Early History

Bitcoin was first published on October 31 at 18:10 EDT 2008 on the metzdown.com site. The site has a mailing list where anyone who enters their email address can exchange information about cryptography. At that time someone using the username Satoshi Nakamoto sent a short letter to the mailing list.

I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party.

- By Satoshi Nakamoto, metzdowd.com 2008/10/31

However, on August 18, 2008, the official Bitcoin website, Bitcoin.org, already existed. The domain is registered on anonymousspeech.com, a site that allows users to register domain names anonymously. For now, Bitcoin.org is currently listed and owned by the first two Bitcoin developers, Satoshi Nakamoto and Martti Malmi. When Nakamoto left him, he gave the ownership rights to the domain to several people, but separately from the Bitcoin developers, to share roles and responsibilities to prevent unilateral control by a certain person or group of Bitcoin projects.

On the website there is a "Whitepaper" that contains things about Bitcoin that will explain how Bitcoin works. Here are some topics that explain the contents of the Bitcoin White Paper:

• Process digital money Transactions

• Determining the order of transactions using a Timestamp (Digital Date Stamp)

• Proof-Of-Work (proof of work) to avoid fraud/hackers

• Financial Network spread globally

• Suitable computer owners are paid for their work (Mining)

• Privacy is maintained, a Transparent system and the use of code used to repel hacker attacks

When reading the Bitcoin Whitepaper, you will find something at the end, namely a reference like the image below.

It turns out that Wei Dai's theory about "b-money" was also involved in the creation of Bitcoin, but in reality it is just a misunderstanding. At that time there were some people who thought that Wei Dai was one of the developers of Bitcoin and asked a few things about Bitcoin on the lesswrong.com website, then he replied like this:

My understanding is that the creator of Bitcoin, named Satoshi Nakamoto, didn't even read my article before reinventing the idea himself. He learned about it afterward and praised me in his paper. So my connection with this project is very limited.

- By Wei Dai, in a comment on lesswrong.com 2011/2/25

But after that it was funny that he remembered to buy a Radeon 5870 and start mining himself, as he said he wanted to break even on card fees. (Even though idk what's that... )

Although everything has been explained in the white paper, there is one big question that is still unanswered, who is Satoshi Nakamoto?, many people say that it is just a pseudonym, it is not clear Is he a man/woman? Is it an individual/group and Is Satoshi Nakamoto really Japanese as his name suggests?. Even programmers who have been involved in Bitcoin software development in the early stages do not know much.

There are many conspiracies contained in the name "Satoshi Nakamoto" itself, including:

• A Name that may have a specific meaning with a specific purpose.

• Decentralization, Given Satoshi's very clear intentions, it may be true that maintaining his anonymity is necessary to ensure Bitcoin remains a truly decentralized creation.

• Deep Theory, There is a theory that Nakamoto knew the authorities would go after the Bitcoin creator if he was identified. (Does anyone remember Liberty Dollar & E-gold Ltd?)

• Not alone, There is one possibility that Satoshi Nakamoto is not one person, but many.

About Important Things

Bitcoin is a digital currency that can be sent online via the internet. Bitcoins are sent directly from one person to another over a peer-to-peer network. Unlike conventional fiat currencies, bitcoin is different in that there is no oversight that can control the value, transactions without going through a third party and this makes the fees much lower, people can use it in any country around the world, there will be no account freeze and there are no arbitrary requirements or limitations.

Some important things you should know about Bitcoin, as follows:

• Currency Exchange exists where you can buy and sell Bitcoin with Fiat Currency

• Bitcoins are stored in a Digital Wallet on a Computer or Mobile Device

• Sending Bitcoins is as easy as sending an E-mail

• The Bitcoin Network is protected by Individuals called Miners

• Miners are rewarded with newly generated Bitcoins for verifying transactions

• All verified transactions will be recorded in a transparent public file

Transfers are facilitated directly without the use of a financial processor between the nodes (clients using or holding Bitcoin or downloading full files of transactions). Bitcoin clients will broadcast transactions to nearby nodes which will spread payments across the network. Transactions - failed or incorrect transactions will be rejected by honest clients. Transactions are mostly free, but fees can usually be paid to other nodes to prioritize transaction processing.

The total circulation will eventually be 21 million bitcoins. There will never be more coins than that. Coins enter circulation gradually, at a steady rate over many years, to the nodes that support the network in proportion to the CPU time (Hashrate) they contribute. As Bitcoin progresses towards that value, it is likely that Bitcoin will begin to experience deflation, nodes in this period are expected to rely on their ability to competitively collect transaction processing fees.

Some Historical Stories

On January 3, 2009, the first 50 Bitcoins were “generated” out of nowhere. On January 9, 2009, Bitcoin software version 0.1 was released. Compiled with Microsoft Visual Studio for Windows, it has no command line interface and is so complete that it has led to speculation that it was developed by more than one person (or by an academic with little programming experience and a lot of theoretical knowledge). Three days later the first transaction of Bitcoin currency, in block 170, took place between Satoshi and Hal Finney. This is what makes Finney ever the talk that he may have become a shadow writer on behalf of Nakamoto.

In October of the same year, the exchange rate of the coin issued by the New Liberty Standard was set at an exchange rate of US$1 = 1309.03 BTC. In 2010 the first exchange was born, it was founded by dwdollar as a Bitcoin currency exchange. In May of the same year, the first real-world Transaction using Bitcoin occurred when a Jacksonville, Florida programmer, Laszlo Hanyecz, offered to pay 10000 Bitcoins for pizza on the Bitcoin Forum. At that time, the exchange rate put the pizza purchase price at around US$25.