Bitcoin, the world's most prominent cryptocurrency, has witnessed a remarkable evolution. Its price surges, legal battles, and various events have shaped its narrative. Let's delve into the details.

Unraveling the Mysterious Tale of Bitcoin

Origins and Mysterious Creator

The identity of Bitcoin's creator remains a mystery. In 2008, an anonymous person named Satoshi Nakamoto first proposed the idea on the internet. This person explained how a peer-to-peer digital cash system could enable people to send virtual coins over the internet as easily as sending an email. Later, a complex computer system was created using a network of volunteers with special software and powerful computers to process transactions and create new coins. Over the years, many have been suspected of being Satoshi Nakamoto, but no one has been confirmed. In 2014, there was a false alarm when people pursued a Japanese-American man Dorian Nakamoto. In 2016, an Australian computer scientist Craig Wright claimed to be Satoshi, but after years of legal battles, the court ruled otherwise. This year, a Canadian Bitcoin expert Peter Todd denied being Satoshi, and a British man, Stephen Mollah, also made a claim but was not believed.

Price Surges and Record Highs

The price of Bitcoin has seen significant fluctuations. It did not pass $100,000 for the first time until recently, setting a new record high. Since Donald Trump won the US election and expressed pro-crypto policies, the price has been rising steadily. Just hours after Trump nominated former Securities and Exchange Commission (SEC) commissioner Paul Atkins as the head of the Wall Street regulator, Bitcoin reached this milestone. This valuation represents a 40% increase from the day of the US Presidential election one month ago and is more than double the price at the start of this year. The $100k milestone caused celebrations among crypto fans worldwide.

Bitcoin in Transactions and Beyond

The first-ever transaction with Bitcoin was the purchase of pizza. In 2010, Lazlo Hanyecz offered $41 worth of Bitcoin for two pizzas. This event showcased the power of Bitcoin as internet money. However, criminals also took notice, launching the first darknet marketplace where people used Bitcoin to buy and sell drugs and other illegal items. If Lazlo had held onto the coins, they would now be worth hundreds of millions of dollars.

Legal Tender and Controversies

In September 2021, El Salvador became the first country to make Bitcoin one of its legal tender. The law mandated that small businesses accept Bitcoin alongside the US dollar. This move attracted many Bitcoin fans and reporters, boosting the country's tourism for a while. Although the President hoped it would increase investment and cut costs for citizens, it did not work out as planned. The President has spent at least $120 million buying more than 6,000 bitcoins, hoping to make a profit for the country. One website tracking the country's Bitcoin holdings estimates that the coins have increased in value by 98%.

Kazakhstan's Crypto Boom and Bust

In 2021, Kazakhstan became a hotspot for Bitcoin mining. Warehouses full of the latest computers ran day and night to process crypto transactions and earn new bitcoins. The country's abundant coal reserves provided cheap electricity for these businesses. However, too many miners arrived, putting a strain on the electricity grid and risking blackouts. Within a year, the Kazakhstan Bitcoin mining industry went from boom to bust as the government imposed restrictions and increased taxes to slow growth. The Bitcoin network's use of electricity has raised concerns about its environmental impact.

Bitcoin and the Rubbish Dump

Imagine a person with a crypto wallet worth more than $100m accidentally throwing away the hard drive containing the login details. This is what happened to James Howells from south Wales. Due to the nature of crypto, recovering or resetting passwords is not easy. There is no customer support helpline like in traditional banking. Unfortunately, his local council in Newport refused to let him enter the landfill site where the hard drive ended up. He even offered to donate 25% of his Bitcoin to local charities, but they still refused.

Crypto King Fraudster

Former billionaire crypto mogul Sam Bankman-Fried, the founder of the crypto firm FTX and nicknamed 'Crypto King', lost a significant amount of Bitcoin. FTX was a cryptocurrency exchange that allowed people to trade normal money for cryptocurrencies like Bitcoin. Bankman-Fried's empire was worth about $32bn until everything crashed within days. Journalists discovered that FTX was financially shaky and that Bankman-Fried had been transferring customer money to boost his other company, Alameda Research. In March this year, an American court sentenced him to 25 years in prison for fraud and money laundering.

