Commodity Blog

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The History of the Bitcoin

May 1, 2013 at 12:03 by Nicholas Gager

Bitcoin is one of the first implementations of a concept called crypto-currency; crypto-currency is currency that is decentralized from a central government. The reasoning behind this decentralization is to keep the government from mass producing the currency avoiding inflation, and keeping the users of Bitcoins as anonymous.

The code for Bitcoin originated from a developer under the pseudonym of Satoshi Nakamoto in 2009. Little is known of Satoshi Nakamoto; Nakamoto claimed in a blog post to be a male at the age of 37 and living in Japan, which was met with great skepticism due to his use of English and his Bitcoin software not being labeled or documented in Japanese. Some conspiracy theorist believe that Nakamoto is actually a front by the United States Federal Government to make more money.

After its initiation into the market the Bitcoin has been steadily growing with over 1000 businesses accepting it by October of 2012, with only one major vunerablity ever exposed but within a week the problem was resolved and the security of the system restored.

Bitcoin is a volatile commodity where large shifts in price are to be expected; one of the largest drops in Bitcoin history occurred on the 10th of April in 2013 where the price dropped from $266 to $105.

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