BitCoin History (What You Need To Know)

He is said to be from Japan but his mail ID was from Germany, plus the bitcoin software was not available
in Japanese. He developed the system and the Bitcoin software (that is used to run the system) in 2009 but disappeared into thin air in 2010. The other developers of the system stopped hearing from him in 2010, and plenty of speculation turned up about his real identity. Some even suggested that his name was just a mashup of popular Japanese companies — SAmsung TOSHIba NAKAmichi MOTOrola. But what he created was definitely the fantasy of every tech guy in the world.
2007, Satoshi Nakamoto
According to legend, Satoshi Nakamoto began working on the Bitcoin concept in 2007. While he is on record as living in Japan, it is speculated that Nakamoto may be a collective pseudonym for more than one person.
August 2008, An interesting patent application
Three individuals, Neal Kin, Vladimir Oksman, and Charles Bry file an application for an encryption patent application. All three individuals deny having any connection to Satoshi Nakamoto, the alleged originat or of the Bitcoin concept. The three also register the site Bitcoin.org in the same month, over on anonymousspeech.com – which allows people to buy domain names anonymously.
October 2008, The White paper is published
Despite the above, Satoshi Nakamoto releases his white paper, revealing his idea for a purely peer-to-peer version of electronic cash to the world. In his vision, he manages to solve the problem of money being copied, providing a vital foundation for Bitcoin to grow legitimately.
November 9, 2008, The Bitcoin Project hits SourceForge
The Bitcoin project is registered on SourceForge.net, a community collaboration website focused on the development and distribution of open source software.
January 3, 2009, The Genesis Block is mined
The first block, nicknamed ‘Genesis’ is launched allowing the initial ‘mining’ of Bitcoins to take place.
Later that month, the first transaction takes place between Satoshi and Hal Finney, a developer and
cryptographic activist.
January 9, 2009, Version 0.1 is released
Version 0.1 of Bitcoin is released. Compiled with Microsoft Visual Studio for Windows, it lacks a command line interface and is so complete that it furthers speculation that it was developed by more than one person (or by an academic with little programming experience and a great deal of theoretical know how).
It includes a Bitcoin generation system that would create a total of 21 million Bitcoins through the year 2040.
January 12, 2009, The first Bitcoin transaction
The first transaction of Bitcoin currency, in block 170, takes place between Satoshi and Hal Finney, a developer and cryptographic activist.
October 5,2009, An exchange rate is established
Bitcoin receives an equivalent value in traditional currencies. The New Liberty Standard established the value of a Bitcoin at $1 = 1,309 BTC. The equation was derived so as to include the cost of electricity to run the computer that created the Bitcoins in the first place.
Hong Kong's First Bitcoin Counter Opens To The Public
October 12, 2009, #bitcoin-dev hits freenode IRC
The #bitcoin-dev channel is registered on freenode IRC, a discussion network for free and open source
development communities.
December 16, 2009, Version 0.2 is released
Version 0.2 of Bitcoin is released.
December 30, 2009, The difficulty increases
The first difficulty increase occurs at 06:11:04 GMT.
February 6,2010, A currency exchange is born
The world’s first Bitcoin market is established by the now defunct dwdollar.
February 18, 2010, Encryption patent is published
The encryption patent application that was filed on August 15, 2008 by Neal Kin, Vladimir Oksman, and
Charles Bry was published.
May 22, 2010, 10,000 BTC spent on pizza
A programmer living in Florida named Laslo Hanyecz sends 10,000BTC to a volunteer in England, who
spent about $25 to order Hanyecz a pizza from Papa John’s. Today that pizza is valued at £1,961,034 and
stands as a major milestone in Bitcoin’s history.
July 7, 2010, Version 0.3 released
Version 0.3 of Bitcoin is released.
July 11, 2010, Slashdot drives surge in Bitcoin users.
Mention of Bitcoin v0.3 on slashdot brings in a large number of new Bitcoin users.
