Bitcoin’s anonymous creator, Satoshi Nakamoto, launched the first customer network today 12 years ago and officially launched what is arguably the biggest monetary revolution of the 21st century.
Six days ago, on January 3, 2009, the Satoshi Genesis block known as No. 0, mined and encoded it into the program. Unlike the following blocks in the chain, the coin reward from the Genesis block cannot be used as only the “coins” recovered as a whole can be transferred. Thus, the first block, or # 1, was mined on January 9th and marked the true beginning of the network as it is known today.
At the time, Satoshi announced the news of the cryptocurrency mailing list with a link to download Bitcoin 0.1.0 on the open source Sourceforge database platform.
Bitcoin 0.1.0 was only compatible with Windows. The first client release with Linux support only appeared in December 2009 with the release of Bitcoin 0.2.0.
Less than a week before the launch of the first client program, Satoshi expanded the Genesis block and launched the network. Hal Finney received his first BTC transaction on January 12, 2009.
At that time, early adopters were already exploiting the potential to create monetary value through computing power. In Finney’s words, “Being able to make coins today for spending a few cents of estimated time can be a good endeavor.”
Programmers and crypto enthusiasts predict that Bitcoin could achieve global reserve currency status of up to $ 10 million per coin. Satoshi agreed with Finney’s optimistic prediction, adding, “It might make sense to have some if they are found.”
However, Bitcoin (BTC) did not receive its first official valuation until October 2009. At the time, New Liberty Standard, one of the first BTC exchanges, set a reference price for bitcoin, which was set at 1,309 BTC at $ 1.
Pizza, WikiLeaks and Satoshi Products
Early miners adopted Bitcoin as the network is still in its infancy. Some even use bitcoin faucets to help increase BTC penetration on a larger scale.
In May 2010, Laszlo Hanets permanently cemented his place in bitcoin folklore and paid 10,000 bitcoins for a pizza, which is considered the first “real” Bitcoin transaction.
WikiLeaks, cut off from funding sources, switched to Bitcoin and urged some of Julian Assange’s early adopters to consider switching to BTC. Satoshi Assange warned of the action and said linking to WikiLeaks could unnecessarily heat up a promising project.
In fact, Satoshi’s address to Assange was one of the last digital messages from the creator of bitcoin before it completely disappeared from the scene.
The Silk Road and the expansion of mining
In 2011, Bitcoin seemed to have gone from a completely egregious problem to anarchists and free market advocates. The Silk Road, a closed dark market, has morphed into BTC as a routine payment method for drug trafficking and other illicit drugs.
In terms of the market, Bitcoin claims the price is $ 1 as interest begins to spread to the broader technology community. Bitcoin was priced at $ 30 in mid-2011, but stealing 25,000 BTC from a slushpool user account caused a colossal collapse in prices.
Bitcoin mining also evolved as personal computers could no longer provide enough hash power to secure the expanding network. Field Programmable GPUs and Gateway Arrays now enable more efficient Bitcoin mining.
Mountain. Gox, technology adoption and cryptocurrency
In 2010, Stellar founder Jed McCaleb founded Mt. Gox bitcoin exchange. Fast forward to 2013 and this platform accounts for over 70% of the world’s BTC trade. Mountain. Gox seemed too big to fail, but in reality it failed when hackers stole around 850,000 BTC between 2011 and 2014. The theft news triggered another major crash in bitcoin prices.
Meanwhile, the spread of the technology has increased, leading to products like BTC storage devices or Elliptic. American cryptocurrency exchange giant Coinbase has also hit the scene and raised $ 25 million in funding.
Regarding regulation, the period from 2013 to 2014 was the beginning of the awareness of many governments about Bitcoin. China’s central bank has prevented banks from facilitating bitcoin transactions, while the US government sold around 29,000 bitcoins confiscated from Silk Road operators.