Bitcoin is regarded as the world’s largest multinational cryptocurrency, yet its origins remain shrouded in mystery. The tumultuous journey that Bitcoin has been on is considered to have paved the way for the hundreds of other cryptocurrencies that exist today. Here we will see the answer to the question ‘When was Bitcoin founded?’
Bitcoin was released to the public in 2009, but its roots date back to a much earlier period. The technology that it works on existed for a long time before its creation. In this article, we will dive deeper into the history of Bitcoin.
How does Bitcoin work?
Bitcoin is a type of money that is completely digital and virtual. Each transaction made with Bitcoins is recorded in a public list that is called blockchain. This bars anyone from making copies or selling counterfeit Bitcoins. The advantage to Bitcoin over using cash to make transactions is the fact that there is no governing body when it comes to Bitcoin. When it comes to hard money, it is controlled by the Government or a bank. Although the transactions remain public, if your account number is anonymous, your identity can be protected.
The history of Bitcoin – A timeline.
Prior to the creation of Bitcoin, there were several other attempts at creating a global cryptocurrency. Finance experts brainstormed and ideated the creation of several coins like DigiCash, B-Money, and BitGold. However, these cryptos either stopped at their early stages or failed to come to fruition.
Then in 2008, a digital enigma who goes by the name Satoshi Nakamoto published a paper for the world to see. Soon after that, in 2009, the first few Bitcoins were mined, and the blockchain they were listening on was called the “Genesis Block.” The Bitcoin software was released to the public a few days after that, and Nakamoto made the first test transaction of 10 Bitcoins to a computer programmer and developer, Hal Finney.
Bitcoin did not have any monetary value for a while and was of no use to the economy. However, towards the end of 2009, 1,309.03 Bitcoins were valued at 1 US dollar. In 2010, the first real-world transaction of Bitcoin took place in Florida, where a man bought two pizzas worth 25 USD for 10,000 Bitcoin. Factoring in today’s value of Bitcoin, he bought two pizzas for about 500 million US dollars.
February 2011 was a milestone for Bitcoin, as it broke the threshold, and was valued at 1 dollar for 1 Bitcoin. Soon, competitors started emerging in the market, and today, there are over 4,000 cryptocurrencies, with new ones being created every day. Today, the value of Bitcoin is at a staggering 46,756.30 USD.
Who was the founder of Bitcoin?
The real identity of the founder of Bitcoin remains unknown to this day. He goes by his online alias – Satoshi Nakamoto. There has been speculation of the person’s identity, about how he could be an individual or a team, but none of it is confirmed. The “Father of Bitcoin” emerged from the shadows in 2008, only to go back into hiding 3 years later, in 2011. He bid farewell to Bitcoin, believing that it had developed enough to work on its own. In 2008, he sent out an academic paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” He mailed it to a list of cryptography experts and enthusiasts and explained the concept of Bitcoin and its workings.
It is said that Nakamoto owns 1 million Bitcoin, which is 5% of the world’s reserves, valued at around 50 billion dollars. With that much Bitcoin, he has the power to choose to sell his coins at any moment and change the value drastically at any moment.
Conclusion
Since its conception in 2008, Bitcoin has grown a lot to become a globally traded and recognized currency. It is still illegal in many countries, but its usage is being generalized day by day. For example, PayPal allowed transactions with Bitcoin on their platform. Going by the current trend, Bitcoin is set to become much bigger than it is today, setting the precedent for various other cryptocurrencies too.
Frequently asked questions
1) How to earn Bitcoin?
Bitcoins can be earned primarily in 3 ways. First, you can buy Bitcoins using real money. Secondly, you can sell items in exchange for Bitcoins. Lastly, you can mine Bitcoins online. The person mining the coins processes everyone’s transactions and is rewarded Bitcoin in exchange for that. However, a highly advanced computer is necessary to mine these coins, and it could take years to mine even a single coin today. There are only 21 million Bitcoins in existence, which makes it harder and harder to acquire these coins by the day.
2) Is it good to invest in Bitcoin?
Bitcoin, much like other cryptocurrencies can be very volatile. Something as trivial as the tweets of the billionaire Elon Musk can visibly change the price of Bitcoin quite a bit. However, even with the ups and downs, over the years, Bitcoin has proved to be a good investment. From being valued at 1 dollar in 2011, exactly a decade later, in 2021, its value is over 40 times that. Overall, it is good to invest in Bitcoin.
