What is a Trust Wallet and how to create an account

Today we will tell you how the cryptocurrency Bitcoin was created. 

The history of money begins in ancient times in the era of mammoth hunting and the search for edible plants. Even then, there was a barter system, and although some anthropologists have a different opinion, the parties to the exchange were not always able to reach a consensus. However, for thousands of years before our era, money existed in the form of physical units, for example, items or clothes. And real trade began to develop when coins appeared.

And in the process of civilization development, money gradually transformed. Gold coins have replaced banknotes with silver coins and now, finally, digital codes have appeared that cannot be forged or destroyed. Before the development of the first cryptocurrency Bitcoin, its history is very unusual, and many weaknesses in the electronic payment systems that existed at that time have not yet been discovered. And after the availability of crypto funds, being an alternative option for mutual settlements for people freedom, liberating them from the bondage of financial institutions and global banks.

The history of cryptocurrency bitcoin goes back to the 80s of the last century, when many talented programmers began to improve encryption methods and data transfer protocols. Although these developments were not directly related to Bitcoin, the projects that were implemented on its basis marked the beginning of the digital period in the history of money.

Bitcoin emergence

At the end of 2008, right on Halloween, only professional cryptologists and enthusiasts who are in love with this science, included in the closed crypto mailing list, metzdowd.com, received an email from Satoshi Nakamoto (founder of Bitcoin ). It stated in the email that the user had developed a decentralized payment system and included a link to Bitcoin and an electronic cash system document describing the technology.

It is still unknown who is hiding behind the pseudonym Catoshi Nakamoto . He lives in Japan and has US passport data, and is also a computer security specialist. But he categorically denies his participation in the history of the appearance of the first cryptocurrency Bitcoin, and the emergence of the concept of the Bitcoin Project began in 2007. A year later, more precisely, on August 12, 2008, the US Patent Office registered a patent application 20100042841 A1, which was called (Update and distribute encryption keys). It was a cryptographic algorithm, similar to the one that serves as the basis for Bitcoin technology . There were three authors of this invention:

• Neil King
• Vladimir Oksman
• Charles Bray

However, they have also stated that they are not the founders of Bitcoin . Three days after the US Patent Office accepted the aforementioned request, anonymousspeech registered the domain bitcoin.org , which was later purchased by Satoshi Nakamoto .

Soon, the project itself was published on a resource focused on open source software, which was called SourceForge.net. The technology for decentralized cryptocurrency trading has been divided into two components.

1. Blockchain is a Distributed Ledger, which is a chain of blocks of information. Each new block is linked to the previous cryptographic hash, which protects the system from spoofing the entered data. Thus, the distributed registry was reliably protected from hacking, double spending and other attacks.
2. Coin mining algorithm, which defines a reward mechanism for miners who must provide computing hardware to keep the system running.

Many of those who received the letter from Satoshi Nakamoto were either ignored or criticized his idea. Attempts have been made to create alternative payment systems before, but none have succeeded. And the complete absence of data about him, caused mistrust. But the subscribers were members of the cypherpunk community . And people who prioritize anonymity online, but who nevertheless know each other.

And there have been statements that bitcoin is not worth the electricity spent on it, and no government will allow decentralized payment assets to be distributed within its jurisdiction. And if the first message can be argued against cryptocurrency, the second message seems quite convincing. But history judged otherwise, and a few months later, already in 2009, the bitcoin block number 0 appeared, including 50 coins. The founder called it Genesis (birth).

Cryptocurrency formation

During the first week after the launch, Satoshi Nakamoto was mining the cryptocurrency alone, and fixed the bugs that arose. The first Bitcoin Core wallet was released on bitcoin.org on January 9, 2009. Subsequently, it became possible to conduct cryptocurrency transactions between Bitcoin addresses .

Qualified programmer Harold Thomas Finney II soon became interested in the Electronic Cash System Report. And at that time, he was working on the PGP (Pretty Good Privecy - "Highly Trusted Privacy") system, the founder of which is the famous cryptologist Philip Zimmerman. Hal Finney also belongs to the cypherpunk community and knows both Zimmerman himself and other prominent figures in this movement. Including with Professor Szabo and WikiLeaks founder Julian Assange. And I do not want to underestimate the role of Satoshi Nakamoto , however, it must be admitted that without Hal Finney, the Bitcoin project would have been lost, and the creator of the first cryptocurrency would have become Vitalik Buterin.

Harold Thomas Finney thought the idea interesting and sent messages to Nakamoto at the email address (satoshin@gmx.com) included in the report. So, another developer appeared on the Bitcoin team , and a new node appeared in the BTC cryptocurrency ecosystem. Soon, Hal Feeney also started mining cryptocurrencies, and his first block was the 78th in the blockchain . In honor of this event, he wrote an official letter to the founder of Bitcoin , and sent a copy of it to the group of subscribers to the mailing list in which Satoshi announced his project.

“Imagine Bitcoin turning into a global payment system, then the total value of this cryptocurrency will be equal to all the wealth of our planet,” Finney wrote, and at the end, 1 BTC would be equivalent to 10,000,000 USD.

