Nobody knew Bitcoin before. Even the word “cryptocurrency” didn’t ring a bell. During the pre-financial crisis, the world is into consumer technology. But, there’s this one person who disrupted the world. His disruption is the beginning of bitcoin.
The Legend of Satoshi Nakamoto
Satoshi Nakamoto is a legendary person. He is a mystery, and he does not exist. Nakamoto released a white paper entitled Bitcoin: A Peer-to-Peer Electronic Cash System in 2007. This white paper started it all.
On August 15, 2008, Neal Kin, Vladimir Oksman, and Charles Bry filed an encryption patent application for Bitcoin. However, they denied any relationship with Nakamoto. Many believed that Nakamoto is a group of programmers who don’t want themselves known.
On January 3, 2009, Nakamoto mined the first Bitcoins, and it sparked blockchain technology. The block that Nakamoto mined is called “the Genesis block.” The first Bitcoin transaction occurred on January 12.
The Bitcoin Exchange
The first and official exchange rate of Bitcoin is 1,309.03 BTC per US dollar. The New Liberty Standard published this rate on October 5, 2009. The rate was computed using a formula that considered the amount of electricity needed to mine one Bitcoin.
Bitcoin Market launched on February 6, 2010. It is the first cryptocurrency exchange to trade Bitcoin. On May 22, 2010, Bitcoin Pizza Day happened. This day is the first recorded Bitcoin transaction where Laszlo Hanyecz bought two pizzas for 10,000 Bitcoins.
In just two years, Bitcoin reached a market capitalization of US$1 million on November 6, 2010. The price of one coin at that time was US$0.50 per BTC.
The Next Level
Bitcoin became so widespread that the first Bitcoin call option occurred, and it opened a lot of opportunities for Bitcoin. By 2011, Silk Road launched, which tainted the image of Bitcoin. This marketplace sells drugs and accepts Bitcoin as payment.
On January 28, 2011, almost 25 percent of the 21 million Bitcoins had been mined. With this, the difficulty of mining has increased.
The most important day for Bitcoin happened on February 9, 2011. The exchange rate of Bitcoin equaled the US dollar one-to-one. On April 12, the first Bitcoin put option contract was sold.
Time Magazine immortalized further the existence of Bitcoin when it published an article about it on April 16, 2011.
Fast Forward to Now
Bitcoin is now trading at US$7,085.31 per BTC. Many scandals and issues since 2011 happened. But, the cryptocurrency remains firm amid public opinion. Will Bitcoin see a bright future? Will the world ever know Satoshi Nakamoto?
The growth of Bitcoin amid criticism shows that the idea thrived from a white paper and now a real thing. There’s one thing for sure here – Bitcoin has more to offer.