Bitcoin. How it started.

Cryptocurrencies are designed to turn the world financial system. Even now we can say that bitcoin has succeeded. But at the very beginning of the journey in Bitcoin, almost no one believed.

Someone Satoshi Nakomoto three together with the programmer and copywriter turned over the financial game, as determined by the price of BTC before the exchange, and in conclusion will identify the main factors that have increased BTC in 10 years by 8 million times.
The idea of creating an alternative to paper money is not new. The recession and the global financial crisis are the main reasons why many people stopped trusting money and set a goal — to turn the world financial system and create a new currency that does not depend on any factors. Since 2008, the world has been gripped by the financial crisis, which has created ideal external factors for the presentation of bitcoin.

It's hard to believe, but in 2018 Bitcoin will turn 10 years old. In the fall of 2008, dozens of experts cryptographycal "gated community", I've received an email from Satoshi Nakamoto . The letter said that Satoshi is working on a new monetary system. In the attached link on nine pages in scientific style with schemes Satoshi painted how Bitcoin will work . The new system was built on 2 "whales": blockchain and mining. The blockchain in the description represented the registry from the chain of transaction blocks, and each subsequent block is associated with the previous one. Blockchain solved the main problem of all electronic money — provided protection against theft and double use of funds, as it was impossible to make changes in the transaction. And mining determined how the reward will be distributed among the participants of the blockchain, ensuring the network's performance.

Mailing Satoshi recipients perceived very skeptical. Some believed that the cryptocurrency would cost less than the electricity needed to produce it. Others approached Bitcoin from the legal and administrative side, saying that the governments of the countries will not allow the functioning of bitcoin. Third did take for the axiom statement that the idea of money turnover without third party Trustees utopian, as previously there were attempts to create something like that, which were not married with success.

Funny, but it also played a role that no one had any idea who this Satoshi Nakamoto. Although the letter was addressed to members of the private distribution of members of cipher banks, one of the basic principles of which is anonymity, the participant of the distribution more or less knew who is who. But Satoshi was full nonarom. And no one knows who that is to this day.

First bitcoin Satoshi nominal himself. While the whole world was moving away from the new year celebration, on January 03, 2009 Satoshi launched his own miner and created the first block with 50 coins. It had a zero number and the name "Genesis".

Satoshi Nakamoto believed in his project and was determined. But he needed support and promotion. "Maybe you will get a couple of coins just in case," Nakamoto wrote to the forum participant. But support Nakamoto had only one programmer. And that was enough.

Hal Finney is a programmer from the US who believed in bitcoin. Hal was involved in encrypting email addresses, was the ancestor of anonymous mail servers and one of the most active members of the cipherpunk community. Representatives of the cipher Bank oppose interference in private life and the inviolability of the state. Their main weapon they consider cryptography.

Hal Finney himself was interested in cryptographic payments. The programmer decided to write Satoshi, and between them communication was started. And by the evening of 10.01.2009, after dancing with a tambourine with a lagging program-miner, Finney still managed to collect a block and get 50 tokens. The Bitcoin network has a second participant.

Inspired by the success of Hal Finney shared his experiences at the crypto forum: "Bitcoin will be a new global payment system. Then the value of Bitcoin will be equal to the value of all the world's wealth. Even if the probability of this is one hundred million, it is worth considering!"After 2 days, the network was first conducted transaction-transfer of 10 coins from Satoshi Hal.

But people did not fall into the blockchain. Hal continued to promote Bitcoin, but over time, his ardor began to fade. Noise minashigo 24/7 new cryptocurrency computer started to piss off. In 2013, Hal will regret that he still turned off the computer when the cost of the coins he mined (1000 bitcoins) will be equal to $60,000. Hal Feeney predicted the rate of 1 bitcoin = $10,000,000, but, unfortunately, he could not find the day when the price of Bitcoin broke the mark of $20,000. Hal Finney died on August 28, 2014. However, his body was cryonized, and perhaps Hal still see the day when bitcoin will be equal to $10.000.000. At least, Finney will more easily survive the bitcoin exchange rate fever than those who bought Bitcoin for $15,000.

Another key person in the history of Bitcoin was Marty Malmi . In 2009, this Finnish student wrote Satoshi a letter: "I would like to help bitcoin. Can I help?"What Nakamoto was Marty's work as a copywriter. Up to this point, Nakomoto and finni paid attention only to the technical part of bitcoin. But at the end of the zero after the collapse of the largest us investment Bank Lehman Brothers, financiers were in panic. The air began to soar the idea, and suddenly, banks all closed.

