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The History of Bitcoin

From its humble beginning in 2008 up to its price peak in 2021, Bitcoin has taken more investors and different people all around the world to invest, hold, and wait until its price reaches its highest value. Bitcoin is a decentralized peer-to-peer electronic exchange wherein people can send money directly to other people without using the services of a bank or a third party acts as an intermediary. It was created so that people don’t need to rely on financial or government institutions in making financial transactions. Before digging deeper into its uses, let us know first the history of Bitcoin. 

Bitcoin’s History

Satoshi Nakamoto

The history of Bitcoin began with its invention and implementation by Satoshi Nakamoto who integrated many existing ideas from the community of cryptography. On October 31, 2008, Bitcoin started when he published a white paper detailing a design for a peer-to-peer electronic cash system which is a global financial infrastructure that is based on cryptographic proof instead of trust. Satoshi Nakamoto is presumed to be a pseudonym only used by the person or people who designed the original protocol of Bitcoin in 2008 and launched its network in 2009. He was responsible for creating the majority of software of the official Bitcoin and was active in doing modifications and posting technical info on the Bitcoin forum.

Impact of Bitcoin

Cryptocurrencies especially Bitcoins are now being discussed regularly in the digital context of global economic policy and made an influence and big impact on that even other nations are now doing their research and began developing their digital currencies. The underlying data structure of Bitcoin or BTC which is usually referred to as the blockchain has been researched thoroughly and implemented well in the use of different cases that is ranging from supply chain management to logistics, energy trading, decentralized autonomous organizations, cross-enterprise resource planning, and others.

The Birth of Bitcoin

After Satoshi published their 8-page proposal stating for a new digital cash system on a mailing list, they opened up the project to debate and discussions from a different online group of cryptographers, digital cash veterans, and computer scientists. While the anonymous Satoshi wrote much of the BTC codebase before he published the white paper, he led to open it up to public scrutiny among some online community of peers. From early days, Bitcoin was an open-source software project that was built and maintained by a community of enthusiasts and developers. Bitcoin was registered on November 8, 2008, on the open-source software development platform named SourceForge wherein Bitcoin became a team project.

Genesis Block

On January 3, 2009, block zero or the genesis block for Bitcoin was being mined by Satoshi over seven days. In this general or initial transaction or coinbase, he famously included the following message which was, «the Times 03/Jan./2009 Chancellor on brink of second bailout for banks.» His message was a clear signal of the intention of Bitcoin. The first test transaction took place about a week later and for the first few months of Bitcoin’s existence, it was only obtainable by miners who were validating the Bitcoin blockchain. During that time, the world was experiencing the Great Depression which was the largest financial crisis, a new vision for a digital monetary system separate from the state was being born. The first post-genesis transaction of Bitcoin occurred on January 12, 2009, between Satoshi and Finney who was a cryptography activist in block 170. Finney was also reported as the first person to mine Bitcoin with Satoshi after the launch of the network.

Bitcoin Pizza Day

It happened on May 22, 2010, as the first day to record the use of Bitcoin in an exchange of a good or service when Laszlo Hanyecz, who was a Floridian programmer offered to pay 10,000 worth of BTC for pizza. The initial exchange rate of Bitcoin had been established a few months prior. At the time of purchase, it was estimated that the price of the two large John’s pizzas was around $25. It is significant to note how promising the Bitcoin network was at that time. In the discourse around the used case of Bitcoin as a medium of exchange, the famous transaction of Hanyecz is often brought up as an example of how the price of Bitcoin would run counter to its use as an effective and emerging currency.

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