Today there are many platforms where you can trade cryptocurrencies or even purchase goods and services using cryptocurrencies. However, this reality probably would have happened if it wasn't for Bitcoin. The digital cryptocurrency that has shaken the global financial world and created space for other cryptocurrencies. But still, a lot of people even today are confused about what is bitcoin and how it became one of the most important technological innovations? Here we explore the history of bitcoin and important facts that everyone should know about the cryptocurrency.

The Origin of Bitcoin

The origin of bitcoin is still shrouded in mystery. Satoshi Nakomoto first used the term bitcoin in a white paper called Bitcoin: A Peer-to-Peer Electronic Cash System. No one knows who Satoshi Nakomoto is, although there has been a lot of speculation in the media regarding their identity. Bitocin.org was registered in 2008, shortly after Satoshi has sent the famous white paper to a mailing list of cryptocurrency enthusiasts and early adopters of BTC.

The whitepaper explained in more detail the foundation of the decentralized, peer-to-peer cash system, or as it's known today, blockchain will operate. It also provided answers to potentially detrimental problems like double-spending.

One of the reasons why bitcoin was able to prosper in contrast to other digital cryptocurrencies is the blockchain network. Here it should be noted that the very existence of bitcoin is in a way connected to the global financial crisis that was in full swing in 2008. So, the blockchain network, which is defined as a distributed public ledger and, most importantly, processes transactions without a financial institution, is definitely one of the factors that impacted the inception of bitcoin.

The First Transaction and Exchange Rate

The first transaction is completed between Satoshi Nakamoto to Hal Finney when Satoshi sent 50 BTC to Hal. Otherwise, the first real-world transaction took place on May 22, 2010, when Laszlo Hanyecz has bought two pizzas from Papa John's for 10,000 BTC. Today May 22, is celebrated as Bitcoin Pizza Day. Here it's should be mentioned that the exchange rate for BTC was set to for 1,300 BTC or the cost of electricity to mine BTC.

Online Trading

As we mentioned before now, there are many online platforms where you can get BTC exchange BTC for other cryptocurrencies or fiat currencies. Furthermore, there are many apps and trading platforms suitable for beginners like the Bitcoin Code app that uses Artificial Intelligence to spot Bitcoin trading opportunities. But also it offers detailed instructions for their members to help them start trading. Another perk of being a member is that you only need to deposit 0 to register while you can potentially obtain up to million in less than a year.

However, before the rise of online trading with BTC, there were a couple of noteworthy trading platforms. First, BTC was obtained on various forums, but this made a lot of transactions problematic because there were also a lot of scammers. Moreover, an online exchange platform would help to establish the real-time exchange rate of Bitcoin against a fiat currency like the dollar.

Hence, there was a real need for an official trading platform. That being said, Bitcoinmarket.com was launched in March 2010 and become a go-to platform for most bitcoin transactions. But, due to many problems with the platform, it eventually crashed. Another platform was launched in 2011, called Mt. Gox. By 2014, 70% of all BTC trades worldwide took place on Mt. Gox. Unfortunately, multiple security issues prompted the downfall of Mt. Gox, and it declared bankruptcy in February 2014.

Bitcoin Halving

Bitcoin halving is an important event that takes place roughly every four years, or when the number of blocks hits 630,000. Satoshi Nakamoto limited the supply of BTC to 21 million, while the reward the miners is split every four years. Because the supply of BTC is limited, and already 18.5 million bitcoin is mined, the price of bitcoin rises, with every halving, as the demand for BTC increases.

Actually, the first time that the halving occurred was in November 2012, and the price of Bitcoin has risen and reached , while the reward that the miners get was decreased to 25 BTC. On the next halving, the price reached 4.44. What's more, when the latest halving occurred in May 2020, the price of BTC has risen from ,500 to ,500.

Conclusion

Today we still don't know the identity of Satoshi Nakomoto, but we do know that bitcoin is one of the biggest cryptocurrencies and has become the digital gold of our time. You can purchase everything from real estate to cars, while governments around the world are looking to invest in BTC. So, it’s no wonder that many people are looking to obtain BTC today.

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