Full History of Bitcoin: Founder, 1st Transaction, Initial Value, Availability, More
Know The Bitcoin History From Beginning
Among several other investment assets, Bitcoin has had a real volatile history since its launch. This digital currency had its humble beginning back in 2008 and saw its peak in 2017.
In just a decade, it has seen a fall and a rise in its value. In this comprehensive Bitcoin tutorial for beginners, let’s know about the full history of Bitcoin and who invented Bitcoin.
Who is Founder of Bitcoin?
The idea of Bitcoin came into existence on October 31, 2008. Satoshi Nakamoto is called the inventor of Bitcoin. It is said that he was going through a financial crisis when he started the concept of Bitcoin.
He had posted a message on the cryptography mailing list titled ‘Bitcoin P2P e-cash paper’. It had a link to the ‘Bitcoin: A Peer-to-Peer Electronic Cash System’ whitepaper. These are available online.
In this whitepaper, Nakamoto detailed the concept of Bitcoin as a digital currency that is completely decentralized, meaning it has no controlling power.
First Bitcoin Transaction
It was January 3, 2009, when the first blockchain was instituted when the genesis block (the first block) was mined. And, the first transaction took place a week later.
For the first few months of Bitcoin introduction, the Bitcoins were obtainable only by miners as they validated the Bitcoin blockchain.
The Value of Bitcoin During First Economical Transaction
The first economic transaction took place a year later when a man in Florida negotiated Bitcoins for two Papa-John’s pizzas.
Being valued at $25, these pizzas were delivered at the cost of 10,000 Bitcoins on May 22, 2010. As a result, this Bitcoin experienced its first real-world value or price at 4 Bitcoins for every penny. Fast-forwarding to today, the same transaction would have cost about $114 million.
"In the early days, the first transactions with Bitcoin were 'negotiated' on internet forums with people bartering for goods and services in exchange for Bitcoin," says Garrette Furo, partner at Wilshire Phoenix, a New York-based investment management firm. "The value of Bitcoin was originally arbitrary."
Later in 2011, Bitcoin miners and coders began building other networks like Litecoin and Ethereum. It improved the codes behind Bitcoin blockchains, making them adaptable for different purposes.
Availability of Bitcoin on Cryptocurrency Exchange
As an increased number of people and businesses started accepting Bitcoins, this led to an increase in the value of Bitcoins alongside the traditional currencies.
Once Bitcoin was available on exchange to a wider audience in 2010, this made buying, selling, trading, and storing currencies easier.
Massive Growth of Bitcoin Value
In 2021, Bitcoin only took a month for them to smash its previous 2020 price record. And, by mid-April, the Bitcoin prices reached their new heights with $60,000 as Coinbase (a cryptocurrency) went public.
As further interests in the market propelled, the worth or value of Bitcoin amplified to more than $63,000 in April 2021.
The Current Value of Bitcoin
By the summer of 2021, the prices saw a fall by 50%, hitting lows like $29,795.55 on July 19. In autumn months, since September, the Bitcoins experienced a hike and were valued at $52,693.32 but just two weeks later, it came down to $40,709.59.
Test your knowledge with a quick quiz!
The idea of Bitcoin came into existence on ____ .
Select the correct answer