The history of the creation and development of bitcoin

The first bitcoin enthusiasts were crypto and new technology enthusiasts, as well as IT specialists. An untrained person did not need bitcoin: at that time the words “mining” and “blockchain” meant nothing to the general public, and anonymous cryptocurrency exchange could not be exchanged for fiat money.

That’s how it all began: discussion on forums, mining on computers and test transfers within the network. No one could have thought that in just 10 years Bitcoin would be discussed at State Duma meetings, special equipment and hangars would be built for mining, and the number of daily transactions would reach hundreds of thousands.

Many people have a natural question: why has the popularity of bitcoin grown so much? In this article, we will analyze the history of the creation and development of bitcoin from 2008 to 2020.

How the Bitcoin cryptocurrency appeared

In late 2008, subscribers to the gmane.comp.encryption.general mailing list received a letter from a certain Satoshi Nakamoto. In the letter, Satoshi talked about the new monetary system, which was distinguished by decentralization, anonymity and a clear algorithm of work.

Around the same time, the domain was registered. On it, the creator (or a group of creators) published a white paper document how a new cryptocurrency called Bitcoin works.

Satoshi was the first to create cryptocurrency, but the very idea of an unregulated and anonymous digital currency came about ten years before BTC. Back in 1998, Wei Dai proposed a similar system, calling it b-money. Neil Stevenson wrote about this in the novel “Cryptonomicon”, which was published in 1999. In the same year, economist Milton Friedman said that such a currency would soon appear.

Nick Szabo believed that counterfeiting, theft and inflation were the main problems of classic money. He spent seven years trying to create a decentralized digital system free of these shortcomings. The Bitgold project – as this system was called – did not live up to launch and was closed in 2005. After 4 years, bitcoin appeared, which offered a technological solution to the mentioned problems.

Who is Satoshi Nakamoto?

Satoshi Nakamoto is the pseudonym of the person or group of people who developed the first version of Bitcoin. In order not to reveal his identity, Satoshi only went online through the Tor browser and anonymously registered the domain. It was not possible to find out who is hiding behind the pseudonym.

In his profile, Satoshi indicated that he was born on April 5, 1975 and lives in Japan. This information is being questioned: Satoshi has excellent English, and he wrote all documents about Bitcoin in this language. Initially, Bitcoin software was not localized for Japan at all.

Satoshi’s date of birth contains two whole references to gold, although perhaps this is a simple coincidence. On April 5, 1933, the President of the United States prohibited Americans from accumulating in gold, but in 1975 this law was repealed.

Experts doubt that it was possible to write the bitcoin code alone. Former Bitcoin Core developer Laszlo Hanjec said the code was “too good” for one programmer. Cybersecurity researcher Den Kaminski also argues that only a genius could create a project on his own.

Satoshi Nakamoto stopped posting at the end of 2010. Until now, his identity has not been established.

First deals with BTC

The first documented exchange of BTC for USD took place in September 2009 at a rate of 100 BTC per dollar. By winter, the price increased to $ 1 for 700 BTC. The rate was calculated using a simple formula from Satoshi Nakamoto: the number of kilowatt-hours spent was multiplied by the cost of electricity and divided by the number of coins mined. Soon, the first exchangers appeared, where the market demand determined the price of bitcoin, and the Satoshi formula was no longer used.

On May 22, 2010, a historic event took place: a Bitcointalk forum user with the nickname Laszlo bought two pizzas for 10,000 bitcoins. In August of the same year, 40 pizzas could be bought for 10,000 bitcoins, and in February 2011 – 3,500 pizzas. Laszlo then admitted that he did not expect such a growth. Since then, the crypto community has celebrated Pizza Day every year by poking fun at Laszlo.

Clarification: the number of pizzas is calculated at American prices, in Russia you can buy them 3-4 times more.