Bitcoin: Difference between revisions
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In 2004, [https://koinly.io/blog/hal-finney-bitcoin/ Hal Finney] developed [https://nakamotoinstitute.org/finney/rpow/ RPOW (Reusable Proof of Work)] to facilitate the exchange of proof-of-work tokens. Its novel design served mainly as a proof of concept rather than a | In 2004, [https://koinly.io/blog/hal-finney-bitcoin/ Hal Finney] developed [https://nakamotoinstitute.org/finney/rpow/ RPOW (Reusable Proof of Work)] to facilitate the exchange of proof-of-work tokens. Its novel design served mainly as a proof of concept rather than a | ||
Blockpitt, “Bitcoin’s History & Evolution: From Cypherpunks to Cryptographic Milestones, Achieved, Retrieved March 2025. | <sup>6</sup> Blockpitt, “Bitcoin’s History & Evolution: From Cypherpunks to Cryptographic Milestones, [https://www.blockpit.io/blog/bitcoin-history-evolution Achieved], Retrieved March 2025. | ||
<sup>7</sup> DailyCoin, “David Chaum: The Man Who Inspired Satoshi Nakamoto” Achieved, Retrieved July 2024. | |||
<sup>8</sup> CoinMarketCap, “Satoshi Files: Wei Dai’’, Achieved, Retrieved 2023 | |||
<sup>9</sup> Atlas21, “E-gold: the story of the first digital currency backed by gold” Achieved, Retrieved November 2024 | |||
mainstream currency. [https://www.paypal.com/in/home PayPal], initially envisioned in the late 1990s as a global digital currency, faced regulatory and practical obstacles and instead evolved into the widely used online payment platform. Collectively, these early efforts, despite challenges or incomplete implementation, laid the groundwork for Bitcoin and the broader ecosystem of decentralized digital currencies. | |||
== 2008–2009: Creation == | |||
Bitcoin was conceptualized following the 2008 financial crisis, designed as a decentralized [https://www.investopedia.com/articles/forex/121815/bitcoins-price-history.asp digital currency] alternative to traditional banking. [https://www.investopedia.com/articles/forex/121815/bitcoins-price-history.asp 10]Early interest came primarily from tech enthusiasts, [https://www.analyticsinsight.net/definition/cyberpunk cyberpunks], and Libertarians intrigued by its unique decentralized monetary system. | |||
Initial [https://learnmeabitcoin.com/technical/transaction/#:~:text=A%20bitcoin%20transaction%20is%20just,puts%20new%20locks%20on%20them. Bitcoin transactions] had no formal market value; coins were exchanged casually for experimentation and curiosity-driven purposes. The absence of exchanges limited mainstream adoption, keeping Bitcoin essentially a niche project within early adopter communities. | |||
Growing awareness and the eventual [https://www.oanda.com/us-en/trade-tap-blog/asset-classes/crypto/oanda-bitcoin-price-history-key-market-events-data-charts-insights-volatility/ creation of exchanges] allowed Bitcoin to transition from experimental software to recognized financial innovation. | |||
Revision as of 12:00, 18 November 2025
| Bitcoin | |
|---|---|
| |
| Commonly used logo of bitcoin | |
| Denominations | |
| Plural | Bitcoins |
| Symbol | ₿ (Unicode: U+20BF ₿ BITCOIN SIGN) |
| Code | BTC |
| Precision | 10⁻⁸ |
| Subunits |
59 Markets.com, “Crypto market analysis: What are the features of cryptocurrency?” Archived. Retrieved October 2025 |
| Development | |
| Original author | Satoshi Nakamoto |
| White paper | Bitcoin: A Peer-to-Peer Electronic Cash System |
| Implementation | Bitcoin Core |
| Initial release | 0.1.0 / 9 January 2009 (16 years ago) |
| Latest release | 30.0.0 / 11 October 2025 (34 days ago) |
| Code repository | GitHub |
| Development status | Active |
| Written in | C++ |
| Source model | Free and Open Source Software |
| License | MIT Licence |
| Ledger | |
| Ledger start | 3 January 2009 (16 years ago) |
| Timestamping scheme | Proof of work (partial hash inversion) |
| Hash function | SHA-256 (two rounds) |
| Issuance | Decentralized (block reward), Initially ₿50 per block, halved every 210,000 blocks |
| Block reward | ₿3.125 (as of 2025) |
| Block time | 10 minutes |
| Circulating supply | ₿19,934,271 (as of 14 October 2025) |
| Supply limit | ₿21,000,000 |
| Valuation | |
| Exchange rate | Floating |
| Website | bitcoin.org |
Bitcoin (abbreviation: BTC; sign: ₿) is a digital form of money without any physical existence. Unlike traditional currencies, it operates without central control or banks. Transactions occur over a decentralized network of thousands of interconnected computers, known as nodes.1
Based on early concepts of digital money, the origins of cryptocurrency trace back to 1983, when David Chaum introduced eCash and launched Digicash in 1989.
