Ebook Usfia gb.pdf
1. Virtual or crypto -currency
The first crypto-currency was Bitcoin, which was launched in 2009
Other virtual currencies later appeared, such as the:
Litecoin, Peercoin, Namecoin
In their early years, these virtual currencies started to gain public and media attention.
From 2011, interest gathered quickly, especially during the vertiginous rise of BitCoin in April 2013.
By virtue of the way they are set up, these virtual currencies escape all regulation, though they are
being watched carefully by monetary authorities across the world.
The most famous, the Bitcoin
The most well-known of the virtual currencies, the
Bitcoin flew up to 16257 times its initial value. It was
launched in 2009 at $0.06 and rose to almost $1000
before crashing (all being relative!) to around $290 in
Let’s try to understand why…
An investment of $1000 on 7 February 2011 was worth $207,000 on 4 December 2013.
There was a very serious correction in April 2013, as technical problems led to panic selling
As the major platform collapsed, further turmoil ensued, with a balance out currently in the $500 area.
Major landmarks in the history of Bitcoin:
29 July 2013 - Thailand becomes the first country to ban the use of Bitcoin in its territory, via a
Central Bank decision
5 December 2013 - China Central Bank banned all Bitcoin transactions in local banks, and this led
to the start of a crash
8 January 2014 - Alibaba Group banned Bitcoin payments
6 February 2014 - Russia declared Bitcoin illegal, on the basis that the only currency allowed in
Russia is the Ruble
26 February 2014, US Senator Joe Manchin asked for a ban on Bitcoin in the US, due to its
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