History of Bitcoin

Have you heard of cryptocurrencies? If you are unfamiliar with Bitcoin, Bitcoin is the first and most widely recognized cryptocurrency. It enables peer-to-peer exchange of value in the digital realm through a decentralized protocol, cryptography, and a mechanism in a public transaction ledger called a 'blockchain.'

According to legend Satoshi Nakamoto began working on the bitcoin concept in 2007. While he is living in Japan, it is speculated that Nakamoto may be a collective pseudonym for more than one person. It may have been a code name. Nakamoto was active in the development of bitcoin up until December 2010. Many people have claimed, or have been claimed, to be Nakamoto. But no one knows who Satoshi Nakamoto is…

On August 15, 2008, a patent application was filed by Neal King, Vladimir Oksman, and Charles Bry. But they deny connection to Satoshi Nakamoto, an alleged originator of the bitcoin concept. Three days after August 18, 2008, bitcoin.org was born; the domain was registered at anonymousspeech.com, which allows users to register domain names and currently accepts Bitcoins anonymously. On October 31, 2008, the white paper was published, a design paper through a metzdowd.com cryptography mailing list that describes the Bitcoin currency as a peer-to-peer electronic cash system and solves the problem of double-spending to prevent the currency from being copied.

Creating bitcoin is called mining; Satoshi Nakamoto mined the first blockchain for bitcoin on January 3, 2009, called the genesis block. During that time, Bitcoin was only available for miners. On January 12, 2009, The first transaction of Bitcoin currency, in block 170, took place between Satoshi and Hal Finney, a developer and cryptographic activist. On October 5, 2009, New Liberty Standard established an exchange rate, and Bitcoin was rated at US$1 = 1,309.03 BTC, using an equation that includes the cost of electricity to run a computer that generates Bitcoins. On February 6, 2010, a currency exchange was born; the Bitcoin Market was established by dwdollar as a Bitcoin currency exchange. August 15, 2008, Neal King, Vladimir Oksman, and Charles Bry filed for an encryption patent application published On February 18, 2010. Encryption patents generate encryption and decryption keys that lock the message data so that only authorized parties can access content by decrypting or "unlocking" the data.

On May 22, 2010, the first real-world transaction using bitcoin took place in Jacksonville, Florida programmer Laszlo Hanyecz offered to pay 10,000 Bitcoins for a pizza on the Bitcoin Forum. At the time, the exchange rate put the purchase price for the pizza at around US$25. With monetary value, 10,000 Bitcoins is worth 118 million dollars today

When bitcoin got famous, it caught the attention of the wrong crowd like drug dealers and the black market. Until 2013 bitcoin was mostly used in illegal activities, Bitcoin transactions can go under the radar, so for people with something to hide, Bitcoin was heaven sent. There was even a website called Silk Road. It was created in 2011, and it was a Bitcoin marketplace for drug deals called eBay for drugs. Things took a turn when people decided to look at bitcoin as a medium of exchange. Over the years, Bitcoin price was a roller coaster. Today, in all bitcoins history, the highest value of bitcoin was recorded at $28,700 per unit on December 30, 2020.