Bitcoin software is made available to the public for the first time. The transactions are recorded and verified on the blockchain. The first ever Bitcoin transaction occurred between Satoshi and Hal Finney, a developer and cryptographic supporter. Satoshi Nakamoto, or someone working under that alias, allegedly started the bitcoin concept, or so the legend goes. In 2008, Satoshi Nakamoto published a paper, which outlines the concept of the bitcoin. Most notably this paper addresses the problem of double spending, so as to avoid the currency being copied and spent twice.
– The Legend of Satoshi Nakamoto
- Further bad press this same year, which suggested it could be used to fund terrorist groups did little to increase its popularity.
- Most notably this paper addresses the problem of double spending, so as to avoid the currency being copied and spent twice.
- 25% of the projected total of 21 million bitcoins have now been mined.
By June of the same year each bitcoin was worth $31 each, which meant the total market cap reached $206 million. 25% of the projected total of 21 million bitcoins have now been mined. Encrypted currencies in general were starting to catch on around now and alternatives were appearing, such as Litecoin. Each virtual currency tries to improve on the original Bitcoin. This year was characterised by growing understanding and desire to regulate bitcoin.
– Mt.Gox disappears along with 850,000 bitcoins
This was an essential foundation brick, that allowed Bitcoin to expand where other attempts at cryptocurrencies had failed. One of the biggest trade crazes a brief history of bitcoin in 10 years of 2017, Bitcoin and cryptoculture is a young profit-making hobby turned job for many. Below, Finance Monthly hears from trusted cryptocurrency expert, Fiona Cincotta, Senior Market Analyst at City Index, on the past 10 years of Bitcoin.
A Brief History of Bitcoin in 10 Years
Bitcoin saw an annual gain of 54%, outperforming all fiat currencies. This was the year that the bitcoin really started to establish itself and provided holders of the currency various ways to generate a return or indeed use the currency. It was seen as a safe haven from traditional assets in a year of Brexit, Trump winning Presidency, the continued rise of ISIS and the refugee crisis in Europe. Later that year bitcoin was hacked, drawing attention to its principal weaknesses; security. Bitcoin had been trading at around $1, prior to the hack, which then sent the value through the floor. Further bad press this same year, which suggested it could be used to fund terrorist groups did little to increase its popularity.
- Despite the futures contracts providing ability to short bitcoin, the value of the cryptocurrency hits an all time high.
- Bitcoin software is made available to the public for the first time.
- One of the biggest trade crazes of 2017, Bitcoin and cryptoculture is a young profit-making hobby turned job for many.
- The same year US released the Bit License – proposed rules and guidelines for regulating virtual currencies.
– The Legend of Satoshi Nakamoto
The value of bitcoin jumped from $997 to over $19,661 and its popularity has soared exponentially. The currency went mainstream as it became listed on two futures exchanges CBOE and CME. The listing of Bitcoin Future contracts on these exchanges has boosted the legitimacy of bitcoin and made it more widely available. Despite the futures contracts providing ability to short bitcoin, the value of the cryptocurrency hits an all time high.
Not surprising after the world’s largest bitcoin exchange Mt.Gox suddenly went offline and 850,000 bitcoins were never seen again. Whilst there is still no answer to what happened to those Bitcoins, valued at the time at $450 million, at today’s value those coins would be worth $4.4 billion. The same year US released the Bit License – proposed rules and guidelines for regulating virtual currencies.