The History Of Bitcoins

The growing market value of the Bitcoins, which is approximately $8000, as of April 2018, is urging anyone and everyone to secure them as much as possible through a number of possible and profitable means like the algorithmic trading practice. Although it’s a good intention, knowing the history of Bitcoins would not only make us knowledgeable but also make us more appreciable when it comes to the Bitcoins and that is why we are here to delve deeper into its history!

  • The birth of Bitcoins

The year 2009 marks the birth of the Bitcoins, with its genesis block being mined at January 3, 2009, by the anonymous founder Satoshi Nakamoto. Yes, although the Bitcoin project gets registered on the website called Sorceforge.net, which facilitates the distribution and development of open source software in the year November 2008, not until January 2009, the significant process aka mining of the Bitcoins started and therefore, this year can be very well considered as the birth of the Bitcoins!

  • The first transaction

The 170th block of the Bitcoins gets that coveted ‘First-Ever Bitcoin To Be Transacted’ title, where the transaction happened was between the founder, Satoshi Nakamoto and Hal Finney, a cryptographic activist and as well as a developer! This historic Bitcoin transaction took place on January 12, 2009, a week after the mining of the genesis block!

  • The first exchange rate

On October 5, 2009, the first-ever exchange rate for the Bitcoins was published by New Liberty Standard that set the value at 1$ = 1309.03 BTC! To generate this value, the concern followed an equation that includes the cost of electricity incurred by a computer generating the Bitcoins!

  • The first-ever real-world transaction

We have already seen the first-ever transaction happened using the Bitcoins, which was before they were known to the real public. So, after the world started to know the existence of these amazing digital coins, the first-ever real-world transaction using them happened in the year 2010 that too to purchase two Papa John’s Pizza! The man behind this famous transaction, Laszlo Hanyecz, who is a programmer based out of Jacksonville Florida, decided to swap the 10,000 Bitcoins for mere two pizzas. The then value of these Bitcoins were only $25 but, now, had he safeguarded it he could certainly be a Billionaire!

  • The first-ever $1 million market cap position

The market cap value of the Bitcoins, which is calculated by multiplying the number of Bitcoins in circulation with the last traded market value, here the value at MtGox, reached $1 million, in fact, exceeded that value for the first time on November 6, 2010.