Bitcoin History

bitcoin

Bitcoin has a history shrouded in mystery which is appropriate considering the anonymity it provides. The original concept of Bitcoin came from a figure only known as Satoshi Nakamoto. Supposedly this figure provided much of the original software and technical guidance, then vanished and hasn’t been found since. Wikipedia suggests there is circumstantial evidence linking Satoshi Nakamoto patents with individuals who created the bitcoin.org domain. It is also suggested Satoshi Nakamoto is a famous Japanese mathematician.

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Whatever the answer may be, the first Bitcoins were mined on January 3rd 2009 which released the first 50 Bitcoins into circulation. Later in January, the first transaction in the Bitcoin ledger was recorded (the ledger or “block chain” is part of what makes Bitcoin virtually uncheatable today). Ultimately I think the creators of Bitcoin will profit handsomely, not because they can take advantage of the system, but because of the risk they assumed before the Bitcoin infrastructure was stable, generally accepted, and growing.

Notable events in Bitcoin history (and some of my opinion)

Bitcoin started in 2009, but it wasn’t until late 2009 Bitcoin started exchanging against established currencies on a regular interval. The first published exchange rate I could find was back in October 2009, $1 = 1,309.03 Bitcoins (BTC). Today, Bitcoins are costing you over $120 each! That is over a 100,000X increase in value. All that value increase is attributed to the fact that the currency is considered stable and accepted as payment by a growing number of markets, whatever those markets may be.

Here's how Bitcoins have traded against US dollars since 2011

Here’s how Bitcoins have traded against US dollars since 2011

In 2010, Bitcoin saw a lot of that appreciation, with Bitcoins getting close to $0.50 each. The first major and still existing exchange was created, Mt. Gox. It is also notable that 2010 marked the beginning of GPU based “mining” and also the introduction of collective or guild mining. The Bitcoin economy also grew to over $1M US, which was a milestone in Bitcoin’s acceptance and arguable longevity.

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