Bitcoin Highlights

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 2017-01-17 17:41:49

Bitcoin Highlights

Since the beginning, people were skeptical about Bitcoin, some of them still are. For any new technology that appears, people at first are retained about what it can offer, it is something normal. But let us take a look at how Bitcoin grew over time.

2008:

- A person named Satoshi Nakamoto published a paper, Bitcoin: A Peer-to-Peer Electronic Cash System. This document is known as the white paper of Bitcoin and it contains all the information about how Bitcoin works. Broadly, Satoshi Nakamoto revealed his idea of the future money. In his vision, he manages to solve the problem of money being copied, providing a vital form for Bitcoin to grow correctly. An interesting facts is that nobody really knows who is Satoshi Nakamoto, even there are lots of speculations in the media;

- Satoshi gathered a group of people in order to develop the idea behind Bitcoin;

2009:

- January 3, the first block is mined, known as the ‘Genesis Block’;

- Satoshi also made the first transaction ever on the blockchain in block number 170 sending 10 Bitcoins to Hal Finney (a developer and cryptographic activist);

- Despite the fact that the difficulty remained the same, the first exchange rate was established in October by The New Liberty Standard. The price was made based on a equation that included the cost of electricity to run the computer that created the Bitcoins: 1$ = 1 309,03 BTC. After only 2 months, the difficulty increases, people started to pay more attention;

2010:

- In February the first market exchange is born, established by Dwollar;

- 4 months later the first, real-word transaction using Bitcoins occurred: 10 000 Bitcoins for a pizza. At that time the exchange rate put the purchase price for the pizza at around $25;

- Within 10 months the price of Bitcoin spiked. However, a vulnerability in how the system verifies the value of Bitcoin is discovered, leading to the generation of 184 billion Bitcoins, as a result the price drops through the floor;

- Meantime, an inter-governmental group publishes a report on money laundering using Bitcoin, also suggesting that could help people to finance terrorist groups;

- After a few attempts to hack the system, it was released the Version 0.3.13 of Bitcoin with new improvements. The results of the improvements were seen a few months later: the market cap reached to $1 million (the price on MtGox reached $0.5/BTC) and the difficulty increased to 10 000 at the beginning of December;

2011:

- The new year brought a new Bitcoin marketplace: Silk Road, called the eBay of drugs;

- On the other hand, a few days later 25% of total Bitcoins are generated leading to another spike of Bitcoin price;

- In February Bitcoin reaches parity with US dollar for the first time. By June each Bitcoin is worth $31 with a total market cap of $206 million;

- However, a major theft takes place: 25 000 BTC were stolen from a digital wallet (equivalent of $375 000), causing the value of Bitcoin going to $0.01. In the same month, the difficulty passes 1 million;

2012:

- In February Bitcoin Magazine is officially launched containing articles about Bitcoin and cryptocurrency;

- A gambling website is launched: SatoshiDice which becomes responsible for more than 50% of the Bitcoin transaction volume;

- As more and more Bitcoin related businesses are appearing on the market, in July a Bitcoin startup incubator is launched named BoostVC;

- Bitcoin Foundation is formed in September implementing a development team for the protocol;

- November 28, 2011: the block reward is halved to 25 BTC;

2013:

- Version 0.8 of the Bitcoin client is released in February, improving download speeds. A few days later, the value of Bitcoin has reached $30 for the first time since 2011;

- On March, Bitcoin spikes to $74.90 increasing nearly 70%. Also the market cap reached $1 billion;

- The hype brought the value of Bitcoin to $266 and immediately a hack takes place on Bitcoin Central taking down the price of Bitcoin;

- The first Bitcoin ATM was placed in San Diego, California;

- In October FBI shuts down Silk Road, seizing $3.6 million worth of Bitcoins. The effects were felt on the market: Bitcoin price drops from $139 to $109.71 in less than three hours. It short time recovers to $128;

- Another major event occurs in November. The price of Bitcoin breaks record, reaching $269 and a few days later the price has doubled: $503.10;

- A document was published revealing that Bitcoin moved more money than Western Union;

- New record: Bitcoin price above $1000;

- By the end of the year, 96 000 Bitcoin are stole from Sheep Marketplace (another online drug site) while the internet watches the thief move the funds wallet to wallet;

- December 5: Bank of China bans Bitcoin transactions causing a price drop nearly to $500;

2014:

- Blockchain.info sees record numbers, passing 1 million wallets just at the beginning of the year;

- Apple bans all Bitcoin apps on their App Store;

- Silk Road 2.0 is hacked, more than 4000 BTC is lost taking down the Bitcoin price to $611 and a few months later dropping again to $467.26;

- Circle launches world’s first Bitcoin bank and in June the Bitcoin price climbs up to $666;

- Japan supports Bitcoin, therefore they will not regulate Bitcoin;

- New York University begins teaching students about Bitcoin;

- The People’s Bank of China influenced two major banks from China to cancel all the accounts associated with Bitcoin. Even websites were censored to prevent the spread of Bitcoin information;

- Apple reverses Anti-Bitcoin policy, therefore mobile wallets are allowed in the App Store;

- Silk Road 2.0 is taken offline by the FBI;

- By the end of the year, Microsoft, Dell, Wikipedia, Newegg are starting to accept Bitcoin as payment and also Canadian companies start paying their employees in Bitcoin'

2015:

- Bitcoin starts the year with a price of $313.92;

- Silk Road founder, Ross Ulbricht is sentenced to life in prison bringing another “dark side” attention of cryptocurrencies;

- Satoshi Nakamoto has been identified as an Australian entrepreneur Craig Wright, but the details of the story suggested it was a false alarm;

- The Economist wrote an article titled “The magic of mining” suggesting that Bitcoin has become a big competitive business;

- Financial community, such as JPMorgan starts to embrace the blockchain technology behind;

- Japanese prosecutors charged Mark Karpeles (CEO - Mt. Gox) for stealing 321 million yen worth of Bitcoin;

- The UK government’s economic and finance ministry announced plans to apply anti-money laundering regulations to digital currency exchanges;

- New York became the first US state to issue a strict set of cryptocurrency regulations: BitLicense, a 44 page document, forcing most of the companies to change their location or closing the business;

- US recognizes Bitcoin as a commodity;

- The Swiss Tax Authority ruled that there would be no VAT (value-added tax) on Bitcoin transaction;

- Bitcoin is the best performing currency of the year;

2016:  

- Bitcoin starts the year with a price of $434.22;

- Geopolitical Events such as Brexit, US election supports Bitcoin;

- Bitfinex exchange suffers a security breach that led to the theft of an unconfirmed number of Bitcoins;

- Bitcoin gained more value than any other currencies in 2016, driven by China’s crackdown on the Yuan and increasing acceptance by consumers and businesses;

- A hard fork debate continues. Those seeking to increase the maximum block size from 1MB to 2MB claimed that is necessary to keep transaction costs down;

- The block reward is halved to 12.5 BTC;

- Investments in blockchain technology reached new highs;

Conclusion:

Bitcoin’s technology has the potential to change the world in a better way. That’s why we have to embrace this technology in order to make a better place.


ZAGTOR Team


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