February 21st, 2018
Finance, like many other inventions around the world, is constantly evolving. At the very start, it was basic: food was traded for livestock, livestock was traded for resources like maize or wood, and so on. With time it progressed to precious metal such as gold and silver, and now the next step in financial evolution came to light.
This new form of currency is constantly evolving in the past decade, it was developed by an unknown person named Satoshi Nakamoto and is maintained by a collective group of bright minds in the technology. This is a new form of money which is created and held in digital form, and the most important thing is that no central bank or government owns it or decides its value. This new form money is named, ‘Bitcoin’.
The history of Bitcoin
Historically, the US currency is based on gold. You can give dollars to the bank and in turn, receive an equivalent amount of gold. However, the Bitcoin currency system is not based on gold or silver; it is based on mathematical proofs.
Bitcoin currency is generated through a complex sequence of mathematical formulas which run on a computer; this network shared public ledger using Blockchain technology that records and validates every transaction processed.
The most interesting thing about this digital currency is that no single financial institution or government controls the Bitcoin network. The main idea behind this new currency system is that it is decentralized – which means it is completely independent of central authority such as a government, a country, or a bank. But when was Bitcoin invented? Is it a legitimate and valid currency? Why did none think of such an idea before?
How Did Bitcoin Start?
With time, as Bitcoin is becoming popular, there are many questions being asked by enthusiasts around the world. The most commonly asked question about Bitcoin is, “Who created it?” The answer is not straightforward; the identity of the creator is still a mystery. All we have is a pseudonym – Satoshi Nakamoto. The account is no longer active, coins available in his wallet were never spent.
A recently published article suggested that Satoshi Nakamoto could be a group of people which included Vladimir Oksman, Neal King, and Charles Bry. These three people filed a patent related to secure communication two months before purchasing the Bitcoin.org domain. Maybe it’s a coincidence, maybe it’s not.
What Are The Facts?
– “Bitcoin: A Peer to Peer Electronic Cash System”, was published on a cryptography mailing list under the name “Satoshi Nakamoto” on 31st October 2008. This publication outlined how Bitcoin would operate.
– On 18th August 2008, an unknown entity or person registered the Bitcoin.org domain.
– On 8th August 2009, the first version of Bitcoin was announced, and Bitcoin mining followed shortly after.
The mystery surrounding Satoshi Nakamoto was fitting. Privacy was the key value for Bitcoin and all of its users. It may be tough to know who first created Bitcoin, but it is known that the technology that he started left ripples in the financial world.
What is Bitcoin Used For?
Currency must have a value to ensure its stability. One common way for an individual to judge the value of currency is to determine what they can use it for; Bitcoin is no exception. A host of merchants and vendors from around the world now accept Bitcoin alongside fiat currency. With time, use of digital currency is increasing and millions of enthusiasts are excited about this new concept.
One early adopter of Bitcoin currency was computer retailer Dell. When Dell started accepting Bitcoin, it turned out to be one of the largest companies to accept it internationally. With time, many top business groups around the world started accepting this mode of payment, and there are many reasons why the growth of Bitcoin is considered as a boon for business groups.