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The Definitive History of Bitcoin

THE DEFINITIVE HISTORY OF IN 2008, THE AFTERMATH OF THE Subprime Mortgage Crisis LED TO: QUANTITATIVE EASING BY THE FEDERAL RESERVE GLOBAL RECESSION THE EUROPEAN SOVEREIGN-DEBT CRISIS Confidence in government issued currencies began to come into question. It was the perfect storm for the emergence of a new crypto currency: BITCOIN B the birth of the internet, there have been movements to create virtual cash. However, early attempts could not solve the "DOUBLE SPENDING" problem: The way around this is to verify whether a token has been spent or not by a trusted source. While a central authority can be used, it also creates weakness in the system by having a SINGLE BREAKING POINT. DOUBLE SPENDING If digital money is just information, the same "token" can be duplicated and spent twice. INNOVATION I 2008 Bitcoin bypasses this by using the BLOCK CHAIN, a public ledger of transactions where each transaction is verified by an extensive, decentralized network of computers. AUGUST 2008 BITCOIN.ORG is registered. OCTOBER 2008 Bitcoin design paper is published. WHO IS SATOSHI NAKAMOTO? Satoshi Nakamoto (likely a pseudonym) is the founder of the Bitcoin protocol. We do not know the person's true identity, although there is much speculation. WHAT WE DO KNOW: "Satoshi Nakamoto" is Japanese, and in English roughly translates to "thinking clearly inside the foundation". Satoshi is a brilliant and reclusive mathematician who is well-versed in cryptography Satoshi made a final programming contribution in mid-2010 and then passed the reigns to Gavin Andresen, Bitcoin's current lead developer 2009 NETWORK GENESIS| JANUARY 2009 The Bitcoin network comes into existence with the release of the first open source Bitcoin client and issuance of the first bitcoins. Satoshi Nakamoto mined the first block of bitcoins ever, which had a reward of 50 bitcoins. This is famously known as the "GENESIS BLOCK The first bitcoin transaction, from Satoshi Nakamoto to Hal Finney takes place. OCTOBER 2009 First exchange rate published: $1 FOR 1,309.03 BTC by New Liberty Standard. THE PIZZA YEAR 2010 For the first time, bitcoins TRADE PUBLICLY (1,000 go for $0.003 each) MAY 2010 Laszlo Hanyecz, a Florida programmer, made the world's FIRST REAL BITCOIN TRANSCATION by spending: 10,000 BITCOINS TO GET TWO PIZZAS DELIVERED. He sent the bitcoins to a volunteer in England, who then called in a credit card order transatlantically. JULY 2010 MT. GOX started what would become the LARGEST and most well- known Bitcoin exchange. MIGIC FUN FACT MT. GOX originally started as an online exchange for Magic: The Gathering playing cards before focusing on bitcoins. AUGUST 2010 A Major Yulnerability IN THE BITCOIN PROTOCOL WAS SPOTTED August 6, transactions weren't verified before they were included in the transaction log/BIlock Chain. This allowed users to bypass Bitcoin's economic restrictions and create an indefinite number of bitcoins. August 15, the vulnerability was exploited and more than 184 BILLION BITCOINS were generated in a transaction. This was the only MAJOR SECURITY FLAW Within hours, the transaction was spotted and erased from the transaction log. found and exploited in Bitcoin's history. NOVEMBER 2010 Bitcoin economy value passes $I MILLION UsD JAN 11 $0.30 2010 Mt. Gox (USD) Closing Price: JAN 10 в BITCOIN BUZZI 2011 FEBRUARY 2011 Bitcoin receives hat tip on Slashdot for achieving Dollar Parity APRIL 2011 Forbes publishes "CRYPTO CURRENCY", a Bitcoin profile. JUNE 2011 WIKILEAKS begins accepting bitcoins for donations. JUNE 2011 Market peaks at capitalization of $206 MILLION USD JUNE 2011 Password:*.... Gawker publishes story on SILK ROAD, a website on The MT. GOX user table was Logi leaked, containing details of: the DARKNET that sells illicit goods for bitcoins. USERNAMES 60.000 EMAIL ADDRESSES PASSWORD HASHES ME. Gox Some of the users on the leaked Mt. Gox database had used the same username at MYBITCOIN, a popular bitcoin wallet, and had their passwords hacked. The largest bitcoin exchange, which handled 90% of transactions at the time, admits it LEAKED USER INFORMATION. B00 HAD THEIR BALANCE STOLEN Someone gained admin access and issued SELL ORDERS for hundreds of thousands of fake bitcoins, forcing the Mt. Gox price down