Short History Of Bitcoin: When, Where, And How

Bitcoin is a very young currency that already has a rather rich history. It became a phenomenon of 2000’s. After the impressive price fluctuations, we’ve seen in 2017, many people are looking for ways to get bitcoins. How did it all begin? Should you invest in bitcoin in 2018? A little history may help you make the right choice.

Birth of Bitcoin

In October 2008, the subscribers of gmane.comp.encryption.general received an email from someone, who called himself Satoshi Nakamoto. In the email, this person or a group of people described the nature of a new cryptocurrency called bitcoin. The subscribers found out that the new currency is safe from fraudulent schemes, doesn’t depend on any organizations, and allows the owners to use it anonymously. The same information about bitcoin appeared on the website bitcoin.org.

First Transaction

The official year of bitcoin’s birth is considered to be 2009. In January 2009, the first bitcoin application was launched. The starting block in the system was generated by the founder of bitcoin, Satoshi Nakamoto. A few days later, one bitcoin user initiated a transaction of transferring the coins to another user’s account.

Where did bitcoin come from? It was generated on the users’ computers. When it just came to life, the bitcoin’s rate was about 1000 per $1.

The first major bitcoin transaction involved buying a pizza. In May 2010, one of the forum’s users said that he is ready to pay 10,000 bitcoins for a pizza. At that moment, the cost of such pizza was about $25.

First Bitcoin Exchange

In 2011, MtGox exchange appeared and became the first platform, where a user could exchange bitcoins for real money. Bitcoin’s rate experienced many ups and downs. However, the overall trend shows growth. In 2011, one bitcoin cost only $10. In 2013, the rate skyrocketed to $600. The year was tough for the bitcoin since the value reached new highs and lows. In 2016, bitcoin made another jump, and the rate became about $1,000 per bitcoin. The year 2017 was the most exciting year for the cryptocurrency. It’s cost ranged from $1,000 to $19,800. Experts from Cryptoncy.Net predict that by the middle of 2018 Bitcoin price can ... what makes Bitcoin very attractive for investments.

Bitcoin’s Support

As opposed to other currencies, bitcoin is not supported by any tangible assets. None of the banks support bitcoin. How can anyone trust such a currency when it doesn’t have any financial guarantees?

Satoshi Nakamoto never planned to support bitcoin with gold or shares. This payment system has completely different properties. The price formation fully depends on supply and demand. Many experts believe that the bitcoin is created in such a way that its cost will increase in time. It stems from the fact that the effort for mining each new coin is becoming bigger each time.

Initially, bitcoin was created as an independent decentralized system for anonymous transactions. The currency doesn’t have an owner. The stability of the bitcoin can’t be affected by authorities or large corporations.

Bitcoin Advantages

Many people believe that bitcoin is a worthy investment due to the following factors:

  • Bitcoin is highly protected from falsification (it’s almost impossible to generate false keys or imitate the existing ones).
  • Each transaction has a complicated security system, which consists of at least six verifications.
  • It’s impossible to mine bitcoins without expensive hardware.
  • The number of services you can get for bitcoins is getting higher each year.
  • The system protocol changes are possible only if 90% of the community agrees.

Who Is Satoshi?

The real identity of Satoshi Nakamoto is still unknown. Judging from the name, he should be Japanese. But is he, really? Perhaps it’s a group of people, who created the bitcoin and decided to stay anonymous.

The experts believe that Satoshi Nakamoto should be very wealthy today. Because at the end of 2013, he already had enough bitcoins to sell them for 1 billion dollars. Today, this person or a group of people aren’t doing anything connected with bitcoin. Nakamoto made a statement about it back in 2011. He said that he is sure that bitcoin is safe in the hands of Gavin Andersen and his team.

Bitcoin history is mysterious and exciting. It came out of nowhere and conquered the world. It seems as if more is yet to come.

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