History of Financial Markets
As the saying goes, history tends to repeat itself – whether in terms of financial markets or cryptocurrency market!
Stock markets have become an integral component of the global economy. Across the world, countries look towards stock markets to boost economic growth. The last decade has seen the emergence of cryptocurrency system. Whether in financial markets, assets or cryptocurrency, managing the risks of investment is key to success.
Early financial markets:
It was only in the 1500s that the first real stock market arrived, but there were some examples in the earlier times that were close to today’s stock markets. France started a system in the 1100s with “courtiers de change” managing the debts of farmers across the country for the banks, indicating the first example of debt trading and brokerage.
Later in the 13th century, it is believed that the merchants of Venice traded government securities. The concept then spread to nearby cities in Italy including Genoa, Pisa, Florence and Verona who also began trading.
Soon after many countries including Netherlands, Bruges, Belgium, Ghent and Flanders also had their own stock market systems in the late 1500s. It is widely accepted that Antwerp, the commercial hub of Belgium, was the birthplace of the stock market system that we know today. These stock markets traded in government securities or individual and business debts and not in shares of any company.
By releasing its shares on the Amsterdam Stock Exchange, the East India Company of the U.K. became the first publicly traded one in the world in 1602. The London Stock Exchange came into being in 1801, followed by the New York Stock Exchange in 1817. The NASDAQ (National Association of Securities Dealers) formed in 1971 was the first one to start trading stocks electronically through a network of computer systems.
Birth of cryptocurrency market:
As compared to the stock market, the cryptocurrency market is relatively in its infancy. American cryptographer David Chaum conceptualized electronic cryptograph currency with ecash in 1983 which later was implemented as Digicash. The NSA published in 1996 the first paper on cryptocurrency titled “How to Make a Mint: the Cryptography of Anonymous Electronic Cash.”
Ten years ago in August of 2008, cryptocurrency news made headlines as bitcoin.org domain name was registered while on October 31 Satoshi Nakamoto”, the originator of bitcoin published “Bitcoin: A peer-to-peer Electronic Cash System.”
A year later in 2009, the very first trading in cryptocurrency was recorded with ten bitcoin being sent by Nakamoto to a computer programmer, Hal Finney. In 2010, the inaugural sale of bitcoin occurred with the cryptocurrency having a monetary value being attached. The same year, one of the bitcoin users bought two pizzas for 10,000 bitcoins.
Since then, more than 4000 altcoins have come into being.
With new cryptocurrencies emerging in 2015, they continue to disrupt financial markets across the world. As it continues its journey to become firmly established as a mainstream currency, history as said earlier, repeats itself! The risks of cryptocurrency investments are very much the same as other investments. CryptoStops have developed niche tools to manage risks in a smart way by eliminating emotional decisions, maximizing token trades and formulating an effective strategy to get the most out of your bitcoin.
Get started with free trial subscription here: https://cryptostops.net