The history of Bitcoin

BitcoinIt was in 2007 when Satoshi Nakamoto began working on his concept of a crypto-currency which is using a peer-to-peer network to generate electronic transactions. That were the first steps of a new age of crypto-currencies. When the domain Bitcoin.org was registered in August 2008, nobody could know what great success the currency will have in the next years. Now and then Satoshi Nakamoto is a legend and no one knows if it is a pseudonym for a group or for only one man.

The beginning of Bitcoin

The idea of Bitcoin became more known in November 2008 when the Project hits SourceForge, a community website focused on open source software. Satoshi Nakamoto posted a paper on the internet and present detailed methods of using a P2P network to generate “a system for electronic transactions without relying on trust”. The first open source Bitcoin client released in January 2009 and the network came into existence when Nakamoto mined the first block of Bitcoins ever. This first block was known as the “genesis block” and had a reward of 50 Bitcoins.

The first client was compiled with Microsoft Visual Studio for Windows. The client was so complete that many people speculated it was developed by a group instead of one person. Only three days after releasing the client the first transaction of the crypto-currency Bitcoin took place between Hal Finne (a developer) and Satoshi Nakamoto.

2010

The Bitcoin community grew fast and a freenote IRC channel was created for the crypto-currency fans to discuss the possibilities. With BitcoinMarket “dwdollar” established the first Bitcoin currency exchange in February 2010 and just a few months later, in May, the first real-world transaction  took place. The programer Laszlo Hanyecz from Jacksonville, Florida, offers to pay 10,000 Bitcoins for a pizza and made the deal. With this deal Laszlo was written large in the history of Bitcoin.

Bitcoin became more popular and a mention on slashdot heighten the profile of the crypto-currency. In July 2010 the value increases tenfold from USD 0.008/BTC to USD 0.080/BTC. That was in the time when MtGox, a Bitcoin currency exchange market established by Jed McCaleb. For the next four years MtGox was one of the best known exchange market before it crashed, of which more later.

2011

As early as January 2011 25 per cent of total Bitcoins were generated of Block 105000 – numerical 5.25 million were generated of the projected total of almost 21 million. With the opening of markets all over the world the TIME magazine took notice of the crypto-currency and published the article “Bitcoin, Online Cash Bitcoin Could Challenge Governments, Banks. And in June 2011 Bitcoin reached first $10 on MtGox. This became known as the “great bubble of 2011”.

2012

In this time Wikileaks and other organizations play a part in contributing to the awareness of Bitcoin by accepting it for donations. Bit by bit more organizations and shops accept Bitcoin as a payment method and in October 2012, BitPay, a payment provider, reported having 1,000 merchants accepting Bitcoin.

2013

2013 could name the Bitcoin year because the values exploded. In March 2013 Bitcoin spikes to 74.90 USD and at the same time the total market cap reaches 1 billion USD! In April the value of Bitcoin reached an all-time high of 266 USD – by comparison one year before it was only 13 USD.  Also in 2013 the first Bitcoin ATM was launched and Baidu and Subway starts accepting the currency. On November 17, 2013, Bitcoin doubles and reached 530.10 USD on Mt.Gox. Just two days later it went above 1000 USD after a Senate hearing titled “Beyond Silk Road: Potential Risks, Threats and Promises of Virtual Currencies”. At this time, Bitcoin moves more money than Western Union!

2014

In March 2014 Bitcoin have to struggle with the insolvency of Mt. Gox. After several problems the website was offline and just a few days later Mt. Gox filed for bankruptcy protection. Nearly half a billion dollars was lost due the hacking into the faulty computer system. The Bitcoin community feel certain and hold the opinion that problem was specific to Mt. Gox while Bitcoin itself was still a noble venture. While many investors lost Bitcoins with Mt. Gox the prices fall and some other take the chance to buy on a low level.

We are sure Bitcoin will turn upward and have a great future as an independent crypto-currency!

You want more facts? Check the complete history of Bitcoin