For close to a decade, it has been impossible to ignore the impact of Bitcoin on the world of finance. Even now, as Bitcoin shows signs of plateauing, its revolutionary origins still ripple across the tech and financial landscapes. To chart its rise and to uncover its founding pioneers, here is the story of Bitcoin from 2009 to 2017.
I. Bitcoin and Its Pioneers: A Look Back
Bitcoin was launched in 2009 and since then, it has become one of the most talked-about and revolutionary technologies in the world of finance and beyond. The cryptocurrency is underpinned by an ingenious and decentralized structure that has had an increasingly profound impact on how people perceive money. But the cryptocurrency phenomenon cannot just be attributed to one individual, and it is the pioneering group of developers, activists, and entrepreneurs that are responsible for the success of Bitcoin.
The Bitcoin story began with Satoshi Nakamoto, the individual or group whose identity still remains a mystery to this day. Although no contact with Satoshi has been made in the past 10 years, their creation has become increasingly popular and gained momentum all over the world. Satoshi is also credited with proposing a number of other cryptocurrencies such as Litecoin, Peercoin, and Namecoin.
Moreover, other innovators have made significant contributions to Bitcoin’s success. Hal Finney was an early adopter of Bitcoin and an esteemed developer who worked in collaboration with Satoshi. He was also known for his work on designing the proof-of-work system for Bitcoin. Meanwhile, another important figure in the Bitcoin landscape is Nick Szabo, an early contributor to the cryptocurrency ecosystem. He is credited for proposing Bit Gold (an early predecessor to Bitcoin) and developing the idea of smart contracts.
- Satoshi Nakamoto: Creator of Bitcoin and proposed cryptocurrencies
- Hal Finney: Early adopter and developer
- Nick Szabo: Early contributor and proposed Bit Gold
II. 2009 – The Launch of Bitcoin and Its Pioneers
The Early Days of Bitcoin
In 2009, the world’s first cryptocurrency, Bitcoin, was launched. It was a decentralised digital currency built on a new technology called blockchain, a distributed ledger system created by its pseudonymous inventor, Satoshi Nakamoto. The early Bitcoin network was small, with only a handful of users. Gradually, people began to take notice of the new currency, and it soon gained attention from the media and tech communities.
The Bitcoin Pioneers
The earliest adopters of Bitcoin were pioneers, who saw its potential to disrupt traditional finance. Among them was Ross Ulbricht, creator of online black market ‘Silk Road’, which took advantage of Bitcoin’s anonymity to facilitate transactions. Others included computer scientists Andreas Antonopoulos and Gavin Andresen, and early Bitcoin investor Roger Ver, who founded Bitcoin.com. All these people helped to shape what Bitcoin is today, and their contributions laid the foundation for the cryptocurrency revolution.
III. Early Bitcoins Owners: Tales of Risk and Reward
Early bitcoin owners are an interesting breed. They took risks that the majority of the world didn’t even consider at the time. These risks often paid off, with some of them becoming overnight millionaires due to their investments.
Few people knew who these early adopters were, but recent interviews have shed light on some of their stories. From anonymously joining the discussion boards about the future of digital money to mining and investing hundreds or even thousands of dollars in the currency, theirs is a wild journey worth sharing.
- Jeff Garzik: Jeff purchased 1,000 bitcoins in the summer of 2010. He paid only $0.06 per coin, and made a total investment of $5,000. By 2013, these coins were worth $1.2 million.
- Roger Ver: Roger was one of the earliest backers of Bitcoin, having purchased coins in 2011. He purchased both coins from Chinese miners, and later invested in the Bitcoin exchange Mt. Gox.
- Erik Voorhees: Erik was an early miner, and by the summer of 2011 he had accumulated over 200,000 BTC. He used the coins to buy physical goods and services, as well as investing in various Bitcoin related businesses. By the end of 2013, each of his coins were worth over $1,200.
IV. 2017 – Cryptocurrency’s Mainstream Moment
Two Trends Pushed Cryptocurrency Into the Mainstream
2017 was the year of cryptocurrency. Two trends, increased public interest and a boom in the number of coins available, pushed cryptocurrency into mainstream usage. Prospective investors could join the market, while retailer and other businesses were more able to accept digital currency.
The initial coin offering (ICO) trend was especially significant for creating new cryptocurrencies. Alternative blockchains offered new kinds of digital coins and tokens which expanded beyond the use case of Bitcoin and Ethereum. Several successful projects launched in 2017, their ICO fundraising contributing to the total market capitalization of digital currencies.
- Increased public interest sparked new investment
- The number of coins available increased
- Alternative blockchains and digital coins emerged
- The ICO trend was a key contributor
Cryptocurrency Adoption Expanded
During the 2017 cryptocurrency boom, the number of retailers or other businesses willing to accept digital payments increased. Major companies such as Microsoft, Expedia, and Overstock began accepting Bitcoin as payment.
Digital currency was no longer just a subject of speculation or investment, and everyday usage began to become more mainstream. This helped to further increase public interest in cryptocurrency and contributed greatly to its rapid appreciation during the year.
- Several major companies accepted digital payments
- Cryptocurrency moved beyond speculation and investment
- Usage of digital money entered the mainstream
- Public interest in cryptocurrency increased
This story of the “pioneers” of Bitcoin began in 2009 and, in a short time, has generated wealth, disruption and dreams of a new financial ecosystem. What 2017 brings for Bitcoin and the cryptocurrency industry as a whole, one can only guess. But for these digital pioneers, the future is now.