Lesson 8: Why were cryptocurrencies invented?

Why does this lesson matter?

As we have learned so far, there are many types of cryptocurrencies. And each one was created to solve a different problem. In this lesson, we will look at Bitcoin, the ancestor of cryptocurrencies, as an example, and touch on the background of its birth to understand why cryptocurrencies are necessary.

What you can learn in this lesson

  • The story behind the birth of Bitcoin
  • Why do we need cryptocurrencies in today's society?

Let's learn about the story behind the birth of Bitcoin

Bitcoin, the ancestor of cryptocurrency, was invented by an as yet unidentified person who calls himself Satoshi Nakamoto.

His paper, "Bitcoin: A Peer-to-Peer Electronic Cash System," became the blueprint for Bitcoin.

It was this nine-page paper that started the Bitcoin revolution.


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Why was Bitcoin necessary?

This paper describes the background of the birth of Bitcoin.

Bitcoin was created to solve the problems of the modern money transfer system.

Modern remittance systems work by using a third party, such as a bank, as an intermediary.

However, this method is inconvenient because it incurs large fees and the system cannot be used on holidays.

Satoshi Nakamoto invented bitcoin as a solution to this situation.


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