Each year awareness and media surrounding this new technology continue to grow. Cryptocurrency and Bitcoin, have been around for 10 years and counting, but what do most of us know about it?
There are many questions;
Questions answered below;
Getting the first Bitcoin
Users can transfer Bitcoin over networks, primarily the internet, but, other networks can be used. Computers, mobiles, and tablets can all run the Bitcoin operating protocol, so it is very easy to access – Mastering Bitcoin
In the beginning, there were no Crypto exchange websites, mobile apps, or places to trade and access cryptocurrencies like Bitcoin easily. Since then, in these 10 years, there has been a lot of development. But who started it?
The Bitcoin network was created by an unknown person, using the name Satoshi Nakamoto. No one knows who this is, even if every year, more people come forward claiming to be the famed creator.
From the very initial release of Bitcoin, the system follows the same principles as it did when it was first released. These have not been changed.
To gain Bitcoin, users must either;
- Arrange Bitcoin transactions with other people
- Mine it
Arranging transactions before crypto exchanges would have required using online forums, to auction, or look for buyers. The price would be decided or set for little to no value. During 2009/2010 there are notes showing exactly these transactions;
In March 2010, user SmokeTooMuch auctioned 10,000 BTC for 50 USD. But no buyer was found. — how bitcoin and digital money are challenging the global economic order. New York: St. Martin’s Press. p. 79.
During the very start of Bitcoin, people would swap Bitcoin, or give them away for fun, to test the system and learn about how the system works.
Someone even ordered a Pizza for 10,000 Bitcoin in 2010.
Pretty amazing right?
How Did People Get Bitcoin Initially?
For Bitcoin, the only method of generating more is to mine them. The bitcoin Protocol requires computers, to find solutions to mathematical problems while processing Bitcoin transactions on the network. Any person on the Bitcoin network can use their own computing power, to help verify and record transactions in the system. To help with this, the system, rewards these users, by giving them completely new Bitcoin. Which is then added to the overall Bitcoin available on the network.
The miners, act as the middlemen, processing all transactions made on the network, including the transfer of Bitcoin and general accounting. Showing that user A has sent Bitcoin to user B. The system and program carry out this work through a reward system called, mining.
The creator of Bitcoin, Nakamoto Satoshi, was the first miner. Receiving 50 BTC for his help in running the network.
As mentioned previously, in the beginning, many people used the system to test and learn about how it worked, which resulted in more Bitcoin being mined, and released into the market. Over time the numbers grew, and continue to grow with people now mining all over the world. Generating more and more Bitcoin, until the entire number has been released into the marketplace.
How did people store Bitcoin in the Beginning?
During the very first years, the programs and user interfaces were all based around running the protocols directly on your own computer. Initially, there were two programs available;
- Bitcoin GUI
Both of these programs, directly allow users to operate a full list of features inside the Bitcoin Protocol. They include;
- Blockchain transactions
- Transaction Exchange
- Wallet services
Users would be able to see all transactions in the system, as well as direct access to their wallets which they would fully maintain themselves. Everyone managed their own wallets completely, including file storage and private keys.
There have been stories of some users throwing away computers, with Bitcoin files storing thousands of Bitcoin. Without the files, there is no way to recover.
10 years ago compared to now, where we have apps and much easier tools for accessing and storing our assets, the user interfaces have been developed and improved greatly by developers and projects continuing to innovate. Each year more business and products join the decentralized system and seek to create newer and better tools for digital life. Now, if we lose the wallet app on our phone, we can still recover the assets in storage, using our private keys and phrases to re-enter into our accounts through a user-friendly interface. Previously the only way, was to run the Bitcoin Protocol and manually use coding or fil access to restore.
We hope this information can help, and we greatly recommend reading: Mastering Bitcoin as well as all other books surrounding blockchain and cryptocurrency.
Remember, knowledge is power and getting ahead of new technology can only be a good thing in this digital age.