The Inception Of Bitcoin

Satoshi Nakamoto the developer of blockchain and Bitcoin claimed that work on the writing of the code began in 2007. The inventor of Bitcoin knew that due to its nature, the core design would have to be able to support a broad range of transaction types.

Nakamoto created a website with the domain name and continued to collaborate with other developers on the bitcoin software until mid-2010. Around this time, he handed over control of the source code repository and network alert key to Gavin Andresen, transferred several related domains to various prominent members of the bitcoin community, and stopped his involvement in the project. Until shortly before his absence and handover, Nakamoto made all modifications to the source code himself.

The inventor left a text message in the first mined block which reads ‘The Times 3 January 2009 Chancellor on brink of second bailout for banks’. The text refers to a headline in The Times published on 3 January 2009. It is a strong indication that the first block was mined no earlier than this date. The genesis block has a timestamp of 18:15:05 GMT on 3 January 2009. This block is unlike all other blocks in that it doesn’t have a previous block to reference. This required the use of custom code to mine it. Timestamps for subsequent blocks indicate that Nakamoto did not try to mine all the early blocks solely for himself.

As the sole, predominant early miner, the inventor was awarded bitcoin at genesis and for 10 days afterwards. These bitcoins remain unspent since January 2009 till date (24 Feb 2018). The public bitcoin transaction log (blockchain) shows that Nakamoto’s known addresses contain roughly one million bitcoins and this is worth Billions. This makes him the first bitcoin Billionaire on Earth. However because his Idea was to create a free monetary system for the people of the world he never used his bitcoins for personal gains and they are still viewable on the transparent blockchain ledger created by him.

Much of the mystery surrounding Nakamoto involves his motivations. Why would someone go to the trouble of creating a detailed and brilliant decentralized currency, only to later completely disappear from the public view?
A closer look at one of Nakamoto’s original postings on the proposal of Bitcoin sheds some light on his possible motivations.

In February 2009, Nakamoto wrote, “The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts.”

Bitcoin enthusiasts suggest the timing of Bitcoin’s emergence is a clear indication of its raison d’être: The currency, which was created in the years following the housing bubble burst in 2007, might have been invented as means of disrupting the corrupted banking system.

If Satoshi Nakamoto is one guy, and is still alive, it’s safe to assume he has no desire to touch his cryptocurrency stash. Based on what little is known of bitcoin’s creator, it’s hard to imagine him developing a sudden urge for the high life. Whatever Satoshi’s aspirations, becoming a richest playboy is not one. Given that Satoshi Nakamoto owns more bitcoin than anyone else in the world or we could say satoshi owns more % of bitcoin than USA has ever held in Gold(USA has around 4.5% of global gold where as Satoshi owns more than 5% of global bitcoins), the last thing he needs is more bitcoin. But that’s exactly what’s been happening, every week, for the past eight years. Not only has the value of Satoshi’s holdings been increasing, but so has their number. There’s another reason why Satoshi’s digital wealth is growing because people keep sending him bitcoin.

1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa is the address associated with the genesis block. It was here that the first 50 bitcoins ever issued were sent on 3rd January 2009. The transaction is marked as “No Inputs (Newly Generated Coins)”. The 50 BTC this address contains, like that in most of the addresses attributed to Satoshi, have never been moved. As a consequence, one would expect its balance today to read 50 BTC. In actual fact, bitcoin’s genesis address currently contains more than 66.7 BTC, sent over the course of 1,140 transactions. To date, bitcoin’s maiden address has received 16.7 BTC in tips, worth around a quarter of a million dollars as off end of 2017.

22 thoughts on “The Inception Of Bitcoin

Leave a Reply

Your email address will not be published.