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In today's era, the use of electronic money is no stranger to our ears. Almost everything we do is digital. This of course includes exchange rate changes, one of which is crypto. So what's the history?
History of Cryptocurrencies
We can trace the history of cryptocurrencies from 1983. A cryptographer named David Chaum from the United States created cryptographic electronic money which he called e-cash. In 1995, Chaum implemented it through Digicash, an early form of cryptographic electronic payment.
In the late 1990s, scientists Wei Dai, Hal Finney, and Nick Szabo created cryptocurrency systems, respectively, but neither of their creations became widely successful. Even so, their work and that of David Chaum were the cornerstones of this currency system.
The development of new crypto currency became clear in 2008. Japanese scientist named Satoshi Nakamoto published a book called Bitcoin: A Peer to Peer Electronic Cash System. The launch of this book through the cryptography discussion mailing list. Just a year later, Satoshi released the first decentralized cryptocurrency or we know it today as Bitcoin.
Satoshi himself is trying to create a blockchain system so that later it aims to protect every transaction that is made. Blockchain is a collection of blocks that contain transaction data to form a chain. This system is a guarantor of the security of crypto exchange transactions which is enough to break down the conventional financial industry.
CRYPTO CURRENCY DEVELOPMENT
The development of this exchange rate originated from the development of digital currencies, such as e-cash, game tokens, and so on. Then crypto money began to grow en masse in the United States, especially during the pandemic. In this era, the public distrust arose in fiat money, especially in United States dollars issued by the US government without having underlying assets. Then as time goes by, fiat money is often criticized so that investors are more interested in crypto.
digital currency made by Facebook-, received official recognition from the American Congress, although there is still debate about how far digital currency can play a role in Uncle Sam's financial system. In early 2020, congress proposed deliberating cryptocurrency law after Covid 19 devastated the world economy. The road is getting open.
It turns out that China has been secretly developing a digital currency system - digital yuan - since 2014 before finally officially entering the trial phase at the end of 2016. A year later, the Chinese communist government formed a special research agency to formulate a digital currency system. In 2019, China introduced a law called the National Cryptography Law. There's no denying that Beijing has carefully prepared for the big digital currency stage.
Not wanting to be outdone by America and China, Russia has finally made a breakthrough too. In 2017, Vladimir Putin announced the development project of Crypto Ruble, a government-controlled version of digital currency via a blockchain system. According to forecasts, 2021 will be the year the first official law of the Russian government, governing the digital currency system, is enacted.
In fact, even a country like Iran is currently developing a digital currency regulatory system and working with Russia and Armenia. 2018, Crypto Real pilot program did well. In 2019, the Central Bank of Iran officially unveiled the initial draft of a digital currency law, an undertaking which many saw as serious proof of the desert nation's government's intent to enter the cryptocurrency era.
The history of crypto currency begins with the change from conventional forms of money to electronic ones. However, it doesn't stop there, this change is no longer just about the form, but also changes to the system. From what was originally still central and there were third parties, it became decentralized. Until finally cryptocurrency was created. Unfortunately, to jump into this world we need to weigh the drawbacks and risks. It will be very difficult if we are in the novice investor category, be wise in determining your steps going forward.
