Bitcoin recently reached its 15th-year milestone. While it now boasts a trading value exceeding $41,500 per unit on international crypto exchanges, its early years were less distinguished. This occasion commemorates the genesis block, the foundational element of Bitcoin’s transformative journey that challenged conventional views on currency.
By introducing a decentralised and secure financial paradigm, Bitcoin’s decade and a half have not only marked the passage of time but have also played a pivotal role in shaping the course of cryptocurrencies.
Bitcoin was introduced in a 2008 white paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” by an individual or group of people using the pseudonym Satoshi Nakamoto. The white paper outlined the principles and mechanisms of a decentralized digital currency system.
Bitcoin officially came into existence on January 3, 2009, when Nakamoto mined the first block of the Bitcoin blockchain, known as the “genesis block” or “Block 0.” The release of the open-source software allowed others to participate in the network.
Here are some key facts about Bitcoin:
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The first recorded transaction using bitcoins occurred on May 22, 2010, when 10,000 bitcoins were used to purchase two pizzas from Papa John’s. This event is now celebrated annually in the crypto community as “Bitcoin Pizza Day.”
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It took three years and ten months from its creation in January 2009 for the price of Bitcoin to reach $1,000 for the first time.
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On January 10, 2024, the U.S. Securities and Exchange Commission (SEC) gave approval for a spot Bitcoin ETF, leading to a significant influx of investment totaling $4.6 billion within a couple of days.
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The total supply of bitcoins is capped at 21 million, a design choice intended to mimic the scarcity of precious metals like gold.
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Bitcoin undergoes a process known as “halving” approximately every four years, during which the reward for miners is reduced by 50%. This mechanism is designed to control the rate of new bitcoin creation, creating scarcity and influencing its value.
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The terms “blockchain” and “cryptocurrency” were not used in the original Bitcoin white paper. Instead, Satoshi Nakamoto referred to the blockchain as a “timestamp server.”
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Satoshi Nakamoto considered naming Bitcoin as ‘electronic cash’ or ‘netcoin’ before settling on the name ‘Bitcoin.’ Early emails suggest that the term ‘electronic cash’ was used in the initial references to the cryptocurrency.
Before Bitcoin, there were attempts at creating digital cash technologies, including David Chaum’s e-cash in the 1980s and Hal Finney’s development of the first currency based on reusable proof-of-work in 2004. However, these early attempts were not successful.
Since the creation of Bitcoin, numerous other cryptocurrencies (often referred to as altcoins) have been developed, each with its own unique features and purposes. Bitcoin, however, remains the most well-known and widely used cryptocurrency.
