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A Short History of Bitcoin Everyone Should Know

What is Bitcoin?

If there’s one cryptocurrency you should know about, it’s Bitcoin. Bitcoin is a type of digital money that you can use to buy things or send to other people over the internet. It was created in 2009 by a person or group using the name Satoshi Nakamoto.

Unlike traditional money, which is controlled by governments or banks, Bitcoin is decentralized. That means no one person or organization has complete control over it. Instead, it operates on a technology called blockchain, which is like a digital ledger that keeps track of all the transactions.

It was the financial crisis of 2008,  Wall Street collapsed on the other hand  Satoshi Nakamoto published a paper that founded Bitcoin and the basis of blockchain technology.  The financial crisis cost the global economy in trillions of dollars that almost ended the  trust between financial titans and the public. Meanwhile Bitcoin provided a system of decentralized trust for value transfer, relying not on the ethics and rules of humankind but on the calculation of computers.

Also read about: What makes people go crazy about Bitcoin?

Who is Satoshi Nakamoto?

No one exactly knows who he is.  He, she, they or it totally remains  anonymous.  on a profile page Satoshi created for the P2P(peer to peer)  Foundation. He wrote that he was a 37 year old male living in Japan. 

Outside of Japan fact digging has led people to believe Satoshi recided in the United Kingdom, North America, Central America, South America or even the Caribbean. People made others speculations from his writing style and from the phrases used by him that he lived in United Kingdom. So many things was shown by the media and news channels. An Australian Craig Wright claimed to be Satoshi in May 2016 which grabbed the attention of people and media houses.

Many people came forward to claim to be Satoshi Nakamoto which led to the possibility that Satoshi isn’t even a single person but rather a group of people. Satoshi showcased  a wide scope of topics including cryptography, computer science, economics, psychology and ability to communicate it all fluidly which lead us to believe that he is more than one person.  

We are not sure whether this mystery will be resolved in future but Satoshi Nakamoto was sure  of the Wall street’s instability.

What makes Bitcoin scarce?

Bitcoin’s maximum supply is 21 million and it is fixed which is not going to change ever.When a cryptocurrency is released the creators can set its parameters like how much there is, rules for buying and selling and how new Bitcoins are added to to the marketplace  etc and these rules cannot be changed even by Satoshi or the government.  Bitcoins cannot be duplicated and cannot be recreated.These rules make Bitcoin a truly scarce resource.

Also read about: Money, a better way of understanding!!

The Birth of Bitcoin

During the financial crisis of 2008 on October 31, 2008 satoshi release the Bitcoin whitepaper which explained how the Bitcoin will work. In the concluding paragraph of his foundational paper Santoshi  wrote-”we have proposed a system for electronic transactions without relying on trust”

Satoshi was not creating the Bitcoin to enter seamlessly  into the existing governmental and financial system but instead to be an alternative system free off of government control and governed by the decentralized masses.

 On November 9 in 20008, the Bitcoin project was registered on sourceForge.net 

The first ever transaction using Bitcoin toook place between Satoshi Nakamoto and Hal Finney  an American developer for PGP Corporation.

 After 2010 Satoshi disappeared and people did not hear anything from him.

Since Satoshi disappeared Bitcoin has unleashed a tidal wave of disruption and rethinking of global financial and technological system. Countless derivations of Bitcoin have been created such as Ethereum, Litecoin, Monero and Zcash and all of which rely on blockchain technology Santoshi is gift to the world.

Ruchi Tomar
Ruchi Tomarhttps://financiallanes.com
A full time blogger from last 1 year. experienced in content writing.
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