition, Bitcoin’s decentralized nature means that it is not controlled by any one party. This gives it unparalleled freedom, allowing users to transfer funds and conduct transactions without relying on third-party intermediaries.
Bitcoin has come a long way since its inception, and it’s clear that its potential remains untapped. With new technology emerging to support its growth, the future looks bright for Bitcoin.
In the nine years since Assange’s proclamation, Bitcoin has only continued to grow in popularity. While the debate as to whether its values reflect true investment or just a speculative bubble continues, there is no doubt of its disruptive influence on the world of finance and beyond.