History

Abstract

Cryptocurrency is the latest step in the evolution of money. This chapter covers the pioneers, breakthroughs and developments that led to the birth and growth of cryptocurrency. Key topics include David Chaum, the godfather of cryptocurrency; Satoshi Nakamoto, the mysterious figure behind the world’s first cryptocurrency, Bitcoin, and inventor of blockchain technology; Vitalik Buterin, a young rising star who created Ethereum and was dubbed by Vice “the blockchain’s movement’s biggest celebrity”; Silk Road, the illegal online marketplace that first created demand for cryptocurrency; and the ups and downs of the volatile cryptocurrency market, including the parabolic gains of 2017 and the great recession of 2018. Understanding this context helps explain how cryptocurrency became so revolutionary, acclaimed and controversial. The chapter concludes discussing cryptocurrency’s hotly debated future. Naysayers such as Warren Buffett predict the market is a bubble that will end poorly, while enthusiasts point to Bitcoin’s previous crashes and multiple comebacks.