August 20, 2022

When was bitcoin introduced

Introduction

This is a pretty complex topic but with a relatively simple explanation. In the late 90’s the Web started to take over the world and it started the evolution of a completely new form of commerce. The first way to buy something on the web was with a credit card. However, in October of 2009 a person or company by the name of Satoshi Nakamoto/real name unknown, created a piece of software (as simple as it sounds) that allowed people to send money directly to each other without using a bank or a company that would charge you big fees. This was based on an experiment called a digital currency. The first digital currency was created in a lab environment called lab-1 and was called NBF. NBF was the first digital currency that didn’t have a monetary value. It was just an experiment to see what would happen if people sent money to each other using code. In April of 2010 Satoshi posted a paper on the paper called – Bitcoin: A Peer to Peer Electronic Cash System” and the rest is history.

About 4 years later, in November of 2014, the first exchange by the name of Mt. Gox, was created and peaked around a quarter million dollars of bitcoins. This exchange was very successful and was one of the biggest and earliest venues for selling and trading crypto-currencies. The SEC quickly stopped trading in Bitcoin and Alt-coins and Mt. Gox filed for bankruptcy because of criminal activity. When the Mt. Gox seizure of assets took place, its said that Bitcoin had a worth of about $5.7 Billion dollars. Mt. Gox was the biggest exchange from 2011-2014.

In February of 2017, Bitcoin reached an all-time high when it was trading over $19K dollars per coin. After this high, Bitcoin suffered a drop and fell under $3k. However, this year, due to the problems with accepting cryptocurrency, Bitcoin has dropped and has only been trading around $3,000 per coin.
What is Bitcoin?

Bitcoin is a form of digital currency that is made entirely by code. It uses blockchain technology to protect and create the bitcoin.

How Does Bitcoin Work?
Bitcoin is mined. Mining is the process of verifying bitcoin transactions to add a block into the blockchain which adds a transaction log. This process is run every 10 minutes and computers do this by solving a difficult mathematical problem. The person who has solved this problem and added the block to the chain is