The first mentions of a cryptographic currency appeared in 1983, but until 2008 everything remained “on paper”. Ten years ago, the oldest cryptocurrency, bitcoin (Bitcoin), appeared. For almost five full years, competitors have used its algorithm to create their options (altcoins). When the bitcoin rate jumped sharply in 2017, discussions began about who invented bitcoin and why it was done.
How bitcoin appeared
The concept of a cryptocurrency was issued thanks to the evolution of a non-cash transfer system. The essential task of the creator of bitcoin was to produce a technology that allows direct and at the same time anonymous payments via the Internet. The difficulty was to leave confidential information about the payer and the recipient, but allow the payment data to be presented to third parties.
The basic anti-fraud algorithms were developed long before the first Bitcoin coin appeared:
1983 – Blind Signature Algorithm, Electronic Cash Protocol (David Chaun worked on them) was created.
1997 – Hashcash (anti-spam protection developed by Adam Black) appeared.
It is deserving to mention Nick Szabo, who worked on the Bit Gold decentralized financial system project. Sometimes it is he who has attributed the authorship when they discuss who created bitcoin. But the programmer himself denies this.
The story of the progenitor of cryptocurrencies
It is officially considered that the founder of the cryptocurrency is Satoshi Nakamoto. This is what the anonymous developer called himself, who wrote the protocols of a fundamentally new currency in 2008, which he called Bitcoin. 2009 was the starting point for the mining of the first digital coins. The creator of the system generated the first bitcoin wallet and created the first block. Originally, due to the lack of material support, the cost of one monetary unit was assumed by the cost of electricity.
It took only two years for the Bitcoin to real money exchange services to open. Next, there were proposals for trading cryptocurrency on the exchange, along with the US dollar, pound, or euro. Even the founder of bitcoin did not anticipate such dynamics. The leading mass media, stock exchanges, and corporations drew attention to the new method of paying for goods. It was not without crime: until 2013, the Silk Road criminal group was operating in the American market, selling prohibited goods specifically for bitcoins.
After the capture of its creators, they started to take cryptocurrency seriously. That, according to experts, provoked a sharp rise in the bitcoin rate. On the one hand, the governments of numerous countries are trying to take charge of the anonymous payment system. On the other hand, it attracts investors and manages a high cryptocurrency price.
Bitcoin developer versions
The key story about the person who invented the cryptocurrency is his anonymous life. Most likely Satoshi Nakamoto is a pseudonym. After all, the interpretation of these words indicates the following:
Satoshi – resourcefulness, wisdom, clear thinking;
Naka – relationships, internal environment;
Moto – origin, basis, foundation.
There is no point in revealing the personality of the creator. His fortune, according to some versions, is estimated at 1 million bitcoins (more than 2.5 billion US dollars). With such resources, there is no requirement to attract attention to yourself. Moreover, the creator of the cryptocurrency, back in 2010, announced that he was switching to other projects, and other people would be engaged in bitcoin.
Some researchers are inclined to believe that the Bitcoin developer is English-speaking. Indeed, when communicating on the network, and writing instructions for the cryptocurrency protocol, English was always used (there is not a single manual in Japanese). The media mentioned several more names “suspected” of involvement in the creation of bitcoins: Michael Claire, Jack McCaleb, Dorian Prentice Satoshi Nakamoto, Craig Wright, Donal O’Mahoney, and Michael Piertz.
Reasons for the popularity of bitcoins
None of the listed applicants provided reliable evidence that he was the developer of the cryptocurrency. The topic remains open, and the bitcoin price is holding at an impressive level (6500 USD at the time of this writing). No other currency has ever managed to grow so expensive. Even platinum has an established rate almost 8 times lower.
The causes for its high popularity are various important features:
- Complete anonymity of the system. Transactions are carried out without the removal of personal data and identity verification.
- High security. It is simple to track the performance of payments in the archive of transactions. All transactions of coins are stored permanently from the second they are mined.
- Decentralization of storage. No state or person can directly influence the course of performance of the system.
What makes the creator of Bitcoin so popular is the ability to independently receive cryptocurrency. Anyone interested in this area can take part in the creation of new coins and become rich over time. The main point is to adhere to the basic security rules when creating a bitcoin wallet, and storing savings in it.
The mined or purchased digital coins can be spent on goods or services, saved in the wallet in anticipation of the continued growth of the rate, or exchanged for real money (as needed). In any case, Bitcoin has shifted to a recognized means of payment. It is accepted by several countries as a legitimate currency (Japan, USA, Canada, Great Britain, Germany, Denmark, Sweden, Australia, Singapore, Czech Republic).
