Early Growth and Adoption

a. 2011-2012: Expanding Interest:

• As Bitcoin gained attention, other cryptocurrencies began to emerge. Litecoin was created in 2011 by Charlie Lee as a “lighter” version of Bitcoin, with faster block generation times and a different hashing algorithm.
• Bitcoin’s price began to increase steadily, reaching $1 for the first time in 2011. It also gained media coverage, and a few merchants started accepting Bitcoin as payment.

b. Regulation and Legal Challenges:

• In 2012 and 2013, Bitcoin faced scrutiny from governments, regulators, and financial institutions. Some countries, like China, banned the use of Bitcoin, while others, like the U.S., started taking a more cautious approach, debating how to classify and regulate cryptocurrencies.
• Mt. Gox, one of the largest Bitcoin exchanges, was hacked in 2014, leading to the loss of hundreds of thousands of BTC. This event highlighted the risks of holding Bitcoin on exchanges and the importance of secure storage.