Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middlemen–meaning, no banks! Bitcoin can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. But much of the hype is about getting rich by trading it. The price of bitcoin skyrocketed into the thousands in 2017.
Initially, when bitcoins were mined they were virtually worthless as it cost literally cents to buy a BTC.
But it was until 22 May 2010, when someone purchased something with bitcoins.
Seven years ago on this day, someone bought Piazzas with bitcoins and this purchase was a big deal because no retailer was accepting bitcoins at that time for goods and services.
On 22 May 2010, two Papa John’s Pizzas were exchanged by Laszlo Hanyecz for 10,000 BTC. This was the first official documented purchase of goods using bitcoins.
At that time, the worth of 10,000 BTC was $41.
At the time of writing this article, the worth of 10,000 BTC is around $25.8 million.
Since the inception of Bitcoin in 2009, there have been several speculations about who the father of Bitcoin is.
Just like money, bitcoins also don’t grow on trees.
But unlike traditional paper money, you can’t touch, feel, or print bitcoin.
Bitcoins are mined on the blockchain network, and they come into existence when miners successfully mine Bitcoin blocks.
At present, the mining power of Bitcoin’s network is 300 times more powerful than the world’s top 5 supercomputers combined.
Bitcoin’s supply is finite.
There will only ever be 21 million bitcoins.
At present, 16.3 million have already been mined and are being traded. The last bitcoin will be mined in 2140. After that, no new bitcoins can be mined.
Due to the nature of Bitcoin, there is constant talk about “banning” it. This hostility towards Bitcoin is because it works outside the jurisdiction of the traditional banking system.
However, the fundamental design is such that it can’t be banned, only regulated. As long as you have an internet connection and a Bitcoin wallet, you can engage in Bitcoin.