The History Of Bitcoin

The History Of Bitcoin

Bitcoin is one of the most talked-about digital assets of the moment, and one of the most controversial, since its future is very uncertain, and technical analysis is rarely enough to determine the future scenario of this cryptocurrency.

Originally, this digital asset was created to function as a medium of exchange, using the so-called “peer-to-peer” technology, to operate without any intermediary, such as a bank or financial entity.

Today, Bitcoin has become, more than anything, a purely speculative asset, which can make you earn a lot of money by having the right knowledge, however, if you don’t have the proper training, it can seriously affect your pocket.

The future of Bitcoin is uncertain, but, what not many people take into account is that it also matters what is behind something, in this case, Bitcoin.

In this article, we will discuss the history of Bitcoin, its origins, and its creator, as well as certain interesting facts that you may not know about this digital asset.

The history of the most important cryptocurrency; Bitcoin

In 2008, specifically in November, an article was registered under the name of Bitcoin: An electronic cash system from Peer-to-Peer, with the name of Satoshi Nakamoto, the creator of Bitcoin.

This article dealt with the issue of how a “Peer to Peer” network could create a system for electronic transactions that does not depend on trust.

“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending.

We propose a solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work.

The longest chain not only serves as proof of the sequence of events witnessed but proof that it came from the largest pool of CPU power.

As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they’ll generate the longest chain and outpace attackers ”

Abstract from “Bitcoin: A Peer-to-Peer Electronic Cash System”

It was on January 4, 2009, when the creator of Bitcoin launched the first block, known as the Genesis block. This was the first block of the blockchain chain.

The first block of genesis served to guarantee communication between all the nodes that were subsequently created.

The reason that this genesis block was so important is that the different blockchains can only be matched if they have the same genesis block, otherwise, both nodes would be incompatible.

One of the pioneers in the development of Bitcoin was the programmer Hal Finney, who was one of the first people to support the development of this cryptocurrency.

Finney downloaded the bitcoin software the day this cryptocurrency saw the light and received 10 bitcoins in the world’s first registered Bitcoin transaction, which would be worth approximately $ 94,173, considering the current price of Bitcoin.

Other of the first were Wei Dai, the creator of b-money, and Nick Szabo, creator of bit gold. Both are considered as the background of Bitcoin.

In the beginning, this cryptocurrency did not enjoy much popularity, and it was the community within the world of cryptography who supported the use of this cryptocurrency, likewise, they began to spread the use of it.

In the beginning, it was only exchanged for entertainment. This resulted in the Bitcoin price almost null.

It was at the end of 2010 when the creator of Bitcoin, Satoshi Nakamoto abandoned this project, but not before having mined around 3.5 billion Bitcoins.

The project was left in charge of the Bitcoin software developer, Gavin Andresen.

To help its dissemination, in 2010, Andresen developed the first Bitcoin faucet that gave away 5 BTC daily.

A cryptocurrency faucet is a reward system that gives away small amounts of Bitcoin or other cryptocurrencies. These small fractions are known as satoshis and are used in the usual way when talking about Bitcoin and, especially, Bitcoin faucets.

This is how the cryptocurrency queen began to be known.

During that year, Bitcoin did not receive too much attention, in fact, for a long time its value remained below a penny of a dollar… However, all this changed in 2011.

2011; Bitcoin star year

In 2011, there were many events with those who made Bitcoin extraordinarily increase its value, for example, some companies and associations begin to accept Bitcoin as a means of payment, such as Electronic Frontier Foundation and Wikileaks.

WeUseCoin, published the first video where he explained professionally what Bitcoin is, giving people a lot of interest and showing the potential.

Currently, that video has more than 10 million views.

Another important event is that in January 2011 Silk Road was founded, a company that distributed narcotics in exchange for Bitcoins.

On June 13, 2011, a forum user announced the first theft of Bitcoin history, something that also gave him a lot of popularity, and that many people set their sights on this currency.

All of the above resulted in the first bubble in the history of Bitcoin. The price of this asset rose to $31, but then the price collapsed.

It was in 2012 when events such as the first appearance of Bitcoin on TV, the foundation of Coinbase, and that many businesses began accepting Bitcoin as a means of payment, made Bitcoin have an upward trend, reaching $13.

In 2013 it was when many government institutions began to get their hands on the cryptocurrency, since on June 23 of that year the United States Drug Control Administration reported that it had seized 11.02 Bitcoins. It was the first time that a government agency seized a digital currency, possibly because some pharmaceutical companies accepted payment through Bitcoins.

Also in that same year, the Government of Thailand banned the use of Bitcoin in the country.

These events made Bitcoin gain much more popularity, reaching $1250.

From that year on, the most important events have been related to the creation of new cryptocurrencies or altcoins, which, intimately also affect the price of Bitcoin.

For example, in 2015 Ethereum was created, one of the best-known currencies to date in the world of cryptography.

Another very important event was that, in 2018, the Spanish Ministry of Finance published the new Tax and Customs Control Action Plan.

In it, there was talk about plans about the control of the fiscal issue about cryptocurrencies.

Bitcoin is still valid to date, being one of the most acclaimed digital assets, and one of the most talked-about, which although its future is uncertain, there is a lot of potentials that can be squeezed for future projects.

To this day, many people believe that Bitcoin will be the new “free bank,” and that in the future, all merchants will accept Bitcoin as a means of payment.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *