Creation of Bitcoin

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Basic Definition of Bitcoin

Bitcoin, a decentralized digital currency system was created in 2009. Bitcoin is a cryptocurrency that uses peer-to-peer technology for its transactions and the Bitcoin community manages Bitcoin Era through open-source software. It was invented by Satoshi Nakamoto but it still remains a mystery who this name stands for.

Creation of Bitcoin

In January 2009 Satoshi Nakamoto released the Bitcoin v0.1 onto Sourceforge with bugs being found and reported which were then fixed by the programmers of the team. In January 2009 Marc Andreessen held a conversation about Bitcoin on IRC which included many important figures in cryptology such as Hal Finney and cryptographer Nick Szabo. Then in February an exchange rate between Bitcoin and USD had been set up by New Liberty Standard.

Rising Trends of Bitcoin

As Bitcoin begins to be recognized by more and more people, Bitcoin reaches soaring heights of popularity when in late 2009 an article was submitted to Slashdot which led to the Bitcoin forum being flooded with requests for Bitcoin. On March 15th Bitcoin reached parity with the US dollar at USD1 = 1BTC. Later in October Bitcoin took another step towards mainstream use when major Bitcoin exchange MtGox was started by owner Jed McCaleb. This allowed many new members into the Bitcoin community. The price then rose past $1 to a new exchange rate high of $31 in June 2011 before settling at around $2 for this year 2013.

Bitcoin’s Price

On February 28th, 2012 Bitcoin reached a record high of over 31 dollars bitcoin but collapsed almost immediately afterward. Bitcoin has since gone up exponentially, reaching $67.50 on November 5th, 2012. Bitcoin is not limited to computer programmers and cryptology enthusiasts however, Back in May it was reported that Bitcoin will become available through ATMs starting August 1st, 2012.

Bitcoin -Independent from Central Intermediaries

Bitcoin has no central authority or server used for the transactions but rather uses peer-to-peer technology with a public ledger called the Blockchain which records all Bitcoin transactions. Bitcoin can be mined for using your PC's CPU power in order to process Bitcoin transactions which are then recorded into the public ledger. The sender of bitcoins does not have to be online, you can print out your own bitcoins at home too! However, if you do plan on earning some Bitcoins by printing them out make sure you invest first because Bitcoin has not been declared illegal but is criticised for being a vehicle for illicit transactions. Bitcoin can be used to purchase just about anything from pizza to domain names and even items on the deep web!

Anonyms Nature of Bitcoin

Bitcoin is thought of as an anonymous payment system due to its lack of regulation and decentralised nature. Bitcoin also eliminates all third parties and banking institutions required for online transactions. Bitcoin was created in order to avoid inflation and decrease governmental control over currency, Bitcoin now accounts for an $800 million dollar market cap since Bitcoin cannot be inflated like conventional currencies such as the dollar or Euro. Some vendors actually prefer Bitcoin compared to conventional methods such as Visa which often charge fees as high as 3% per transaction.

As Bitcoin gets more popular mainstream vendors will need to take Bitcoin in order for Bitcoin to continue its rise into the mainstream. Bitcoin ATMs have been in Canada this year and a Bitcoin kiosk made in Texas accepts Bitcoin from anywhere in the world. Bitcoin is being investigated by many countries alike due to concerns of money laundering, tax evasion, and fraud. Despite all this Bitcoin still has plenty of room to grow as Bitcoin is currently worth well over $100 per Bitcoin!

Future of Bitcoin

The future of bitcoin is yet to be determined. But it is becoming the belief of many people that sooner or later, bitcoin will be the future.

Bitcoin has already become mainstream and one of the most discussed topics on TV shows, conferences, podcasts, etc. People who didn't know anything about cryptocurrency in 2009 are now buying their first bitcoins or fractions thereof. And still many people don't know what it is all about, but they will find out soon enough as more and more companies accept bitcoin payments every day.

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