03/01/19 01:11 UTC-4

Happy Birthday Bitcoin, or a brief history of the development of "digital gold"

Happy Birthday Bitcoin
Happy Birthday Bitcoin

January 3, 2019 the most popular cryptocurrency in the world – Bitcoin, will celebrate its tenth anniversary!

On January 3rd, 2009, Satoshi Nakamoto created the Genesis BlockGenesis Block
– is a cryptocurrency term used to designate the first block in a blockchain. Thanks to the creation of this block, a new cryptocurrency is being born. Details
(foundational block) of the Bitcoin chain. Until now, Satoshi’s personality remains the unsolved mystery of "digital gold". Since the creation of the first block in the Bitcoin blockchainBlockchain
is a continuous and sequential block chain of information (digital linked list). When building a blockchain, copies of related blocks are simultaneously stored on multiple computers.Details
, we can talk about the beginning of the "era" of virtual money, as well as the birth of the most popular cryptocurrency in the world – Bitcoin (BTC).

As you know, on January 3, together with the Genesis Block, the first 50 Bitcoins were created. Due to the specifics of writing the cryptocurrency code, the first 50 BTC can never be spent or exchanged. The exact reasons for this are unknown, just another mystery that can be added to Satoshi’s confusing and ambiguous story.


The history of Bitcoin – remember how it all began

Over the past ten years, Bitcoin has challenged how modern society looks at global finance and banking. This cryptocurrency undoubtedly became a catalyst for the birth of more than a thousand different crypto-assets, as well as many other blockchain projects.

The history of the development of the BTC was full of ups and downs, contradictions and successes. October 31, 2018 also marked the release of Bitcoin White Paper. From the moment of its placement, a movement began that left a mark on many branches of the world.

On August 18, 2008, the domain name was registered by an anonymous person, as the predecessor of the main part of the work on creating the main cryptocurrency. Then, on October 31, 2008, the "White Paper" was published, called "Bitcoin – an electronic money system in a peer-to-peer network". As you know, the original nine-page document was distributed on the cypherpunk mailing list in November 2008.

On January 3, 2009, Nakamoto successfully created the Genesis Block, the fundamental unit of the Bitcoin chain. Today, the average time between creating new blocks is about 10 minutes. At the time of creating the cryptocurrency, it took a full six days before the next block was added to the Bitcoin chain. Information on this is available, thanks to the timestamps of specific blocks.

There are several theories and opinions, why it took so much time. One of the theories is related to Nakamoto himself, who used the next few days to get the first block to test the network. In addition, there are those who assume that the creator of cryptocurrency waited six days in the figurative reconstruction of the book of Genesis (from the Bible), in which God created the world in six days.

However, the first transactionTransaction
– is a financial term that means a logically meaningful operation that can only be carried out completely. Details
of the BTC  took place on January 12, 2009 between Nakamoto and the late scientist Hal Finney, who was one of the first participants in the project. Nakamoto sent the user Finney 10 BTC as a test. At this time, the famous scientist began to independently extract blocks, becoming the first miner in the history of mankind.

Ten months later, on October 5, 2009, the new "Standard of Freedom" established the first ever Bitcoin exchange rate in relation to the US dollar. At that time, 1 dollar was equal to 2300.03 BTC.

Recall that the first-ever Bitcoin transaction for the purchase of goods took place on May 22, 2010. The incident, which today is called "Bitcoin Pizza Day". Almost nine years ago, programmer Laszlo Hanecz bought two pizzas for 10,000 BTC. Miner offered users on the forum BTC coins in exchange for two pizzas. A teenager named Jeremy Sturdivant, with the network nickname Jercos, took Bitcoin and sent Heinz two pizzas from the "Papa John" pizzeria.

The deal is a comical joke in the world of Bitcoin. Of course, in its own way, it is stunning. After all, one has only to imagine how much today one could buy for the same amount of BTC. Since then, much time has passed. Bitcoin rose in price and dropped significantly several times.


Bitcoin and its place in the global economy

The first rise in cryptocurrency is February 9, 2011, when Bitcoin reached parity with the US dollar in a ratio of 1 to 1. This day marked the beginning of a stormy period of growth in the price of a coin. In just four months, Bitcoin, unexpectedly for all, took off from $ 1 to $ 31.91.

Then, four days later, on June 12, 2011, it fell in price to $ 10.25, which was the first serious test for cryptocurrency. The situation was also aggravated by the first serious breach of security on the Mt.GOx cryptocurrency exchange on June 19, 2011. But despite this, February 9, 2011, many experts mark the beginning of the digital "gold rush" of our century!

Today, on its birthday, Bitcoin is also experiencing hard times. The high price volatilityVolatility
– is a financial term that means a statistical indicator of price change. In the cryptocurrency world, it is used by traders as an indicator for managing financial risks. That is, it is a measure of trade risk and as a financial analytical tool for gambling. Details
and the collapse of the cryptocurrency market in the last two months of 2018 have depleted the main cryptocurrency. But at the same time, many Bitcoin "pioneers" believe in its high prospects, in the final decentralization of the world financial market, and that over time the coin will find its place among the world financial sphere.

Editor: Yulia Krasnaya

See also: "TOP 5 of the most popular cryptocurrency in 2018"



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Fiat money, funds