temporarily from $17.51 per bitcoin to $0.01 Mt. Gox announced that these trades would be reversed and trading was halted for seven days. 2011 JAN 12 Mt. Gox (USD) $5.27 Closing Price: JAN 11 CONSOLIDATION I 2012 After the crash of 2011, Bitcoin spent almost an entire year regaining the trust of buyers. As it consolidated, A NUMBER OF FIRSTS occurred for the currency: First bitcoin magazine announced First big website accepts bitcoin ( First music album sold for bitcoins First taxi service 149P accepts bitcoin First bitcoin lawsuit First private medical practice to accept bitcoin First bitcoin only Credit Default Swap First vehicle offered for bitcoin by a car producer First bitcoin class taught in a public school OCTOBER 2012 The European Central Bank concluded about Bitcoin: i Virtual currencies could have a negative impact on the reputation of central banks if their use grows considerably. This risk should be considered when assessing the overall risk situation of central banks. NOVEMBER 2012 Bitcoin celebrates first HALVING DAY. Roughly every four years, the reward for mining a new block gets halved. JAN 13 $13.30 2012 Mt. Gox (USD) Closing Price: JAN 12 2013 A PROMISING FUTURE | FEBRUARY 2013 One bitcoin becomes WORTH MORE than one ounce of silver. MARCH 2013 MARKET CAP PASSES FEBRUARY 2013 Bitcoin becomes accepted by Reddit for "Reddit Gold" subscriptions. $1 BILLION MARCH 2013 A "FORK" IN THE BLOCK CHAIN is created when computers with different versions of Bitcoin software can not accept a block as valid. The split results in two different transaction logs being formed, making it possible for the same money to be spent differently on each chain. Mt. Gox temporarily halts bitcoin deposits, and the exchange rate temporarily DROPS 23% TO $37. The split was resolved, and the price rose back near its previous levels. Users remained largely unaffected. TO THE SHOCK OF THE WORLD, CYPRUS declares a bank holiday and decides to confiscate money from bank depositors. BITCOIN SURGES on the news and hits: $100 USD ON APRIL 1ST $200 USD ON APRIL 9TH MAY 2013 US authorities SEIZE ACCOUNTS associated with Mt. Gox after discovering that it had not registered as a money transmitter with FinCEN in the US. OCTOBER 2013 THE FBI SHUTS DOWN SILK ROAD, and arrests Ross William Ulbricht on charges of alleged murder for hire and narcotics trafficking violations. As a result, the price of bitcoins dropped significantly, but then also becomes known that the FBI SEIZED ROUGHLY 26,000 BITCOINS from Ulbricht. OCTOBER 2013 The World's First Bitcoin ATM Opens IN VANCOUVER, CANADA. NOVEMBER 2013 The Fed's Chairman, Ben Bernanke, acknowledges in a letter to Senate that the Fed does not have the authority to supervise virtual currencies and that they: .may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system. NOVEMBER 2013 Virgin Galactic announces it will accept bitcoins for SPACE TRAVEL. Bitcoin surges to over $1,000 USD, even briefly reaching parity with gold trading at around $1,240 per bitcoin. One bitcoin is now worth more than 300,000X as much as they did in the first ever public bitcoin trade in 2010. DECEMBER 2013 In early December 2013, the People's Bank of China announced that it would NOT ALLOW banks to handle bitcoins. Bitcoin immediately CRASHED down to $600, and subsequently RECOVERED back to around the $900-$1,000 range. MT. GOX (USD) 1300 DEC. 13 1100 2013 900 700 500 JAN 2011 JAN 2012 JAN 2013 CLOSED AT: CLOSED AT: CLOSED AT: $0.30 $5.27 $13.30 Over the last five years, the currency has gone from being an "experiment" to a market capitalization of billions of dollars. While the future is not known, what is "certain is that Bitcoin will continue to challenge the way in which people and governments think of money and currency. Did gou-enjoy this graphic? Donate to us at: 1HBy6xYNyexLDndowzs1mxMbviuWo9bxRv O% Top Sources: bitcoin/ VISUALCAPITALIST Educating a new generation of investors on resource investing and management VISUAL CAPITALIST For a complete list of sources, please visit: FOD

The Definitive History of Bitcoin

shared by visualcap on Dec 16
In 2008, the aftermath of the Subprime Mortgage Crisis created the perfect storm for the emergence of Bitcoin. Here is the definitive history of the famous crypto-currency.


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