According to HistoryOfBitcoin.
org, it all started in 2007 with a man named Satoshi Nakamoto. No one knows who he is but from legend he lived in Japan and started working on the concept of bitcoin in 2007. A year after on August 15, a patent application was filed by Charles Bry, Neal Kin and Vladimir Oksman. The patent was an encryption patent for the idea of bitcoin.
However, all three men deny any connection to Nakamoto. Three days later Bitcoin.org is registered using anonymousspeech.
com, which users are allowed to register sites anonymously. Two months later, on October 31, Nakamoto publishes a paper to solve a few problems like Bitcoins being copied and double spending. Three months later, to kick off the year 2009, the first block (A block is a file where data pertaining to the bitcoin network is recorded -investopedia.com) is mined at 18:15:05 GMT which generated 50 Bitcoins and named ‘The Genesis Block’.
Later on in the year an exchange rate is established, making the value of Bitcoin at US$1 = 1,309 BTC (0.008 of a US cent for every one Bitcoin). Nothing happens for while until a currency exchange for Bitcoin is made on February 6, 2010 and the patent from 2007 is approved 12 days later. Then in May, Bitcoin is used for the first time to make a real-world transaction. A Jacksonville, Florida programmer buys two pizzas for 10,000 BTC. At the time 10,000 BTC was around $25, nowadays it would be $150,490,000.
Two months later, in July Bitcoin’s value increases tenfold, making the rate US$0.08/BTC (0.08 of a cent for every one Bitcoin). In August an exploit is found and generates 184 billion Bitcoins (14,720,000,000 USD back then and you can only imagine what that is today). Nothing happens for the rest of the year but in 2011 the Silk Road opens.
The Silk Road is a black market for drugs, guns and even hitmen. However, the only way of payment is Bitcoin. This becomes a huge deal for Bitcoin and helps the exchange rate go up in later February to US$1.00/BTC ($1 USD every 1 Bitcoin). For the rest of the year Bitcoin just opens up in different countries like Brazil and Great Britain.
This brings us to 2012 where companies either begin or ended. 2012 had 3 hackings, 2 companies end and 6 startups. In February of 2013 PizzaForCoins.com opens, it’s a website that acts as a middleman for users to order pizza with Bitcoins, just missing the 2012 window of new companies emerging from Bitcoin. Many people believe the site was created as a spinoff of the first real-world transaction from 2010. 2013 didn’t bring much but does follow the crashes and growth patterns of Bitcoin from previous years.
Although bitcoin does gain a lot of popularity and exposure this year making the exchange rate US$100/BTC also the Silk Road is shut down by the FBI. The shutting down of the Silk Road leads to Charlie Shrem, CEO of Bitlnstant, arrested over allegations of money laundering in connection with the Silk Road in 2014. BitInstant is a Bitcoin exchange site. For the next 4 years leading up to today Bitcoin has hit record highs in the stock market. Growing up towards $20,000 USD for just 1 Bitcoin.