Any financial system is built on trust. Therefore, Nakamoto decided to take a course on the development of the ideology of bitcoin. In his articles, Marty told why bitcoin is safe and why it should be trusted. Then, in the autumn, a bitcoin forum was launched, and then the exchange of Fiat money for crypto-currencies was opened. In October, for $1 on the exchange gave 1309,03 BTC. By December 2009, Marty Malmi rolled out a new version of Bitcoin Core 0.2 and became the Main bitcoin coder. And by the end of 2009, the number of participants in the Bitcoin network became so large that it was necessary to hold the first hard fork — to complicate the cryptographic task of miners. So bitcoin was born.
Who is Satoshi Nakamoto
There is no genuine information about who is hiding behind the name of bitcoin Creator Satoshi Nakamoto. The name Satoshi Nakamoto translates as"clearly thinking within the system."

One of the assumptions States that Satoshi Nakamoto is a group of programmers (Neal king, Charles Bry and Vladimir oksman). In the summer of 2008, they applied for a patent describing an encryption key similar to Bitcoin. But all three deny involvement in Satoshi's identity.

Then there were a lot of investigative journalism. Newsweek found in the United States no one Dorian Prentice Satoshi Nakamoto. But this 64-year-old man immediately after the investigation published a refutation.

Also, for the person caught Nakamoto nick Szabo, the cryptologist, working in the "smart-contracts" since the late 90's, But Nick Szabo also denies such statements.

According to other publications for Satoshi Nakamoto hiding Willie Lehdonvirta, Michael Cleary, Dave Kleiman, Craig Wright, Shinichi's Mochizuki, Gavin Andresen, jed McCaleb, Ross Ulbricht. And in 2017, SpaceX Intern, and does put forward the suspicion that Nakamoto is Elon Musk. But all the persons whose names we have listed above, denied their involvement in Satoshi Nakamoto.

Why is everyone looking for Satoshi Nakamoto? According to cryptographers, Satoshi holds about 1.000.000 BTC in his hands. That is, Satoshi can bring down his own child even more rapidly than he managed to develop it.

How the first bitcoins were mined, what equipment was sufficient, how much BTC was mined for a period of time
Until 2011, anyone who had a computer could mine Bitcoin. For the production of 1 unit of were given 50 Bitcoins. The first miner, as you might guess, was Satoshi himself. In premine he got 750 BTC.

Really earn money on bitcoin mining began in the summer of 2010, when 1 BTC was given $0.1. Realizing where the money is, the user "ArtForz" for the first time launched a mining farm and got the block. From this point on, the transition to mining on video cards begins.

It is worth noting that in 2011 the complexity of bitcoin mining was 10.000. Today, it is 5 million times more difficult to get bitcoin.

The real leap in mining occurred in February 2011, when Bitcoin became equal to the Dollar. Then Bitcoin came to the rate of $20, and the block mining brought $1000. On a farm of 6 graphics cards per day could count blocks in the amount of $150,000. How to determine the price of BTC before they began to trade on exchanges
In the fall of 2009 "NewLibertyStandard" exchanged 5050 bitcoins, received $5 in my PayPal account. The first exchange transaction at the rate of 1000 BTC = $1 gave rise to discussions about the exchange rate. It was decided to calculate the cost of 1 Bitcoin as the cost of electricity consumed for mining the block. It was calculated as follows: the product of processor power and the cost of electricity in the States was divided by the number of BTC per block (50 coins).

Then the new Liberty standard exchange site was created, where the rate of one dollar was equal to 1309.03 BTC.
But currency exchange was not so important. Satoshi wanted to make Bitcoin a means of payment. Therefore, it was urgent to find the scope.

When I first had the opportunity to spend or invest BTC
Why Bitcoin has become so popular? In early 2011, Silk Road was opened-an anonymous trading platform. She worked through TOR, was completely anonymous, so the payments had to be carried out safely and anonymously. Therefore, users have chosen Bitcoin as their currency. On Silk Road you could buy all kinds of drugs, weapons, personal data, pornography, human organs and even the services of a killer. For all the time of the existence of the site, there were completely transactions in the amount of 9.500.000 BTC. Therefore, quite often Bitcoin is associated with something illegal.

Legally, Bitcoin was used as a means of payment in 2012. Then the first Bitcoin store was opened, the first machine was bought for BTC, for the first time it was possible to pay for medical services with cryptocurrency and drive a taxi.

When did Bitcoin first have an official market price?
The first official market price of Bitcoin was set on July 17, 2010 on the Mt exchange.Gox is 5 cents. In November, the Bitcoin exchange rate was already 50 cents, and in February 1 coin became equal to 1 dollar.

