Who created bitcoin and why?

Why was Bitcoin created?

Cryptocurrencies owe their appearance to the cyberpunk movement in the 1990s. These people admired the Internet and the unlimited freedoms that it gives. They also professed the principle of privacy and personal freedom – something that was so lacking in the real world.

Many cryptopunks tried to come up with various programs that helped protect anonymity and weaken the control of authorities.

Of course, these guys also aspired to financial freedom. Therefore, they often experimented with prototypes of digital money. The ideal option for this could be cryptography – an encryption system based on digital codes.

After the economic crisis of 2008, there were even more attempts to create independent money. There were several reasons for this:

  1. Traditional money was controlled by the state.
  2. At any moment, the government can print more money. This led to inflation, currencies depreciated, and ordinary people lost money.
  3. Not to mention issues such as taxes, sanctions and other aggressive measures from the authorities.
  4. Cryptopunks also protested against banks. They could impose limits, block payments, control our accounts.
  5. It is not possible to conduct anonymous transfers between countries (and even within a country).
  6. At the same time, banks charge large commissions for any payments.
  7. During the 2008 crisis, ordinary people became bankrupt overnight. And the government, instead of supporting citizens, threw out record amounts to save banks and funds.

In short, the time has come to act. Cyberpunks have created several payment systems based on cryptography. The biggest hits have been Adam Back with his Hashcash or Nick Szabo with Bit Gold.

On October 31, 2008, someone under the pseudonym Satoshi Nakamoto collected the ideas of his colleagues into a coherent whole. He released a manifesto in which he described a new system – blockchain.

Satoshi shared his idea on a popular programmer forum. And then I agreed with like-minded people to launch such a project.

The Bitcoin blockchain went live on January 3, 2009. It was on this day at 18:15:05 that the first block was generated – it was called Genesis.

Nine days after mining the first 50 BTC, Nakamoto made the first-ever bitcoin transaction between his computer and that of programmer Hall Feeney.

After another 9 months, Bitcoin was first registered on the New Liberty Standard exchange. There, the highest rate reached 1309 BTC for 1 dollar. And in February 2010, the first exchange appeared, “sharpened” for assets in bitcoins – it was called Bitmarket.

The most important event in the history of cryptocurrencies took place on May 22, 2010. On this day, the programmer Laszlo Haneich made the first ever payment using bitcoins. He bought two Papa John’s pizzas for 10,000 coins. This was the first time that digital money could buy real goods.


Author of articles on trading and investments, which I have been doing for more than 8 years. Even from your phone, you can open a deal, buy shares, build up capital in assets that will bring dividends even when you stop working. You can't just not think about it.

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