HomeBlogBlogThe Evolution Of Cryptocurrency: From Bitcoin To XRPayNet

The Evolution Of Cryptocurrency: From Bitcoin To XRPayNet

Although cryptocurrency has been a relatively recent buzzword in the investment world, the concept has actually been around for 40 years. Over the last four decades, a lot has changed in the crypto world, with investors becoming smarter and adapting their strategies, and the technology constantly evolving. 

So where did cryptocurrency begin and what does it look like now?

The beginning of cryptocurrency: Bitcoin

Bitcoin was created by a computer programmer under the pseudonym Satoshi Nakamoto as the first cryptocurrency. It was released in 2009 and just four years later was named the best investment of 2013 by Forbes.

As the first virtual currency, it piqued the interest of investors all around the world who wanted to be part of this exciting new era of finance. 

Instead of buying gold, shares or money, they would instead purchase a computer file that would then be stored in their digital wallet. Another difference with cryptocurrency is that every transaction is recorded in the blockchain. 

This means every financial movement is traceable, preventing people from making copies, spending Bitcoin that is not theirs, or being fraudulent with the new currency. This makes Bitcoin a secure choice of investment, though it is still possible to delete them or lose the digital wallet by mistake. 

Huge demand in Bitcoin

The reason Bitcoin became incredibly valuable was because people began to buy them quickly in exchange for money. The huge demand for Bitcoin and its value in terms of real cash, therefore, made them more desirable, pushing the price up even more. 

Therefore, those who bought Bitcoin when it first launched were likely to get a lot more for their money than they would if they bought it now. 

Multi-billionaire Elon Musk, who is famous for owning X Corp, formerly known as Twitter, and Tesla, caused the value of Bitcoin to soar over the years by praising it. 

Thanks to being worth a staggering $221.4 billion (£175.26 billion), lots of investors look up to Musk as a financial guru, so by throwing his support behind Bitcoin – and even changing his bio to #bitcoin at one point – he has helped elevate the cryptocurrency market. 

The volatile nature of Bitcoin

One of the reasons why Bitcoin took off the way it did, other than investors appreciating that the value was going to escalate at an unprecedented rate, was the fact the currency was not controlled by the government or banks. Therefore, there is no central authority or even administrator. 

While many people like this, for some, this made Bitcoin feel insecure, which is why the popularity – and subsequently, the value – of Bitcoin has fluctuated over the years. 

This volatile nature is what makes it incredibly appealing to lots of people though, as while they can lose lots of money if its value falls, they also have the potential to make huge amounts too. 

For instance, Bitcoin’s value famously dropped by over 70 per cent in the year between November 2021 to December 2022, from $68,789 to $16,000. However, on March 5th 2024, it managed to hit its peak value again and market capitalisation exceeded $2 trillion for the first time in two years. 

The resurgence of Bitcoin

This resurgence of the cryptocurrency has led many people to anticipate its value will continue to soar in the next few  years. 

Fundstrat Global Advisor co-founder Thomas J Lee expects Bitcoin to exceed $500,000 by 2029. 

At the same time, Bitcoin recently underwent halving, which is intended to slow down the pace of coins being created. This took place on April 20th 2024, with the next halving expected to be in 2028.

In previous years, halving has led to greater interest in cryptocurrency as it shocks the supply. Therefore, the value of Bitcoin could be at its peak in 2024. 

However, the effect of halvings has declined over the years, with the surge after the first halving reaching 5,500 per cent, dropping to 1,250 per cent after the second halving, and down to 700 per cent after the third halving. 

The future of Bitcoin

The longer Bitcoin has been around, the more astute investors have become. This is why some experts believe institutional crypto investors could change the landscape of Bitcoin, as long-term investors are becoming the norm, while the amount of Bitcoin held on exchanges is declining. 

Analysts told the Morning Star: “If this trend were to persist, Bitcoin’s supply would become increasingly illiquid, setting the stage for a supply squeeze and consequently a potential sharp rise in price.”

In this case, the value of Bitcoin would skyrocket, the long-term investors would make a huge amount of money, and those who want to buy Bitcoin or get involved in using the currency on exchange markets or as a transactional tool will struggle to do so. 

Other cryptocurrencies in the mix

Since the launch of Bitcoin, other cryptocurrencies have emerged, including Ethereum, Dogecoin, Tether, Binance Coin, and USD Coin. This has allowed the market to expand, with crypto investors either focusing their attention on other assets or building a wide-ranging portfolio to mitigate their risk. 

One such cryptocurrency that has been following in Bitcoin’s footsteps is XRPayNet, which is built on the XRP Ledger. 

Unlike Bitcoin and some of the other currencies, which are predominantly investor assets, XRPayNet is transforming the world of crypto, so the virtual currency works with everyday transactions. 

How can XRPayNet be used in everyday life?

Instead of being untouchable wealth, XRPayNet allows crypto currency to have value in the real world, as it can be used to purchase goods through a card, to take money out of ATMs anywhere in the world, to buy goods online, and to get great deals. 

The fact that users can access different currencies through their card when they are abroad could change the landscape of currency exchange, and make international travel significantly easier, particularly for businessmen and women who are regularly on the move. 

The currency can be transferred between wallets in a matter of seconds, and the XRPayNet credit card allows users to buy now and pay later on goods and services. 

This has made cryptocurrency far more accessible, worthwhile, and therefore, valuable to users, opening up the market so it is not only for investors anymore, but to everyday spenders. 

While Bitcoin is likely to remain popular, particularly with long-term investors, XRPayNet has the potential to change the face of purchasing as we know it.

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