The Curious History of Bitcoin

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The Curious History of Bitcoin
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Bitcoin is the reason behind the cryptocurrency craze.  A mysterious, yet amazing virtual currency that was set out to change the world, is slowly but surely moving towards its goal. If half a decade ago BTC was an unknown and dangerous concept, today almost everyone in the world is well accustomed to its basic principles and work process. But how did it all begin? What were the milestones that Bitcoin had on it’s path? The cryptocurrency king is an extremely interesting case of the revolutionary idea finding its way into our everyday lives. 

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The Beginning…

It all started on August 18, 2008. On this day, the website – Anonymoussspeech.com received an application, requesting the registration of the domain name: Bitcoin.org. The Domain was registered to one; Satorshi Nakamoto, which later turned out to be the alias name of the creator of Bitcoin. To this day nobody knows the true identity of this revolutionary innovator. 

Couple of months later, on October 31, 2008, Satoshi Nakamoto published the official White Paper of his creation. 31 October is generally recognized to be the date of the birth of Bitcoin. This White Paper contained a detailed description of the cryptocurrency’s work process. Peep-to-Peer digital currency transactions were explained, with the main advantage of not needing any financial institutions to oversee the transfers. This white paper also contained 11 different sections, detailing; transactions, payment verification, privacy protocols, proof of work and etc. 

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The Genesis and the first Transaction

The final process of the beginning stage was the event enthusiasts refer to as “Genesis”. On January 3, 2009, Satoshi Nakamoto created his first Blockchain Block of Bitcoin, which contained 50 BTC. The Genesis Block was accompanied with a message: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”. This sentence was widely interpreted to be his assurance of the undisputed need for the decentralized currency, considering the well-established turbulent history of financial institutions when it comes to financial crises. Later the first transaction is completed, when Satoshi personally transfers 10 Bitcoins to then game developer and cryptographer Hal Finney. 

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The Pizza Day, Economy and Parity with the US Dollar. 

The first real world transaction for physical goods in the history of cryptocurrencies happened on may 22, 2010. On that day, programmer Laszlo Hanyecz was so eager to eat Papa John’s that he paid an insane amount of 10,000 BTC for 2 pizzas. Although, back in May of 2010, that amount of cryptocurrency was equivalent to around $30. Aside from being the first ever real-life transaction of crypto, this event gave Bitcoin its first ever measurement of price. Another person who was involved in this transaction with Laszlo, valued BTC at approximately $0.0025 back then. This Exchange happened on the forums of BitcoinTalk.org and is infamous for the fact that by today’s rates, a person spent around 70 Million USD on 2 pizzas. Not long after this event, the bitcoin economy exceeded $1 Million on November 6, 2010. 

On February 9, 2011, Bitcoin reached parity with USD. This meant that the price of BTC and USD was exactly 1 to 1. This historical milestone was the first signal of the future to come. From that day on, the enthusiasts started looking towards the future of decentralization, and the major financial institutions started to keep a close eye on further developments of Bitcoin. 

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Later Financial Milestones 

The first major increase of the Bitcoin’s price peaked on November 27, 2013. On this day the price of single bitcoin exceeded $1000. This event was caused by miners and bitcoin exchange websites entering Chinese Market. Back then the major exchange website, Mt. Gox was involved in about 70% of all known BTC transactions. This was the first time that the general population started to get accustomed to the concept of cryptocurrencies, but nobody could’ve predicted the event that would take place in almost exactly 4 years from then. 

On December 17, 2017, the price of Bitcoin clocked at $19,783, which was the main talking point of the whole planet at the time. Suddenly, everyone’s attention was glued to the further developments in the cryptocurrency saga. There were many people in favor, as well as tons of detractors. Some hailed the event as the major advancement for the concept of decentralization, others called it the fake bubble that was inevitably going to burst. Looking at things from today’s standpoint, it’s obvious that Bitcoin, blockchain and other cryptocurrencies are no bubble, and they don’t plan to go anywhere but forward. 

The rest is history…

Contributed by George Khmelevski

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