How does it work & where did Bitcoin come from?
The first information describing Bitcoin’s function was released in November 2008 to the internet under someone going by the alias name of Satoshi Nakamoto. The software itself was released in 2009.
There is not a great deal of information available about who Satoshi Nakamoto may be or from what country he may reside. The general public consensus is that the creator or creator’s of Bitcoin could be any individual or individual’s of any nationality.
After the aftermath of the 2008 Financial Crisis people from all over the world felt the effects of the weakening economy. Cryptographers were looking for a solution as an answers to the financial meltdown. They wanted to develop a worldwide currency that would duplicate Gold over the internet and bypass banking institutes and governments controls.
The protocol software that was released in 2009 over the world wide web for Bitcoin was set up to be a Deflationary Currency with no more than 21 million Bitcoin being released worldwide with the last one being released in the year 2140.
The protocol was set up beginning with 50 Bitcoin being released every 10 minutes and that amount going in half every 4 years until the year 2140. Unlike our current inflationary fiat currencies this means that less and less of an asset is made available to the world market as more and more people around the world start using the asset which will cause the price to rise and the value of the asset increases.
The value of the first recorded Bitcoin transaction happened in 2010 when a Papa John’s pizza business accepted 10,000 Bitcoins for 2 pizza’s. The value of Bitcoin was soon set to fractions of a cent a Bitcoin in 2010. One Bitcoin is now worth hundreds of dollars!