History of crypto
The financial crisis 2007 / 2008
The financial crisis of 2008, also known as the global financial crisis, was a major economic downturn that affected markets around the world. It was triggered by the collapse of the housing market in the United States, which led to the failure of several large financial institutions and the near-collapse of the global financial system.
The crisis began in 2007, when the housing market in the United States began to decline as a result of the widespread availability of risky mortgage products, such as subprime mortgages. As housing prices fell, many homeowners found themselves underwater on their mortgages, meaning that they owed more on their homes than they were worth. This led to a wave of foreclosures, which further depressed housing prices and put pressure on financial institutions that held large amounts of mortgage-backed securities.
As the crisis deepened, several large financial institutions, including Lehman Brothers and Bear Stearns, failed, and the global financial system came close to collapsing. In response, governments and central banks around the world intervened, implementing measures such as bailouts, financial guarantees, and monetary policy easing to stabilize financial markets and prevent a global economic depression.
The crisis had significant economic and social impacts, including high levels of unemployment, declining wealth, and increased poverty. It also led to regulatory reforms, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act in the United States, which were designed to prevent future financial crises.
The beginning of crypto currencies
Cryptocurrency is a digital or virtual currency that uses cryptography for security and is decentralized, meaning it is not controlled by a central authority such as a bank or government. Cryptocurrencies are based on blockchain technology, which is a decentralized ledger that records transactions across a network of computers.
The history of cryptocurrency dates back to the late 1980s, when computer scientist David Chaum first proposed the concept of "e-cash," which would allow for secure and anonymous online transactions. However, it was not until the release of the cryptocurrency Bitcoin in 2009 that the concept of cryptocurrency began to gain widespread recognition and adoption.
Bitcoin was created by an anonymous individual or group of individuals known as Satoshi Nakamoto, who published a white paper outlining the design and technical details of the cryptocurrency. Unlike traditional currencies, which are issued and controlled by central banks, Bitcoin is decentralized and relies on a network of computers to validate and record transactions on a public ledger called the blockchain.
Since the release of Bitcoin, hundreds of other cryptocurrencies have been created, each with its own unique features and applications. Some of the most well-known cryptocurrencies include Ethereum, Litecoin, and Monero.
Cryptocurrency has gained widespread recognition and adoption in recent years, with many people using it as an alternative to traditional currencies for online transactions, as well as a potential investment opportunity. However, it has also faced significant controversy and regulatory challenges, as some governments and financial institutions have raised concerns about its use for illegal activities and lack of oversight.
Overall, the history of cryptocurrency is a relatively short but rapidly evolving one, and it is likely that it will continue to play a significant role in the future of money and financial transactions.
Here is a rough timeline of key events in the history of cryptocurrency since 2008:
2008: The white paper for Bitcoin is published by an individual or group using the pseudonym Satoshi Nakamoto.
2009: Bitcoin is released and the first block (called the "genesis block") is mined.
2010: The first Bitcoin transaction takes place between two individuals, and the first exchange rate for Bitcoin is established.
2011: The first Bitcoin exchange, Mt. Gox, is launched, and the first Bitcoin ATM is installed.
2013: The value of Bitcoin reaches $1,000 for the first time.
2014: The Ethereum network is launched, and the first Ethereum token, Ether, is released.
2016: The Ethereum network is used to launch the first Initial Coin Offering (ICO), which allows companies to raise funds by selling tokens.
2017: The value of Bitcoin reaches an all-time high of nearly $20,000, and the market for ICOs grows significantly.
2018: The market for ICOs cools off, and the value of Bitcoin and other cryptocurrencies begins to decline.
2019: The decentralized finance (DeFi) movement begins to gain traction, and the first DeFi platform, MakerDAO, is launched.
2020: The DeFi market grows significantly, and the first non-fungible tokens (NFTs) are created and sold.
2021: The value of Bitcoin and other cryptocurrencies begins to rise again, and the NFT market explodes in popularity.
This timeline is a rough overview of key events in the history of cryptocurrency since its inception in 2008. The field of cryptocurrency and blockchain technology has evolved significantly over the past 13 years, and it is likely that it will continue to evolve and change in the coming years.
Who is Satoshi Nakamoto ?
Satoshi Nakamoto is the pseudonym used by the unknown person or group of people who created the cryptocurrency Bitcoin and wrote its original white paper in 2008. The true identity of Satoshi Nakamoto has never been revealed, and the individual or group has remained anonymous.
Satoshi Nakamoto is believed to be the creator of the first ever blockchain database, which forms the foundation of the Bitcoin network. The white paper, titled "Bitcoin: A Peer-to-Peer Electronic Cash System," outlines the design and technical details of the cryptocurrency, including how transactions are validated and recorded on the blockchain.
In the years following the release of the white paper, Satoshi Nakamoto remained active in the Bitcoin community, making various contributions and helping to develop the cryptocurrency. However, in 2011, Satoshi Nakamoto stopped communicating publicly and has not been heard from since.
Despite the mystery surrounding Satoshi Nakamoto's identity, the impact of Bitcoin and the blockchain technology it introduced has been significant and has revolutionized the way we think about money and financial transactions. The legacy of Satoshi Nakamoto will likely continue to be felt for years to come.
The major crypto currency scams
Cryptocurrency scams, also known as "exit scams," are fraudulent schemes that involve the creation of a fake cryptocurrency or the promise of high returns in exchange for investment, with the intention of stealing investors' money and disappearing. These scams can take many forms and have resulted in significant financial losses for investors.
Here is a rough timeline of some major crypto scams that have occurred:
2014: The Mt. Gox exchange, which was once the largest Bitcoin exchange in the world, collapses after it is revealed that 850,000 Bitcoins (worth billions of dollars) have been stolen.
2017: The Bitconnect Ponzi scheme collapses, resulting in significant losses for investors.
2018: The OneCoin Ponzi scheme is exposed, leading to significant losses for investors.
2019: The PlusToken Ponzi scheme is exposed, resulting in significant losses for investors.
2020: The FCoin exchange is revealed to be a rug pull, leading to significant losses for investors.
2021: The YFFI Finance rug pull results in significant losses for investors.
This timeline is a rough overview of only some of the major crypto scams that have occurred. It is important for investors to be aware of the risks associated with investing in cryptocurrency and to carefully research any investment opportunity before committing any funds.
Here is a list of some common types of crypto scams:
Ponzi schemes: A Ponzi scheme is a fraudulent investment scheme that pays returns to earlier investors using the investments of more recent investors. Ponzi schemes rely on the continuous recruitment of new investors to generate returns, and they eventually collapse when the number of new investors dries up and the scheme is unable to meet its obligations.
Initial coin offerings (ICOs): An ICO is a crowdfunding campaign in which a company offers tokens in exchange for investment. Some ICOs have been revealed to be scams, with the company behind the ICO disappearing with the funds raised.
Fake exchanges: A fake exchange is a platform that purports to be a legitimate exchange for buying and selling cryptocurrency, but is actually a scam designed to steal investors' funds.
Phishing scams: A phishing scam is a fraudulent attempt to obtain sensitive information, such as login credentials or financial information, by disguising oneself as a trustworthy entity in an electronic communication.
Pump and dump schemes: A pump and dump scheme is a type of scam in which an individual or group artificially inflates the price of a cryptocurrency and then sells their own holdings, causing the price to crash and resulting in significant losses for investors.
It is important for investors to be aware of these and other types of crypto scams and to carefully research any investment opportunity before committing any funds