Bitcoin Currency History – Where It All Started

Bitcoin Currency History

 

From the beginning, Bitcoin currency history was a mystery.   In 2008, someone using the alias Satoshi Nakamoto published a paper to a cryptography mailing list. It was called Bitcoin: A Peer-to-Peer Electronic Cash System.

In January 2009, the Bitcoin network emerged when Nakamoto dismantled the first block of the chain, the so-called Genesis block. The following text was embedded in the coin basis of this block: “The Times 03 / Jan / 2009 Chancellor on the verge of the second bailout for banks.” This note was interpreted both as a timestamp and as a commentary on the instability of fractional reserve banking.

Recipient of the first Bitcoin transaction was Cypherpunk Hal Finney, who developed the first reusable proof-of-work (RPOW) system in 2004. Finney downloaded the Bitcoin software at the time of its release and received 10 Bitcoins from Nakamoto on January 12, 2009. Other early Cypherpunk followers were creators of Bitcoin predecessors: Wei Dai, creator of b-money, and Nick Szabo, creator of bit gold. In 2010, the first known commercial transaction with Bitcoin took place when the programmer Laszlo Hanyecz bought two Papa John’s pizzas for 10,000 Bitcoin.

It is estimated that Nakamoto mined one million bitcoins before disappearing in 2010 when he handed the network alert key and control over the code repository to Gavin Andresen. Andresen later became a senior developer at the Bitcoin Foundation. Andresen then tried to decentralize control. This provided an opportunity for controversy over Bitcoin network future development path.

After early proof-of-concept transactions, Bitcoin’s first big users were black markets like the Silk Road. In the 30 months of its existence, starting in February 2011, Silk Road only accepted bitcoins as payment and handled 9.9 million bitcoins worth about $ 214 million. Bitcoin currency history continues to grow over the year.

In 2011, the price started at $ 0.30 per Bitcoin and rose to $ 5.27 for the year. The price rose to $ 31.50 on June 8th. Within a month, the price fell to $ 11.00. The next month, it fell to $ 7.80 and another month to $ 4.77.

Bitcoin Currency History In 2012, bitcoin prices started at $ 5.27 and rose to $ 13.30 for the year. By 9 January, the price had risen to $ 7.38 but then plunged 49% to $ 3.80 over the next 16 days. The price then rose to $ 16.41 on the 17th but fell 57% to $ 7.10 over the next three days.

In March 2013, the Blockchain temporarily split into two independent chains with different rules. The two block chains worked simultaneously for six hours, each with its own version of the transaction history. Normal operation was restored when most of the network was downgraded to version 0.7 of Bitcoin software.

The Mt. Gox Exchange temporarily stopped Bitcoin deposits and the price dropped 23% to $ 37 before rebounding to an earlier level of around $ 48 in the following hours. The US Financial Crimes Enforcement Network (FinCEN) has established “decentralized virtual currency” regulatory guidelines such as Bitcoin, which classify American Bitcoin miners who sell their generated bitcoins as Money Service Businesses (MSBs), registration or other legal obligations subject.

In April, the BitInstant and Mt. Gox exchanges experienced processing delays due to insufficient capacity, causing the Bitcoin price to fall from $ 266 to $ 76 before recovering within six hours Returned $ 160. The Bitcoin price rose to $ 259 on April 10, but then dropped 83% to $ 45 over the next three days. On May 15, 2013, the US authorities seized accounts related to Mt. Gox after finding that they were not registered as money senders to FinCEN in the United States.

On June 23, 2013, the US Drug Enforcement Administration (DEA) has issued 11.02 Bitcoins as confiscated assets in a seizure notice from the United States Department of Justice under 21 U.S.C. § 881 listed.

This was the first time a government agency had confiscated Bitcoin. In October 2013, the FBI seized about 26,000 bitcoins from the dark Silk Road site during the arrest of Ross William Ulbricht. The price of Bitcoin rose to $ 755 on November 19 and collapsed on the same day by 50% to $ 378. On November 30, 2013, the price reached $ 1,163 before starting a long-term crash and fell 87% to $ 152 in January 2015.

On December 5, 2013, the People’s Bank of China banned Chinese financial institutions from using bitcoins. After the announcement, the value of bitcoins dropped, and Baidu stopped accepting bitcoins for certain services. The purchase of real goods with every virtual currency has been illegal in China since at least 2009. In 2014, prices started at $ 770 and fell to $ 314 for the year.

Bitcoin Currency History In February 2014, the Mt. Gox Exchange, the largest Bitcoin exchange at the time, announced that 850,000 Bitcoins had been stolen by its customers, which is close to $ 500 million. The price of Bitcoin dropped by almost half from $ 867 to $ 439 (a 49% drop). Prices remained low until the end of 2016.

In 2015, prices started at $ 314 and rose to $ 434 for the year. In 2016, prices rose to $ 998 on January 1, 2017. Prices started at $ 998 in 2017 and rose to $ 13,412.44 on January 1, 2018. On December 17, the price of bitcoin reached an all-time high of $ 19,666.

Bitcoin prices then dropped from $ 9,052 to $ 6,914 on February 5, 2018. Renminbi Bitcoin trading dropped from over 90% in September 2017 to less than 1% in June. In the further course of the first half of 2018, the price of bitcoin fluctuated between 11,480 and 5,848 US dollars. On July 1, 2018, the price of Bitcoin was $ 6,469.

Bitcoin prices were negatively impacted by multiple hacks or thefts of cryptocurrency exchanges, including Coincheck theft in January 2018, Coinrail and Bithumb in June, and Bancor in July. For the first six months of 2018, $ 761 million worth of cryptocurrencies were reported stolen on stock exchanges. The price of Bitcoin was affected, although Coinrail and Bancor stole other cryptocurrencies as investors worried about the security of the cryptocurrency exchanges. As of today Bitcoin currency history is still in the making and will continually develop in years to come.