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Bitcoin – the new Currency of the Internet

ByDave Stopher

May 4, 2020

Bitcoin has undoubtedly been the pinnacle of financial evolution over the past decade, and it has held this position firmly for several years. The question “How did Bitcoin appear?” Due to the popularity of this cryptocurrency, they are asking more and more often.

Let’s figure out who invented Bitcoin, and plunge into the history of Bitcoin.

On October 31, 2008, a person (or group of people) who introduced himself under the pseudonym Nakamoto posted a document on the now-popular cryptographic site bitcoin.org and spoke about it through the e-mail message distribution system. The document consisted of 9 pages and was called “Bitcoin: Peer-to-Peer Electronic Payment System”. Programmer showed the world the source code of the first version of Bitcoin calculation software on the website.

From that moment, the Bitcoin protocol officially started working, and Nakamoto mined the first 50 Bitcoins. The protocol was a breakthrough in the world of cryptography, although it was based on already known encryption methods, but no one before Satoshi Nakamoto thought of using these algorithms to implement a payment system without intermediaries.

We can say that this was the beginning of the end of our usual idea of ​​money, as it is, and the dawn of a new era in the world of finance. Further, brilliant programmers from around the world contributed to the development of Bitcoin thanks to its open source code.

First commercial transaction of bitcoin

The first commercial transaction for the “cue ball” was made in May 2010: one programmer bought pizza for 10,000 Bitcoins. Given the current rate of Bitcoin, someone ate the most expensive pizza in the world, although at that time it actually cost him $ 25.

In 2011, Bitcoin begins to actively develop as a digital payment system. Thanks to her anonymity, she began to be actively used for black online markets. This year is marked by the emergence of Silk Road (Silk Road) – an anonymous site for the sale of illegal goods, drugs and so on. The site lasted until October 2013, was closed by the FBI, and its owner received a life sentence.

Such famous publications as Forbes, Time, and Bloomberg vied with each other to write about Bitcoin. Politicians were negative, and scientists became interested in this phenomenon, so the Internet began to be filled with more and more publications about Bitcoin. Everyone began to talk about him.

In the same 2011 year, Bitcoins became available for exchange for the British pound, the Brazilian real, the Polish zloty, the euro, etc., and the world famous company Wiki Leaks began to accept anonymous donations in cryptocurrency.

In 2012, the Russian-Canadian programmer VitalikButerin founded the successfully working to this day Bitcoin Magazine – a magazine specializing in Bitcoin and other digital currencies.

In 2012, the Bitcoin-Central.net exchanger received an official banking license, which meant that anyone with a card from this bank could pay with cryptocurrency, which was automatically converted, for example, into Euros, and accepted transfers of different currencies that were converted in bitcoins.

You can make bitcoin trade with bitcoin treasure. In the era of the emergence of any financial innovation, lovers of easy money always appear, such craftsmen did not pass over Bitcoin. Bitcoin Savings & Trust was accused of using the Ponzi scheme, and its owner, who had not paid his debts, disappeared. Under the trend of this event, the rate of Bitcoin fell by as much as 30%.

When Bitcoin ATMs appears?

Bitcoin ATMs began to appear one after another, first in the USA and Canada, then in Finland, Australia and so on. Germany allowed Bitcoin to be used for private and commercial purposes, recognizing cryptocurrency as a form of private money. There are several Bitcoin FinTechs offering Bitcoin debit cards that can be used on ATMs all over the world, such as AdvCash BTC card and others.

In subsequent years, the scale of use of Bitcoins only grew and continues to grow. 2017 was the most stunning year for the main cryptocurrency in the world, when its value exceeded the value of a ounce of gold. Did the one who created Bitcoin thought that his idea would get such a huge scope and success? One can only guess. And the story of Bitcoin does not end there at all, definitely a very bright future awaits him, and the time is not far off when he will receive recognition even in the most conservative countries.