Introduction
Cryptocurrencies are virtual currencies. Virtual currencies are different from digital money. Digital money refers to the user’s funds in the bank account which can be accessed through online mediums. Virtual currencies, on the other hand, refer to currencies that are mined over the internet. The most notable example of a cryptocurrency is the Bitcoin. Bitcoin is a virtual currency that has value in the virtual world, but it is not physically present. It exists only in the digital world. Savings accounts and banking transactions are subject to government regulations and monitoring. However, this is not the case with virtual currencies.
Cryptocurrencies are well recognized to have the potential to disrupt the economy. However, from the viewpoint of E-commerce business, cryptocurrencies seem to be the next logical step for evolution. Cryptocurrencies are operated on a platform called as Blockchain. The blockchain is a highly efficient mode for online data storage. Using blockchain and cryptocurrencies in the e-Commerce sector is highly advantageous. This technology dramatically reduces data storage and data handling costs. The benefits of low-cost transactions can be shared by the business as well as the consumer. This is extremely enticing for online merchants and shoppers alike.
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2009
First Bitcoins
The first 50 bitcoins are mined by Satoshi Nakamoto, the pseudonymous inventor of Bitcoin.
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2012
$100 Bitcoin Milestone
After nearly two years of inertia, bitcoin hits $100 for the first time on April Fools’ Day and then booms — doubling to more than $200 apiece in the span of a week.
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2013
$1,000 Bitcoin Milestone
Bitcoin soars past the $1,000 mark, near doubling in value in the span of a week. The frenzied buying appears to be propelled by Chinese investors, who, it’s assumed, want to move their money into untraceable accounts. Bitcoin peaks at $1,216.70 by the end of the month. The price won’t break $1,000 again for three years.
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2017
$10,000 Bitcoin Milestone
Bitcoin blasts past $10,000 mark. Hours later the price tops $11,000 and keeps powering higher. The meteoric rise gets a shrug from investors, and stays within range of its peak valuation past the Thanksgiving holiday weekend. The main price-drivers are new main-street investors.