The History of Bitcoin

 

Bitcoin THIS, Bitcoin THAT! Where did “Bitcoin” even come from? It seems like the popularity of this crypto came out of nowhere! This virtual currency revolutionized payments because it does not require a third party, like a bank, to complete a transaction. However, despite it being really popular a lot of people are still confused about it. And because of this we’re going to dive into the history of Bitcoin, and the timeline of its conception.

Traveling Back In Time

To start it off, we’re going all the way back to 1998. Where there were attempts at creating secure online currencies dating back to 1998 like B-Money and Bit Gold (which were never really fully developed).

Now moving forward 10 years to 2008, a design paper titled “Bitcoin – A Peer to Peer Electronic Cash System” was posted to a mailing list about cryptography. Satoshi Nakamoto is rumored to be the creator of Bitcoin. In fact, “Satoshi” means quick witted or wise, “Naka” means medium or relationship, and “Moto” means origin or foundation.  However people believed that to be a pseudonym, and to this day, no one knows who he really is.

The following year after Satoshi Nakamoto’s paper was released, the Bitcoin software went public. In light of that, the first ever Bitcoin, titled “The Genesis Block” or “Block 0”, was mined. In addition, 2009 was also the year wherein the New Liberty Standard published the first Bitcoin exchange rate set at US$1 = 1,309.03 BTC. They got that exchange rate by computing for the electricity consumption that a computer used to generate Bitcoin.

The Birth of Bitcoin

In 2010, the first Bitcoin transaction was made with Block 170. It was between Satoshi and Hal Finney, a developer and cryptographic activist. That same year, someone decided to sell 10,000 Bitcoins for two pizzas (equal to about $25 at the time). If he had held onto those Bitcoins, they would be worth over $100 million. How crazy is that?

For the most part, Bitcoin has been living up to its volatile reputation by increasing and decreasing in price and taking its investors along a crazy roller coaster ride. What do you think is the next milestone for Bitcoin? Let us know in the comment section down below!