Did you know that around 114 million accounts own Bitcoin globally? The ever-growing popularity of cryptocurrency shows no signs of slowing down.
But when did Bitcoin start and how does it work? Those are reasonable questions to ask before investing in the new and intriguing currency.
The following guide will explore the beginnings of Bitcoin. Read on and learn how BTC got its start and how Bitcoin value gets determined.
What Is Bitcoin?
Bitcoin is the most popular cryptocurrency, and it was also the first to be created. BTC is a decentralized digital currency that’s blockchain-based.
A network of users power Bitcoin to carry out financial transactions. The transactions get completed without needing a central authority or intermediary.
Bitcoin is an alternative to traditional fiat currencies like the U.S. dollar. It’s not backed by central banks or federal governments. Cryptography makes Bitcoin secure and verifies transactions using a process known as mining.
Mining BTC involves users competing to solve complex mathematical problems using powerful computers. When the problems get solved, it verifies transactions. The verification process acts as proof of work.
When Did Bitcoin Start?
Bitcoin debuted in 2008 as the first decentralized cryptocurrency. The inventor of BTC is still somewhat of a mystery to this day.
In October 2008 a Bitcoin article got posted to a cryptography mailing list. The author of the article was listed as “Satoshi Nakamoto” who’s credited as the creator.
Although, there has never been any personal information revealed about Nakamoto. Many people suspect that the creator’s name is a pseudonym for multiple creators.
Bitcoin got used for the first time in 2009 after it got released as open-source software. At this time, Nakamoto mined the first block of the blockchain. The first block contained the very first 50 Bitcoins ever made.
Early contributors continued to mine Bitcoin until 2010. Then, a programmer named Laszlo Hanyecz made the first recorded commercial BTC transaction. He famously bought two pizzas for 10,000 Bitcoins.
People have traded BTC hundreds of millions of times since then. The 10,000 BTC spent on pizza would be worth over $300 million today.
How Does Bitcoin Price Work?
Bitcoin gains value on different exchange platforms based on supply and demand. The supply depends on how many new coins get mined and current holders selling their BTC.
The demand for Bitcoin depends on several factors. It increases depending on how useful it is to own at the time. So, demand rises with added smart contracts and if more businesses begin to accept BTC.
Also, there is a boost in demand for cryptocurrencies like BTC as a store of value investment. You can visit this website for more BTC investment information.
Understanding BTC
So, when did Bitcoin start? In 2008 by an unknown creator. Although the origins of BTC are mysterious, its future looks very bright. Now you know how it works, how it’s mined, and how it gains value.
Remember this guide and consider joining millions of other Bitcoin holders on its exciting journey. Check out our site’s business and tech categories for similar helpful articles.