Index

The History of Bitcoin

Before getting involved in the Bitcoin matter as such, it is markedly necessary to define a keyword wich is the fundamental basis of bitcoin: The Cryptocoin.

The Cryptocoin is defined as “A Digital media of Exchange 1¤7, and that is basically what it is, since cryptocoins are designed to work digitally without any value of currency bill so far. Initially when the bitcoin was launched, it was the only one around, and today it is about the only cryptocoin that has been established as a common way of payment.

The huge advantage of the cryptocoin over a common coin is that they are not ruled by a country so they are not restricted to the economy of that region but are managed by a large number of people who mantain The Cryptocoin Network.

Now with this knowledge, we can start to talk about The Bitcoin as such. Its founder (or founders) known as Satoshi Nakamoto, was the one who designed the protocol used by the Bitcoin and its kernel called The Bitcoin core. By the year 2008, Mr. Nakamoto released an article describing all the protocols required for Cryptocoin transactions, which are better known for being a P2P Protocol. Subsequently by the year 2009, Mr. Nakamoto inaugurates The Bitcoin materializing of course, the P2P Exchange Network previously mentioned, and creating what they turned into the first units of Cryptocoin called Bitcoins.

The person or persons known as Satoshi Nakamoto only colaborated with Bitcoin until 2010, after that the control of all the network was given to Gavin Andresen and to another notable people that were part of the Bitcoin community.

The first transaction ever made for a purchase using bitcois was in 2010, when just one person spent 10,000 bitcoins to buy two pizzas. By that time, the bitcoin value was 1 BTC per 0,003 dollars. These days, those two pizzas would cost around 10 million of dollars.

Precisely in that year, it emerged the first and unique vulnerability known for the bitcoin protocol in wich an undefined number of criptocoin units could have been created for any transaction. It’s on the 15th of August when this network problem was discovered due to a transaction for 184 thousand millions of bitcoins, wich it surely raised suspicion and allowed to find out this network hole and fix it. Since then, there haven’t been any reports about some other serious trouble in the Bitcoin network.

By the year 2011, Silk Road was created and it was a black market designed for illegal activities where bitcoins were used. Luckily, it was closed by the FBI who had got around 26.000 BTCs valued in 3.6 millions of dollars for the date.

Incredible gains and losses of money have been ocurred from the arriving of this cryptocoin, and it’s difficult to give a prediction about something relatively new and young . The most accurate thing to do is to keep eyes open for Bitcoin transactions.