Bitcoin – How the Crypto Era Began

Exactly 13 years ago in 2008, a cryptography mailing list receives an email with a link to a paper authored by Satoshi Nakamoto – Bitcoin: A Peer-to-Peer Electronic Cash System.  Satoshi’s white paper explained the methods and benefits of using a peer-to-peer network to generate what in his words could become “a system of electronic transactions without relying on trust”. This idea outlined in the paper was not the first of its kind. In the years prior, many people had attempted to create a form of digital money but failed to do so.

It is the 31st of October on the calendar, so let's recollect together on BetFury all the events that became game-changing in the Bitcoin lifetime and influenced the whole crypto world. 

Early Bitcoin Birth Period

2009: Introduction of Bitcoin, Genesis Block

2009 was a very interesting year for Bitcoin, with more technological developments being implemented and integrated with the digital currency. The first-ever block, known as the Genesis Block or Block 0, was mined on the 3rd of January, which was a huge achievement for the infant blockchain technology. In addition to this, on January 12th, the first Bitcoin transaction took place, setting the precedent for the Bitcoin digital currency that we know today. 

2010: First physical purchase with Bitcoin

The first-ever exchange of cryptocurrency for real-world physical products happened in May 2010. Laszlo Hanyecz ordered two large pizzas from Papa John’s and paid with Bitcoin. At the time, each Bitcoin was worth less than a penny … about $0.003 to be specific. The pizzas cost about $30, so Hanyecz paid 10,000 BTC for them. 

His dinner became historical as it's the first transaction using cryptocurrency to pay for a product. Every year, this day is celebrated on the 22nd of May every year as "Bitcoin Pizza Day”.

2011: Parity with US dollar, black market danger

This year was a huge one for the Bitcoin world, but not everything was positive about 2011. Firstly, Silk Road opened for businesses, which capitalized on the anonymity of the Bitcoin and users could browse on it without any form of traffic monitoring. Nevertheless, Bitcoin saw a huge amount of growth, with 25% of the total number of Bitcoins being generated, and the Bitcoin even reaching parity with the US dollar, and also with the Euro later in the year.