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A Very Brief Look At Bitcoin’s History

Bitcoin was first introduced in a 2008 white paper published by Satoshi Nakamoto, which is a pseudonym or group. Nakamoto posted the Bitcoin white paper on a mailing list explaining how the cryptocurrency would work.

While the bitcoin white paper was released by Satoshi Nakamoto, a pseudonym used by the creators or creators of bitcoin, on October 28, 2008, many argue that the minting date of January 3, 2009 represents the birthday of Bitcoin. On January 3, 2009, the original block (or block zero) of Bitcoin was mined by Satoshi.

The Bitcoin software was then made public and began mining, the process of creating new bitcoins and recording and verifying transactions on the blockchain. The backbone of Bitcoin is blockchain technology, which is used to record transactions on its network. A blockchain is essentially a public ledger; every bitcoin transaction made in a block is recorded.

Satoshi Nakamoto, whose true identity is still a mystery, mined the first block, known as the Genesis Block, of the Bitcoin network on January 3, 2009, effectively piloting blockchain technology. In the Genesis Block, the text “banks on bring of second bailout” appears. The text refers to a headline in the British newspaper The Times dated to that date, and is generally seen as proof of the date that bitcoin was first mined.

The first version of the Bitcoin software was released on January 9, and the first ever bitcoin transaction occurred on January 12, when Nakamoto sent 10 bitcoins (BTC) to famous programmer and developer Hal Finney in block 170.

One of the first popular bitcoin transactions involved 10,000 BTC used to indirectly buy two pizzas delivered by Papa Johns. The transaction took place between two BitcoinTalk forum users.

By the end of the year, in October, the Neo-Liberty Standard released the first Bitcoin exchange rate in the history of the young cryptocurrency, considering that $1 is worth 1,309.03 BTC. The real adoption of Bitcoin began about two years later, when the price of Bitcoin saw its first major surge. In early 2009, Satoshi Nakamoto released Bitcoin to the public, and a group of enthusiasts started trading and mining Bitcoin.

Then, on January 3, 2009, the Bitcoin network went live with the mining of the genesis block, allowing the first batch of transactions to launch the blockchain.

The history of bitcoin as a store of value has been turbulent. It reached $1,000 in 2013. It soared to around $20,000 per coin in 2017, but in less than a few years it was trading at less than half, and even fell to as low as the $3000 range. And, when its price fell, the interest of most people fell, as well. Prices reached an all-time high in bitcoin history in January 2018 and since then many new crypto assets have joined including EOS (July 2017), Tron (September 2017) and Cardano (October 2017).

Bitcoin has been traded by firms such as venture capital (with backers like Tim Draper and Andreessen Horowitz’s Marc Andreessen), hedge funds, and more. Bitcoin has become the most valuable and widely available among the thousands of cryptocurrencies created since then.

Bitcoin was created as a peer-to-peer electronic money system, but it also attracted curious investors as a reserve currency comparable to gold. Bitcoin is widely regarded as the first modern cryptocurrency, the first public medium of exchange to combine decentralized control, user anonymity, blockchain record keeping, and built-in scarcity.

Bitcoin enables transactions without a government, relying on digital signatures rather than centralized government fiat currencies. Although Bitcoin was the first full-fledged cryptocurrency, there have been previous attempts to create online money using encrypted ledgers.

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