When was Bitcoin created?
On this day 3rd January 2009 (11 years ago), Satoshi Nakamoto mined the first Genesis block also known as Bitcoin block (Block 0). The author of Bitcoin whitepaper, Satoshi Nakamoto published an online article titled Bitcoin, a peer-to-peer electronic cash system. He then released the Bitcoin white paper, the network officially launched when Nakamoto mined the first block, block 0 on January 3rd 2009, marking the birth of bitcoin’s underlying technology.
Who created Bitcoin?
Who is this mysterious founder of bitcoin? Satoshi Nakamoto, the creator and developer of Bitcoin published the Bitcoin white paper on November 1st, 2008 and mine his first Bitcoin on January 3rd, 2009. With the exception for test transactions, Nakamoto’s bitcoins remain unspent since mid January 2009. At bitcoin’s price peak in December 2017, his coins were worth over US$19 billion.
Although on his 2012 P2P Foundation profile, Satoshi Nakamoto claimed to be a 37-year-old male who lives in Japan. Satoshi has yet to disclose any personal information. There were also many circulations that Satoshi may not be from japan after all. This is due to his perfect use of english and his bitcoin software used not being documented or labelled in japanese.
Throughout the years, many people claimed to be the “real” Satoshi Nakamoto, however, there were no solid evidence to back up their statements. In 2014, hackers managed to access Satoshi Nakamoto’s email address and found the owner to be Dorian Nakamoto. However, Dorian Nakamoto stated that he had obtained the email address and password by chance, and that he’s not Satoshi Nakamoto.
In the recent 2016, an Australian computer scientist Craig Wright, claimed to be the real Satoshi Nakamoto and also claimed that he could provide the private key. However, Wright could not respond to all the doubts that was being expressed and reverted the statements. Till this day, the real identity of Satoshi Nakamoto has yet been known.
How was Bitcoin created?
Satoshi Nakamoto, Bitcoin whitepaper author, produced the first block of Bitcoin, “The Genesis Block”, on a small server located in Helsinki, Finland. It was believed that the first block Satoshi mined was mined using a Windows-powered PC’s CPU. Satoshi Nakamoto then obtained the first 50 Bitcoins as a reward. Further, to commemorate the birth of Bitcoin, Nakamoto put that day’s headline of The Times article (Chancellor on brink of second bailout for banks) to authenticate the time as the birth of Bitcoin.
The headline “Chancellor on brink of second bailout for banks” published in The Times on 3 January 2009 was embedded on the bitcoin genesis block by Satoshi Nakamoto. The note acts as a timestamp of the genesis date and warning of the instability caused by fractional-reserve banking.
In the past, people used commodities such as animals or gold as currency. Due to their scarcity they were used as a store of value. Nowadays, we use banknotes as they are cheap and easy to produce. Banknotes are highly valuable as they are backed by the government. they can be traded for high valued goods like cars, house etc.
With the rising trend of the internet, we went from banknotes to bank accounts, figures are added or subtracted when we receive salary or make purchases. Only banks have the right to alter our bank accounts. During the 2008 global financial crisis, the Federal Reserve used its power to increase the supply and circulation of money. Satoshi Nakamoto found this unreliable and worked on the creation of a new payment system method where everyone has bookkeeping rights, a controlled currency supply and hope to develop a completely fair and transparent ledger system. This initiated the driving force behind the birth of Bitcoin.
What did Satoshi Nakamoto want for bitcoin?
1. No monopoly of ownership or control
Bitcoin provides transparency, unlike currencies which are controlled by governments, Bitcoin is not owned by anyone. It is decentralized and transactions are verified by users on the Bitcoin network. Importantly, no government has the power to shut it down, unless they are able to shut down the internet.
Bitcoin is pseudonymous, not anonymous. All bitcoin transactions are logged in a public ledger which anyone can access. For example, blockchain.info broadcasts every transaction.This is transparent and law enforcers can trace the transactions right back to the day the bitcoin was mined, which can greatly helped them in finding crooks. With that being said, it is not easy to link the digital transactions or Bitcoin address directly to an individual.
3. Lower Transaction Cost
Do not underestimate this as many big banks and payment companies such as Visa and MasterCard make loads of money off transactions every second. With Bitcoin, you can overcome credit card purchases of 2–3% transaction costs, telegraphic transfer fees and even remittance taxes. Businesses can share the cost savings with consumers by taking out the middleman. The low transaction costs made micro-payments possible, which further enhances the possibilities for micro-lending and crowd-funding activities. Without Bitcoin, you would probably incur a transaction cost larger than the amount you wanted to pay.
*The Bitcoin Block Reward Halving Countdown!*
Did you know that when Bitcoin was created in 2009 the block reward granted to miners was 50 BTC. In 2012, the block reward was halved to 25BTC followed by 12.5BTC in 2016. In May 2020, the reward from bitcoin mining will decrease from 12.5BTC to 6.25BTC. This act helps to ensure the slowest possible Bitcoin’s distribution and protects its ecosystem from inflation. The halving of Bitcoins happens approximately every 4 years The halving is set to decrease the block reward for Bitcoins generated by 50 percent of every 210,000 blocks.
This process was created by Satoshi Nakamoto to keep Bitcoin’s inflation in check and to respect the increasing complexity of Bitcoin mining.
Click here to find out the exact date and discover more information about the bitcoin reward countdown.
What happens next?
What’s next after the Bitcoin halving? The Bitcoin starts a new cycle in price. Predictions have shown that reducing remuneration by half every four years leads to an increased market value of the cryptocurrency.
Bitcoin price history chart