July 12, 2010, Bitcoin value increases tenfold
Over a five day period beginning on July 12, the exchange value of Bitcoin increases ten times from
US$0.008/BTC to US$0.080/BTC.
July 17, 2010, MtGox is established
The MtGox Bitcoin currency exchange market is established by Jed McCaleb.
July 18, 2010, OpenGL GPU hash farm and ArtForz
ArtForz establishes an OpenGL GPU hash farm and generates his first Bitcoin block.
August 15,2010, Exploit generates 184 billion Bitcoins
Bitcoin is hacked. A vulnerability in how the system verifies the value of Bitcoin is discovered, leading to
the generation of 184 billion Bitcoins. The value of the currency – from a high of $0.80 to $1 in June drops
through the floor.
September 14, 2010, An offer for CUDA
An offer is made by jgarzik, in the name of the Bitcoin Store, to puddinpop to open source their Windowsbased
CUDA client. The offer was in the form of 10,000 BTC which, at the time, was valued at around
US$600 to US$650.
September 14, 2010, Block 79,764
Split allocation of the generation reward used to mine Block 79,764.
September 18, 2010, CUDA becomes open-source
Under the MIT license, puddinpop releases the source of their Windows-based CUDA client, open sourced
by the Bitcoin Store, following a contribution by jgarzik.
September 18, 2010, Slush's Pool mines its first block
Bitcoin Pooled Mining (operated by slush), a method by which several users work collectively to mine
Bitcoins and share in the benefits, mines its first block.
September 29, 2010, Another exploit discovered
A microtransactions exploit is discovered by kermit, precipitating the release of Version 0.3.13.
October 2010
Financial task force issues warning
Bitcoin goes under the spotlight. After the hack in August – and a subsequent discovery of other
vulnerabilities in the blockchain in September – an inter-governmental group publishes a report on money
laundering using new payment methods. Bitcoin, it suggested could help people finance terrorist groups.
OpenCL miner released
The first public version of an OpenCL miner is released.
October 7, 2010, Stalled Bitcoin value begins climb
The Bitcoin exchange rate, stalled at US$0.06/BTC for several months, begins to climb.
October 10, 2010, MtGox switches to Liberty Reserve
MtGox changes its main funding option from PayPal to Liberty Reserve.
October 16, 2010, First escrow transaction takes place
Bitcoin Forum members Diablo-D3 and nanotube conduct the first recorded escrow trade of Bitcoins with
theymos as escrow.
October 17, 2010, #bitcoin-otc trading channel opens
The #bitcoin-otc trading channel is registered on freenode IRC as a marketplace for over-the-counter
trading of Bitcoins.
October 28, 2010, First ever short sale
Facilitated by #bitcoin-otc, the first recorded short sale of Bitcoins is initiated in the form of a 100 BTC
loan from nanotube to kiba.
November 6,2010
Bitcoin reaches $1 million. Based on the number of Bitcoins in circulation at the time, the valuation leads
to a surge in Bitcoin value to $0.50/BTC
December 7, 2010, Bitcoind compiled for Nokia N900
Bitcoin Forum member doublec compiles Bitcoind, which was written for the Nokia N900 mobile
computer.
December 8, 2010, First mobile Bitcoin transaction
The first portable-to-portable transaction of Bitcoins occurs when ribuck sends doublec 0.42 BTC using
Bitcoind.
December 9, 2010, First call option contract sold
The first call option contract for Bitcoins is sold on the #bitcoin-otc market. The transaction occurs between
nanotube and sgomick.
December 9, 2010, Difficulty increases
The generation difficulty exceeds 10,000
January 2011, Silk Road opens for business
The Silk Road, an illicit drugs marketplace is established, using Bitcoin as an untraceable way to buy and
sell drugs online.
January 2, 2011, Tonal Bitcoin standardizes its units
Tonal Bitcoin, designed for those who prefer the Tonal number system, standardizes its units.
