The birth of bitcoin

The history of Bitcoin began with an anonymous document, written in a dry academic style. 10 years have passed since that moment and today you can buy bitcoins in all countries of the world. This is one of the most influential financial instruments in the modern world.

Over these 10 years, the cryptocurrency has gone a long way, there have been many ups and downs. You can briefly describe the history of development and how it was.

The Bitcoin Bible

Cryptocurrency description the world received on October 31, 2008. It was a small document consisting of 9 pages. The work was published by an unknown person who called himself Satoshi Nakamoto. Until now, it is not clear this is the real name or fictitious. From that moment, the history of the project began and it became possible to buy Bitcoins everywhere.

Satoshi’s main goal was to create a universal mechanism that will work worldwide. You can exchange bitcoin to a card in a few minutes. In this case, payments are made directly, without intermediaries, without banks, without other institutions. This led to the fact that absolutely anyone can buy bitcoin for cash. The main difference between Bitcoin and world currencies is that no one can control a currency, not a single country or institution.

Development

The first 50 bitcoins appeared on January 3, 2009. From this a powerful process was launched. Each new unit is completely dependent on the previous ones. The first data transfer took place in a few days. Nakamoto himself sent 10 bitcoins to Hal Finney, a computer expert, to test the performance of the system. It was important to check how the system works, how to make transfers, how to cash Bitcoin and whether everything functions correctly.

The price of one coin is $ 0.00076

It’s hard to believe today, but once it was possible to cash Bitcoin for such a cost. Such a figure came out of an estimate of the cost of producing one Bitcoin. Currency then could only be obtained by mining. Engaged in this initially on home computers using his computing power. And later bitcoin withdrawal and exchange for other currencies appeared.

Many are interested in the question of why the cryptocurrency has risen in price. This can easily be explained by the fact that the level of complexity of tasks and calculations is becoming increasingly high. The more users and machines that are involved in the process, the more difficult the calculations. From this and the price of Bitcoin. This takes into account the cost of electricity, the cost of equipment and many other factors.

Pizza worth $ 30 million

One of the developers of the currency, Laszlo Khanich, in order to demonstrate the popularity of bitcoin, agreed that he would buy two pizzas for the sum of 10,000 bitcoins.

This operation is considered by many to be the first case when they purchased something for cryptocurrency. At that time, the cost of these pizzas was about $ 44. At the current cost, each pizza would cost more than $ 30 million. Since then, many people on the Internet make jokes about it, estimating pizza based on the real cost of Bitcoin.

The disappearance of Nakamoto

In 2010, Nakamoto announced that he was leaving the project. A few months later he completely stopped all operations. But at that time the exchange of Bitcoin was successfully made already in many countries.

It is also interesting that Satoshi’s identity has never been established. It is also important that nobody knows how many bitcoins he owns.

Crime of the decade

In 2014, one popular exchange declared bankruptcy. At that time, Bitcoin exchanges were made mainly on this exchange. The management claimed that there was a failure in the system as a result of which more than $ 477 million bitcoins were lost. Mark Carpeles, who managed this exchange, did not admit his guilt. It is still not known exactly what happened then, and who was responsible for the attack on the stock exchange.

Price

Bitcoin in its history knew the ups and downs. So in 2017 in January it cost about $ 1000, and already at the end of the year the price was at the level of $ 19,511. Today, its price is about a third of the historical maximum. Analysts ambiguously assess the prospects for the world’s largest cryptocurrency. Some say that it is a sign of stability and demand, others consider it the beginning of decline. In any case, Bitcoin has been around for 10 years and we can safely say that this story will last for quite some time.