In 2008, Satoshi Nakamoto published Bitcoin: A Peer-to-Peer Electronic Cash System 2, introducing blockchain technology and decentralization. Bitcoin’s network launched in 2009 with the mining of the Genesis Block.
Key milestones were achieved: the first real transaction on May 22, 2010; surpassing $1 in 2011; and widespread recognition by 2013. From 2021 to 2025, Bitcoin achieved global legitimacy through SEC approvals of ETFs, PayPal integration, and U.S. regulatory frameworks under President Donald Trump.3
Bitcoin transactions occur on a decentralized blockchain network where users transfer digital currency between wallets. Verified by miners using cryptography and proof-of-work, each transaction ensures transparency, security, and independence, allowing peer-to-peer payments without banks or intermediaries.4
History
Bitcoin, often called ‘digital gold’, has transformed from a simple concept into a global financial revolution. Its significance reaches far beyond market trends or public debates.5
1 BBC, “What is Bitcoin? An eight-step guide to cryptocurrency”, Achieved referred to as ‘digital gold,’ has evolved Retrieved July 2020.
2 Bitcoin.Org “Bitcoin: A Peer-to-Peer Electronic Cash System, Nakamoto, Satosh”, Achieved, Retrieved October 2008.
3 U.S. News & World Report L.P, “The History of Bitcoin’ Achieved, Retrieved September 2025
4 GeeksforGeeks, “How Bitcoin Transaction Works”, Achieved, Retrieved September 2021
5 Token Metrics, “ The History of Bitcoin - A Journey from Ideology to Adoption”, Achieved
Tracing Bitcoin’s evolution reveals more than just technological progress; it tells the story of society’s changing perception of money, trust, and value. From its mysterious creation to its worldwide influence, Bitcoin’s journey embodies innovation, resilience, and the future of decentralized finance.
Background
Pioneering projects shaped the development of decentralized digital currency, each introducing innovative concepts while facing challenges like double-spending and regulatory hurdles. In the 1980s, David Chaum’s DigiCash implemented protocols for anonymous transactions. Its centralized structure and financial difficulties prevented widespread adoption, ultimately leading to bankruptcy.7
In the late 1990s, Wei Dai proposed b-money, a concept for a decentralized digital currency. Although never implemented, its ideas on proof-of-work and anonymous transactions influenced later cryptocurrencies. Around the same time, Adam Back developed Hashcash, which used proof-of-work to prevent email spam. It was innovative but not intended as a monetary system.
Douglas Jackson and Barry Downey created E-gold in 1996, allowing electronic transfer of gold ownership. Its centralized design led to legal and security challenges, resulting in closure. Nick Szabo’s Bit Gold, conceived in the late 1990s, proposed a decentralized currency resembling modern cryptocurrencies. While theoretical, its concepts heavily influenced later digital currencies.
In 2004, Hal Finney developed RPOW (Reusable Proof of Work) to facilitate the exchange of proof-of-work tokens. Its novel design served mainly as a proof of concept rather than a
6 Blockpitt, “Bitcoin’s History & Evolution: From Cypherpunks to Cryptographic Milestones, Achieved, Retrieved March 2025.
7 DailyCoin, “David Chaum: The Man Who Inspired Satoshi Nakamoto” Achieved, Retrieved July 2024.
8 CoinMarketCap, “Satoshi Files: Wei Dai’’, Achieved, Retrieved 2023
9 Atlas21, “E-gold: the story of the first digital currency backed by gold” Achieved, Retrieved November 2024
mainstream currency. PayPal, initially envisioned in the late 1990s as a global digital currency, faced regulatory and practical obstacles and instead evolved into the widely used online payment platform. Collectively, these early efforts, despite challenges or incomplete implementation, laid the groundwork for Bitcoin and the broader ecosystem of decentralized digital currencies.
2008–2009: Creation
Bitcoin was conceptualized following the 2008 financial crisis, designed as a decentralized digital currency alternative to traditional banking. 10Early interest came primarily from tech enthusiasts, cyberpunks, and Libertarians intrigued by its unique decentralized monetary system.
Initial Bitcoin transactions had no formal market value; coins were exchanged casually for experimentation and curiosity-driven purposes. The absence of exchanges limited mainstream adoption, keeping Bitcoin essentially a niche project within early adopter communities.
Growing awareness and the eventual creation of exchanges allowed Bitcoin to transition from experimental software to recognized financial innovation.