February 2011, Bitcoin reaches parity with US dollar
Bitcoin reaches parity with the US dollar for the first time. By June each Bitcoin is worth $31 giving the
currency a market cap of $206 million.
February 14, 2011, Vehicle offered for Bitcoins
An Australian member of the Bitcoin Forum attempts to sell his 1984 Celica Supra for 3000 BTC, and
becomes the first person to offer a vehicle in exchange for Bitcoins.
February 25, 2011, WeUseCoins.com is created
WeUseCoins.com is registered and built into a Bitcoin resource and creates one of the most watched videos
on Bitcoin.
April 23, 2011, Bitcoin passes parity with Euro
On MtGox, the BTC/USD exchange rate reaches and passes parity with the Euro and the British Sterling
Pound. The value of Bitcoin money stock passes US$10 million.
June 13, 2011, Largest ever Bitcoin theft reported
The first major theft takes place. Bitcoin Forum founder allinvain reports having 25,000 BTC taken from
his digital wallet, which had an equivalent value of $375,000. In the same month, a major breach of security
sees the value of the currency go from $17.51 to $0.01 per Bitcoin.
June 2012, Coinbase is founded
Coinbase, a bitcoin wallet and platform, is founded in San Francisco, California.
November 15, 2012, WordPress.com accepts Bitcoin
WordPress.com announces that it accepts Bitcoins as a form of payment for users to purchase upgrades.
November 28, 2012, Halving Day
On Halving Day, Block 210,000 is the first with a block reward subsidy of 25 BTC.
March 18, 2013, FinCEN defines stance on Bitcoin
The US Financial Crimes Enforcement Network (FINCEN) issues some of the world’s first bitcoin
regulation in the form of a guidance report for persons administering, exchanging or using virtual currency.
This marked the beginning of an ongoing debate on how best to regulate bitcoin.
March 28, 2013, Market cap reaches $1 billion
Bitcoin market capitalisation reaches $1bn.
May 2, 2013, First Bitcoin ATM unveiled
The first Bitcoin ATM in the world is debuted in San Diego, California.
May 18, 2013, PrimeDice.com launches online casino
PrimeDice.com launches as an online casino platform that accepts Bitcoin wager
August 20,2013, Bitcoin ruled private money in Germany
Federal Judge Mazzant claims: “It is clear that Bitcoin can be used as money” and “It can be used to
purchase goods or services” in a case against Trendon Shavers, the so-called ‘Bernie Madoff of bitcoin’.
Bloomberg begins testing bitcoin data on its terminal. Although alternative tickers exist, endorsement from
Bloomberg gives bitcoin more institutional legitimacy.
November 2013, The US Senate holds its first hearings on the digital currency
Bitcoin price climbs to $700 in as the US Senate holds its first hearings on the digital currency. The Federal
Reserve chairman at the time, Ben Bernanke, gives his blessing to bitcoin. In his letter to the Senate
homeland security and government affairs committee, Bernanke states that bitcoin “may hold long-term
promise, particularly if the innovations promote a faster, more secure and more efficient payment system”.
December 2013, China's Central Bank bans Bitcoin transactions
China’s central bank bars financial institutions from handling bitcoin transactions. This ban was issued after
the People’s Bank of China said bitcoin is not a currency with “real meaning” and does not have the same
legal status as fiat currency. The ban reflects the risk bitcoin poses to China’s capital controls and financial
stability. Today China remains the world’s biggest bitcoin trader, with 80% of global bitcoin transactions
being processed in China.
January 2014, First insured bitcoin storage service
Bitcoin custodians Elliptic launch the world’s first insured bitcoin storage service for institutional clients.
All deposits are comprehensively insured by a Fortune 100 insurer and held in full reserve. This means
Elliptic never re-invests client assets; instead they secure them in deep cold storage. Overstock.com
becomes the first major online retailer to embrace bitcoin, accepting payments in the US. Overstock was
the first in what is now an expeditiously growing list of large businesses that accept bitcoin.