In 2011, Bitcoin is gaining popularity, but at the same time the rate begins to storm. If in June 2011 at the beginning of the month for one Bitcoin gave $30, at the end of $17.

How much the maximum cost of the bitcoin?
Maximum bitcoin exchange rate 2017

The maximum rate in the history of Bitcoin reached at the end of 2017. On December 17, the exchange rate of 1 bitcoin reached $20,042 in electronic trading. Despite the fact that 1 bitcoin cost $997 on January 1, 2017. Seeing the cosmic growth of the Bitcoin exchange rate, many investors far from the world of crypto currency decided to invest in a promising coin, but they lost: today 1 BTC = $8.060. Although, who knows, maybe in 10 years Bitcoin will grow by 8 million times?

The main factors due to which BTC has grown in 10 years in 8.000.000 times
Why Bitcoin has become so popular? It is difficult to give a definite answer to this question, but a number of key factors can be identified.

The #1 factor People no longer trust the monetary system

Bitcoin appeared at the right time and in the right place. In 2008, the world was seized by the financial crisis, people stopped trusting banks and became "insane". In such critical moments and the story is going. However, due to such crises and mistakes of the past, many of our people in the mind of speculation about Bitcoin (Bitcoin is MMM, Satoshi is Mavrodi).

Factor #2 Silk Road marketplace

Silk Road has become a platform on which the use of Bitcoin was tested. Seeing that this system works, Bitcoin was taken out of the darknet and moved to the legal field.

Factor #3 clash of conflict of interest between citizens and the state

There is no point in denying: bitcoin has turned the financial system upside down. In this situation, it's fun to watch conflicts of interest collide. Citizens " for "the use of cryptocurrency, but the state"against". The blockchain can not be interfered with by, you can not disclose information about the participants of the block.

Factor # 4 Bitcoin provides anonymity and security of personal data, unlike banking systems.

Although this factor often harms bitcoin, as the anonymity of money in our troubled times generates distrust.

Factor #5 Hype in the media

If it were not for the media, which are the determining factor in the value of assets on the exchange, the cryptocurrency would have remained a local fun for programmers and currency in the darknet.

The weighted average price of BTC by years
how did the average cost of BTC change

2008 - the creation of Bitcoin.

2009-Hal Finney and Marty Malmi joined Satoshi Nakamoto in the development of Bitcoin. It was decided to calculate the cost of Bitcoin, based on the energy spent on the production of 1 block.

2010 - the first market price of BTC was set on the Mt exchange.Gox. In April, the updated source code of Bitcoin was published, after which the price increased 10 times.

2011-Bitcoin comes out of the darkness and ceases to be fun geeks. "Time" magazine publishes an article about the prospects of Bitcoin, after which the rate increases to $30.

2012-the biggest bitcoin theft since the security update occurred in March. 50,000 Bitcoins were stolen. The rate sharply decreased. At the end of the year, the block reward was halved from 50 to 25 Bitcoin.

In 2013, Bitcoin included in the legal field States. Germany recognizes BTC as a legal means of payment, universities in Cyprus accept BTC as a tuition fee, but China prohibits the use of cryptocurrency in the territory of its country. Zynga's Bitcoin support. But at the end of the year, $100 million is stolen from BTC accounts.

2014-the Rate continues to fall due to the arrest of the Vice-President of the Bitcoin Foundation and the charge of money laundering. In February, a vulnerability was discovered in the transactions, which the Bitcoin exchange rate fell by 30%.

2015 — August 2015 Bitcoin uses 160.000 merchants. Bitcoin start-UPS attract investment.

2016 - 771 bitcoin machines have been installed all over the world. Japan recognizes cryptocurrency as a legal means of payment. Stwam, Uber accept bitcoin.

2017 — capitalization of Bitcoin exceeded 257 billion in the cryptocurrency market 357 billion, beaten mark of the course BTC at $20,000

2018 - in February, after the correction, the Bitcoin exchange rate is leveled at $8.500.

Reviews of Bitcoin
Bitcoin is the most ambiguous phenomenon in the financial world.

For example, Pavel Durov called BTC "digital gold". For 2,000 BTC in 2013 Durov gave $ 1,500,000, while today these Bitcoins would cost $16,000,000.

Similarly, there is no consensus about Bitcoin and the government. In China, for example, 80% of all mining capacity is concentrated, but the government in January banned the production of cryptocurrency. And in Belarus, for example, in December 2017, transactions in cryptocurrency were legalized.

Elon Max also supports Bitcoin:

Bitcoin is a great idea. With BTC, you can perform illegal operations, but that does not mean that it is bad. Many things should not be illegal at all. Either way, if Bitcoin was connected exclusively to the criminal world, It wouldn't be so popular.