If you are anything like me you are probably asking yourself what the hell is a bitcoin anyways?
I have done some "mining" around the internet and dug up some pretty interesting facts on the subject. Since this will be a long blog with a lot of eye opening information I will be splitting this blog into separate articles. So buckle up and lets begin....you are welcome LouAnn!
What is a Bitcoin? Bitcoins are a digital currency created in 2009. In which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently from a central bank. There are no physical bitcoins, only a public ledger kept on a cloud, that along with all bitcoin transactions, is verified by massive amount of computing power. Bitcoins are not issued or backed by banks, or governments, nor are bitcoins valuable as individual commodity. Despite its not being legal tender, bitcoin charts high on popularity, and triggered the launch of other virtual currencies collectively known as Altcoins. The idea of this decentralized and virtually currency is written out in a White Paper written by Satoshi Nakamoto, who's identity is still unknown....Still following??
Hers's a quick timeline to illustrate some of the information I have found.
- January 2008 - America has officially entered into a recession. Due to subprime mortgages, which lead Americans to default on their NINJA loans ("no income, no job, no asset) given by banks, and banks not having enough liquidity to back up their greedy, unethical behaviorisms like selling collateralized debt obligations and credit default swaps . Bernie Madoff's Ponzi scheme claims 17 billion dollars, with only 23 clients, and only 1-5 employees making "investment advisory functions"
- August 2008 - The domain name Bitcoin.org is bought
- September 2008 - Fannie Mae and Freddy Mac are taken over by the US government. Bank of America buys Merrill Lynch for 50 billion dollars. Lehman Brothers files bankruptcy. AIG accepts government bailout and gives the US government 79.9% stake in the company. Goldman Sachs and Morgan Stanley become bank holding companies instead of the their normal positions as investment banks.The DOW Jones drops 778 points on September 29th, the most ever in one day.
- October 2008 - Revised TARP (troubled asset relief program) passes in Congress. Bitcoin - White Paper is released illustrating the idea of peer to peer transactions, and a complete virtual currency.
- November 2008 - President Obama Is elected as the first African American president of the United States of America
- December 2008 - Bernie Madoff - After the fall of banks and the stock market Madoff cannot keep up with the redemptions so he comes clean. He is arrested December 11th, only after stealing over 60 billion dollars ruining many Americans lives.
- January 2009 - AIG, Citigroup, Fannie Mae, Freddie Mac, Chrysler, and GM were bailed out by our federal government's TARP loans, paid by the American taxpayers all because they were deemed to big to fail. Most people believe the big bank bailout only costed us only 700 billion dollars, but in actuality we are still paying for it today. In 2011 Congress forced a one time audit of the Federal Reserve revealing 7.7 trillion dollars of secret emergency money was lended to banks without requirements, letting the banks use it for any purpose. The public is now aware for the first time that the great bailout of 2008 actually costed us trillions not billions and is ongoing today. President Obama has his inauguration speech, Bernie Madoff is jailed, and Bitcoin begins its first block called "genius." This first bitcoin transaction was between Satoshi Nakamoto and Hal Finney. Within the bitcoin network's transaction database there is a note from Satoshi, that reads "The Times 3/January/2009 Chancellor on brink of second bailout for banks." Perhaps a jab at our federal government for dumping billions of dollars into a collapsing economy for the sake to save our corrupt bank systems.
- August 2010 - 184 billion bitcoins get hacked. 1BTC/ $1
- July 2013 - Texas man accused of running a virtual Ponzi scheme that guaranteed 7% weekly returns is jailed.
- October 2013 - Silk Road, a black market powered by bitcoins is shut down. Silk Road was an underground marketplace for drugs and money laundering with one rule, anonymity.
- August 2013 - Trendon Shavers is coined the "Bernie Madoff" of bitcoin
- November 2013 - Soon after Silk Road, our US Senate holds its first hearing on digital currency. Regulators see value but investors hasten to agree even after recent drug scandals involving bitcoins. 1BTC/$700
- December 2013 - China bans bitcoins. People's bank of China says it has no real meaning and should not be giving the same status as fiat cash.
- June 2014 - Bitcoin no longer the "Currency for Criminals" largely due to the fact the US government sells off the 29,000 bitcoins confiscated from the Silk Road seizure.
- December 2014 - Microsoft accepts bitcoins.
- 2015-2016- Slow and steady rise of bitcoin.
- 2017 - Bitcoins went from 1BTC/$770 in December 2016 to 1BTC/$12,200 in December 2017 and rising. Today December 8th, bitcoin closed at 1BTC/$16,664.46!
Coincidence? Correlation? or down right Criminal??
Stop back soon to see the my other blogs regarding this conundrum. I will be discussing how Bitcoins work, where to buy Bitcoins, where to spend Bitcoins, and the many risks involved: fraud, security, value, insurances, and market risks. After the Equifax hack that exposed half of all Americans do you really feel safe not only having all your personal information on the internet, but now all of your money too. Here is something to think about until part 2...
"If a company or commodity has no assets, no returns, and no backing, what's it worth?"