The History of Bitcoin
Bitcoin (BTC) was the world’s first decentralized cryptocurrency and according to records it was invented back in 2008 by Satoshi Nakamoto who first published the invention on October 31st 2008 in a research paper entitled: Bitcoin: A Peer-to-Peer Electronic Cash System. When creating Bitcoin, Satoshi Nakamoto combined numerous pre-existing ideas from the cypherpunk community.
The original software to initiate the Bitcoin network was implemented as open source code and this was first launched in 2009. It was also in this year that the first ever units of Bitcoin currencies were introduced and then in 2010 the very first Bitcoin transactions took place, both on desktop and on mobile. At this point in time one bitcoin was valued at $0.50 whereas at today’s rate of exchange, one Bitcoin is worth $1,249.29. Also be aware that a thousandth part of a Bitcoin is a milli Bitcoin (mBTC) and a millionth is a micro Bitcoin (uBTC).
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More Details About The History of Bitcoin
The Early Days
It was pointed out by the New York Times that Nakamoto may have been driven to start the Bitcoin system in direct response to the financial crisis that occurred in 2008. It was also around this same time that one of the first articles about Bitcoin was published, bringing the cryptocurrency out of the shadows and into the light.
Shortly thereafter, another article appeared online about two Papa John’s pizzas being purchased by a Bitcoin miner based in Florida, known as Laszlo Hanyecz. He apparently purchased the food for a total of 10,000 coins which at the time was the equivalent of $25.00. The very first online Bitcoin exchange launched towards the beginning of 2010 and this allowed for the structured trading of Bitcoins. Towards the end of the year the second Bitcoin exchange launched and this soon became the primary online venue to trade Bitcoin for the next couple of years.
Bitcoin quickly gained a bad reputation when it became the preferred online currency for people to purchase illegal goods (such as drugs) on the infamous Silk Road website and this was all possible due to the untraceable transactions. By this time mainstream media had picked up on this new digital currency and most people were, by now, in some way familiar with Bitcoin.
Growth and Development
By 2011, financial markets around the world had been doing well, but the average worker was still just one pay check away from financial ruin. In September we witnessed Occupy Wall Street and in more than 1,000 other cities across the world even more Occupy protests were also taking place with huge swathes of the population looking for an alternative to mainstream banking institutions. Bitcoin couldn’t have arrived at a better time and for a large number of the restless society it quickly became the number one currency of choice.
Blockchain technology (originally block chain) is basically a public ledger that contains details about every Bitcoin transaction that has ever taken place. This online wallet technology is accessible to everyone and it eventually grew over time to include a real user interface with added features, wallet services, payment processes and more. The Bitcoin community rallied together, organised transactions and helped to improve upon the existing open-source software code and by 2012 it was reported that more than 1,000 online merchants now accepted Bitcoin.
Years of Controversy to the Ideal Currency of the Internet
Although Bitcoin has courted its fair share of controversy over the years since its inception, it has also managed to stand the test of time and seems to continue going from strength to strength. The world seemed to finally wake up to Bitcoin in 2013 after a volatile period whereby people experienced 100% price increases. Bitcoin has managed to overcome numerous crises and legal challenges over the past few years and it has always managed to bounce back in a surprising and tenacious way. The upcoming years look to be even more promising for the cryptocurrency.
Bitcoin is undoubtedly the currency of the internet. It has no government tied to it, there are still no delays when sending money and to this day there are few, if any, transaction fess ever incurred by the user. While the majority of the world’s population still don’t consider Bitcoin as ‘real’ money, it can be used to purchase very real items, not just online casino credits, and it continues to make certain people extremely rich. This virtual currency is seen by many as the ideal currency for the internet age and while some countries have made it illegal, others are still trying to regulate it.