The Origins of Crypto Currency

By Siddhanth Tatavarthi
November 2024

In 2009, traditional banking was at an all-time low in terms of confidence, and the global financial system is still in shock from the 2008 catastrophe. Then came Bitcoin, a digital currency that allowed people to trade money directly with one another without being controlled by large institutions. Bitcoin was created by the enigmatic Satoshi Nakamoto, whose identity is still unknown despite several conspiracy theories, and his concept was revolutionary.

Let’s think about Bitcoin as that one rebellious kid in high school—the one who skips pep rallies, won’t play by the school’s rules, and yet somehow still ends up as a local legend. Picture Bitcoin as wearing a leather jacket, perpetually dodging authority, and somehow still getting on, by purely its audacity and charm.

So then, what sets bitcoin apart from other online transactions? Its application of blockchain technology was what made it magical. Imagine the blockchain as a virtual record that is accessible and verifiable by everybody on the planet, but that is not under the control of any one individual. Theoretically, this invention made Bitcoin transactions clear, secure, and impenetrable. It was coded financial freedom.

By 2010, computer enthusiasts, and, surprisingly, those early adopters who viewed Bitcoin as a new form of investing were all taking an interest in it. After a few years, Bitcoin started to garner significant interest. Bitcoin continued to expand, mostly due to the fact that it provided a special opportunity to avoid banks and conventional cash. And, believe it or not, that freedom was valuable to many. Not many people liked conventional banks either way, especially after the 2008 “catastrophe” (It couldn’t have been that bad, could it?)

Then the obstacles appeared. Governments began to take notice as Bitcoin gained traction, and they were not happy. The legitimacy of a currency that functioned independently of any bank was questioned by financial enthusiasts across the world. They were concerned about possible negative uses of the currency, tax evasion, and fraud. Bitcoin soon found itself in a battle to balance its decentralized and free spirit with the growing demands of established financial institutions and governments.

Well, after fifteen years, here we are: Bitcoin is a cultural movement (a bit of a rebel) as well as a financial experiment. Bitcoin's growth has demonstrated that it may be normal to build an entire financial system outside of what already is, even if it involves rewriting the rules.