February 2014, HMRC classifies bitcoin as assets
HMRC classifies bitcoin as assets or private money, meaning that no VAT will be charged on the mining
or exchange of bitcoin. This is important as it is the world’s first and most progressive treatment of bitcoin,
positioning the UK government as the most forward thinking and comprehensive with regard to bitcoin
taxation.
June 2014, The illegal online marketplace
The US government auctions off more than 29,000 bitcoins seized from the Silk Road, the illegal online
marketplace. The sale and closure of the marketplace marks growing institutional understanding of the
potential use cases of bitcoin. Additionally, the closure and auction of the Silk Road has helped bitcoin gain
legitimacy as it demonstrates that bitcoin is not an easy way for online criminals to avoid the rule of law.
From this point onwards bitcoin can no longer be considered as a currency for criminals. The use of the
bitcoin blockchain means that the identity of users can often be established.
July 2014, Bit Licence’
The ‘Bit Licence’ edges towards reality as the New York State Department of Financial Services releases
the first draft of the agency’s proposed rules for regulating virtual currencies. The European Banking
Authority publishes its opinion on ‘virtual currencies’. Their analytical report recommends that EU
legislators consider declaring virtual currency exchanges as ‘obliged entities’ must comply with anti-money
laundering (AML) and counter-terrorist financing requirements.
The EBA report is important as it acts as a catalyst to launch bitcoin into the financial mainstream by
highlighting the fact that virtual currencies require a regulatory approach to strive for an international
coordination to achieve a successful regulatory regime. Also that month GABI (Global Advisors Bitcoin
Investment Fund) launches the world’s first regulated Bitcoin Investment fund. This is important to the
bitcoin ecosystem as the launch of this investment vehicle adds further legitimacy to bitcoin in addition to
allowing regulated investors a way to invest in bitcoin.
August 2014, HM Treasury’s positive outlook on bitcoin
The Chancellor of the Exchequer, George Osborne, demonstrates his and HM Treasury’s positive outlook
on bitcoin when he purchases £20 worth of bitcoin and announces HM Treasury’s Call for Information on
digital currencies, offering digital currency businesses the chance to comment on the risks and benefits and
potentially influence future government policy.
October 2014, TeraExchange
TeraExchange announces that the first bitcoin derivative transaction was executed on a regulated
exchange, adding a new hedging instrument to bitcoin and instilling credibility and institutional
confidence in the entire bitcoin community.
December 2014, Microsoft accept bitcoin
Tech giant Microsoft begins accepting bitcoin payments.
January 2015, NYSE
The New York Stock Exchange is a minority investor in Coinbase’s $75M funding round. The NYSE aims
to tap into the new asset class by bringing transparency, security and confidence to bitcoin.
March 2015, UK Treasury’s call
The results of the UK Treasury’s call for information on digital currency are announced.
Future predictions
There are several possible ways Bitcoin can go at this point, all of which point to a legitimate, widespread
adoption by large institutions through tighter regulation. Recently, New York’s BitLicense became the
world’s first digital currency-specific regulatory regime. It has been through a couple of rounds of
consultations and is expected to come into force in a couple of weeks.
The European Central Bank and European Banking authority have both released detailed reports on digital
currencies, and suggested regulation of the industry by the EU to further control price fluctuations. The
Winklevoss brothers, they of Facebook fame, are on the verge of launching their own exchange-traded fund
holding Bitcoins.
Bitcoin’s journey into the financial mainstream has already begun, with HM Treasury’s report on digital
currencies marking encouraging progress toward the predictions in this infographic. The report introduces
anti-money laundering, consumer protection and technical standardisation for digital currency companies
in the UK, which will encourage traditional financial services to engage more with digital currency
businesses and accelerate the integration of blockchain technology within financial services.