THE BIRTH OF BITCOIN (2008–2009);
In October 2008, someone using the name Satoshi Nakamoto published the Bitcoin white paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System."
The goal was simple:
Create money that no government or bank controlled.
Allow people to send money directly to one another.
Use cryptography to secure transactions.
On January 3, 2009, the first Bitcoin block, called the Genesis Block, was mined. It contained the famous message:
"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks."
Many believe this was a criticism of the traditional banking system after the 2008 financial crisis.
How Bitcoin Worked
Bitcoin introduced several groundbreaking ideas:
Blockchain: A public ledger that records every transaction.
Miners: Computers that verify transactions and add new blocks.
Proof of Work: Miners solve difficult mathematical puzzles to secure the network.
Fixed supply: Only 21 million BTC will ever exist, making Bitcoin scarce.
When Bitcoin first launched:
Anyone with a normal computer could mine Bitcoin.
There were no exchanges.
Bitcoin had no official price.
The First Bitcoin Transaction (2010)
In May 2010, programmer Laszlo Hanyecz paid 10,000 BTC for two pizzas.
Today, that transaction is remembered as Bitcoin Pizza Day because those coins would now be worth hundreds of millions of dollars at recent market prices.