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Cryptocurrencies were initially created with a clear purpose in mind. The first of its kind, Bitcoin, aimed to replicate the properties of gold—especially its scarcity—while serving as a decentralized currency. Launched amidst a backdrop of distrust toward traditional financial systems, Bitcoin provided a means for individuals to transact anonymously and securely.
Bitcoin's early surge in popularity can be attributed to its use on the dark web, where users sought anonymity in their purchases. This anonymity created a tight demand—outpacing the gradual supply increase due to mining—which subsequently drove the price to unprecedented heights. As more investors took notice, Bitcoin's reputation transformed into that of a robust investment vehicle rather than merely a currency.