“Even if this event is unlikely, it is worth considering!” - and the well-known cryptologist finished his letter. And his words touched many. To continue the history of Bitcoin .

first transactions

The #1 transaction in the Bitcoin crypto system was the transfer of 10 coins from Satoshi Nakamoto's wallet to Hal Finney's address. And other miners were in no hurry to connect to the network, and the creator of the first cryptocurrency included several personal computers. He also continued to work actively to popularize new payment methods, interviewing everyone who was interested in the Bitcoin project .

By the end of 2009, the bitcoin exchange rate fluctuated between 700 and 1,600 coins per US dollar. You can find out the current cost on the NewLibertyStandard website. The price was set based on the cost of electricity multiplied by the miners' CPU power and divided by the number of mined coins. Thus, we counted the number of bitcoins to buy a pizza (or rather two pizzas). And this transaction took place in May 2010, and remains forever in the annals of the history of the formation of the first cryptocurrency.

Important moments in bitcoin history

There are many interesting events in the history of cryptocurrency. We list the most important ones in chronological order:

1. 2008 - Satoshi Nakamoto publishes the concept of Blockchain technology.
2. 2009 - the generation of the first block of digital currencies and the creation of the Bitcoin ecosystem;
3. 2010 - The opening of the first cryptocurrency exchange market and the first mining pool.
4. 2011 - the price of bitcoin reaches $31, the first transaction to sell a car for bitcoin takes place, and the first option contract is concluded.
5. 2012 - The first drop in the network occurs, the Bitcoin Found organization and the first BitcoinCentral banking type organization are created. Due to a hacker attack, the TradeHill exchange went bankrupt, and cryptocurrencies worth $100,000 were stolen.
6. 2013 - Bitcoin price rose to $1,001 (although not for long). Crypto funds began to be actively used, and the total market value of digital currencies exceeded one billion US dollars.
7. 2014/2015 is a period of relative deflation that occurred after Mount Gox.
8. 2016 - A number of Western countries, including the United States, as well as Japan, recognize cryptocurrency as a type of commodity. By the end of the year, Bitcoin was worth $966.
9. 2017 is the year of rapid growth, in August the first hard fork of the network occurred, and in December, Bitcoin almost reached $20,000.
10. 2018 is a gradual but steady decline, and its end was crypto winter.
11. 2019 is a revival of the market, Bitcoin rises to $11,000 from $2,260, but drops to $7,300 by the end of the year.

The US-China trade war and the threat of a new global crisis have begun, and many players in the financial market prefer cryptocurrency to traditional money.

Even the panic after the start of the global pandemic could not bring down the cryptocurrency market. After a short drop, bitcoin and the top altcoins are in an uptrend.

Bitcoin regulation in the world

FinCEN , a division of the US Treasury, raised the issue of the need for legal regulation of cryptocurrency trading in 2013. The Americans came to the conclusion that crypto-exchange websites should require customers to verify their identity if they suspect an account is involved in money laundering or other financial fraud. The supervision of the activities of cryptocurrency exchanges is currently entrusted to the US Securities and Exchange Commission.

There are no general rules for regulating cryptocurrency. Each state independently builds legal regulation of bitcoin and other virtual assets. In some jurisdictions, cryptocurrencies are banned, other countries recognize cryptocurrencies as digital stocks, and still others, even though they don't ban cryptocurrencies.

Here are some examples:

• Australia - Cryptocurrency is a financial product and all activities related to it are subject to licensing.
• Argentina - Bitcoin is a commodity or something and all transactions with its participation are regulated by civil law
• China is a country that plans to issue a national cryptocurrency, so banks and payment institutions are not allowed to work with Bitcoin. Cryptocurrency is a private virtual good.
• The United Kingdom is a leading cryptocurrency integrator and one of the most convenient and convenient jurisdictions for doing crypto business. The government supports projects related to virtual currency. However, the legal status of cryptocurrencies in this country has not yet been fully determined.
• European Union - Taxes are collected from operations using cryptocurrency in accordance with the national legislation of the member states of the European Union. Except for VAT, which is not charged at all.
• The best jurisdictions for doing cryptocurrency business are Estonia, Hong Kong and the United Kingdom. Some companies are registered in Singapore, Seychelles and other countries. And in Russia, the legal system for cryptocurrency has not yet been established.

conclude 

The complete collapse of the digital asset BTC has been predicted a thousand times, but the Bitcoin sign is not even thinking of disappearing. And the blockchain era began with the advent of the first cryptocurrency, and now 7,148 startups have already been registered. Distributed recording technology is used in many areas of human life, from the entertainment industry to medicine.

As for the future of the digital currency Bitcoin , after the formation of a stable exchange rate for this currency, it can in fact become digital gold and will be used in mutual settlements around the world. But for this, the Bitcoin programming team still needs to work a lot, otherwise ether or another cryptocurrency will take its place. The transition of the economy to cyberspace is inevitable and we need to prepare for that now.