Bitcoin, now considered to be the poster child of cryptocurrencies, was first founded in the fall of 2008 when a white paper detailing its workings and operations which was later released as open-source software in 2009. This white paper was published by an entity pertaining to the username of Satoshi Nakamoto, the anonymous programmer or cohort responsible for the inception of Bitcoin.
Nakamoto collaborated with a number of open-source developers on Bitcoin up until 2010. Nakamoto has since been inactive, transferring the control to prominent Bitcoin developers. There have been a number of theories and claims concerning the real identity of Satoshi Nakamoto, however, none of them have yet been confirmed.
Regardless of the confusion and curiosity behind his identity, Nakamoto created an extraordinary peer-to-peer payment system with the help of Blockchain technology. This system enabled its users to send Bitcoins, the value transfer token, directly without the need or interference of a third party such as the government or the banks. In fact, the network itself acts as the intermediary by constantly verifying transactions on its own and ensuring that no one tries to cheat the system by spending the same bitcoin twice.
The creator’s goal with Bitcoin and blockchain technology was to close a huge hole that existed in digital trust: the Byzantine fault. The Byzantine fault or the general’s problem is the ultimate digital problem that concerns: how do you trust the information provided to you by the system and the parties behind it when you can easily be deceived?
Many Bitcoin supporters and enthusiasts are certain that blockchain technology is the missing piece that will enable people to operate entirely online. Blockchain technology reframes trust by recording all relevant information in a public ledger that cannot be removed or altered.
In January of 2009, Hal Finney received 10 bitcoins from Nakamoto. However, at this point, bitcoin’s worth was almost negligible. The first “real” transaction took place on May 22nd, 2010, when Laszlo Hanyecz bought two pizzas from Papa Johns for 10,000 bitcoins. The day is now celebrated as “Bitcoin Pizza Day.”
After that, bitcoin slowly but surely started rising and recorded a meteoric rise in value in 2007. Even though its price plummeted soon after, Bitcoin was able to secure an important position among many investors.
Since its inception, Bitcoin has come a long way and been successful in gaining significant traction. Today is a hot topic and there have been many factors that have driven the growth of bitcoin into such a widely used digital currency. Its decentralized, transparent nature along with its inflation-resistant properties have pushed the narrative of bitcoin further.
The involvement of large institutional investors has intrigued many skeptics. Also, the availability of trading bots such as the bitcoin system app has made trading easier, increasing its popularity.
Today, Bitcoin values at approximately $31,000, and the debate over its future is as heated as ever.