Investment Bank Boom

Bitcoin continues to attract attention from investors and big companies worldwide. In January 2024, some of the world's biggest financial firms added Bitcoin to their official asset lists as Spot Bitcoin ETFs. These are like stocks and shares linked to the value of Bitcoin, and customers have been pouring billions into these new products. This is a significant milestone for crypto as some fans believe that people are finally taking Bitcoin seriously, just as its mysterious creator, Satoshi, envisioned. However, some still expect more wild moments as the Bitcoin story continues to unfold.

President-elect Donald Trump made a significant announcement on Wednesday, revealing his intention to nominate cryptocurrency advocate Paul Atkins to chair the Securities and Exchange Commission. This move has sparked various reactions and discussions within the financial and regulatory realms.

Trump's Endorsement and Atkins' Background

Trump emphasized that Atkins, the CEO of Patomak Partners and a former SEC commissioner, is a "proven leader for common sense regulations." In the years since leaving the SEC, Atkins has been a vocal advocate against excessive market regulation. He firmly believes in the potential of robust and innovative capital markets that can meet the needs of investors and provide the necessary capital to make the economy the best in the world. Additionally, he recognizes the crucial role of digital assets and other innovations in driving America's growth.Atkins began his career as a lawyer and has extensive experience working in the financial markets sector, both in government and private practice. In the 1990s, he worked on the staffs of two former SEC chairmen, Richard C. Breeden and Arthur Levitt. His tenure as an SEC commissioner, which started in 2002, was a time of significant corporate scandals at Enron and WorldCom, putting intense pressure on Wall Street and its regulators. During this period, he was widely regarded as the most conservative member of the SEC and had a strong free-market inclination. As a commissioner, he called for greater transparency in analyzing the costs and benefits of new SEC rules and emphasized investor education. He also advocated for increased enforcement efforts against those who defraud investors through internet-based schemes, market manipulation, and other forms of fraud.However, Atkins has faced criticism for objecting to stiff penalties imposed on companies accused of fraudulent conduct, arguing that they do not effectively deter crime. His stance on certain regulatory issues caused a stir in 2006 when he stated that granting stock options to executives before the disclosure of news that would increase the share price did not constitute insider trading.

The Current SEC Leadership and the Crypto Industry

The SEC currently is led by Gary Gensler, who has been at the forefront of the U.S. government's crackdown on the crypto industry. Gensler, nominated by President Joe Biden, announced last month that he would be stepping down from his post on January 20, 2025, the day of Trump's inauguration. This timing has added to the anticipation and uncertainty surrounding the future of crypto regulation.Since Trump's election victory, money has been pouring into crypto assets. Bitcoin, the largest cryptocurrency, is now trading above $95,000, and shares in crypto platform Coinbase have surged more than 70%. Paul Grewal, the chief legal officer of Coinbase, congratulated Atkins on his nomination, expressing appreciation for his commitment to balancing regulation and looking forward to his fresh leadership at the SEC.Congressman Brad Sherman, a California Democrat and a senior member of the House Financial Services Committee, expressed concerns that Atkins may not sufficiently regulate cryptocurrencies as SEC chair. He believes that Atkins might take the position that no cryptocurrency is a security, which could lead to significant opportunities for fraud.On the other hand, U.S. Rep. Patrick McHenry, a North Carolina Republican and chairman of the House Financial Services Committee, believes that Atkins has the experience needed to "restore faith in the SEC." He is confident that Atkins' leadership will bring clarity to the digital asset ecosystem and ensure that the U.S. capital markets remain the envy of the world.

Atkins' Previous Experience with Trump

During Trump's first term, Atkins was a member of the President's Strategic and Policy Forum, an advisory group of more than a dozen CEOs and business leaders. This experience has given him an insider's perspective on Trump's economic policies and priorities.In 2017, Atkins joined the Token Alliance, a cryptocurrency advocacy organization, further demonstrating his commitment to the crypto industry.Crypto industry players have welcomed Trump's victory, hoping that he will push through the legislative and regulatory changes they have been lobbying for. Trump himself has launched World Liberty Financial, a new venture with family members to trade cryptocurrencies, highlighting his interest and involvement in the crypto space.