In 2008, Satoshi Nakamoto posted a paper describing the Bitcoin protocol on the internet.[1][2][3][4]
In 2009, the Bitcoin network came into existence with the release of the first open source Bitcoin client and the issuance of the first bitcoins and started Cryptography. [[5]][2][6][7][8]
2009-01-03 - "Satoshi Nakamoto" mines the first block of bitcoins ever (known as the "genesis block"), which had a reward of 50 bitcoins.
2010
The prices for the first bitcoin transactions were negotiated by individuals on the bitcointalk forums. One notable transaction involved a 10,000 BTC pizza.[2]
On 6 August, a major vulnerability in the Bitcoin protocol was spotted. Transactions weren't properly verified before they were included in the transaction log or "block chain" which allowed for users to bypass Bitcoin's economic restrictions and create an indefinite number of bitcoins and virtual currency market.[[9]][10][11]
On 15 August, the major vulnerability was exploited. Over 184 billion bitcoins were generated in a transaction, and sent to two addresses on the network. Within hours, the transaction was spotted[12][13] and erased from the transaction log after the bug was fixed and the network forked to an updated version of the Bitcoin protocol. This was the only major security flaw found and exploited in Bitcoin's history.[10][11]
2011–2012
In June 2011, Wikileaks[14] and other organizations began to accept bitcoins for donations. The Electronic Frontier Foundation temporarily suspended bitcoin acceptance, citing concerns about a lack of legal precedent about new currency systems, and that they "generally don't endorse any type of product or service."[15] The EFF's decision was changed in 17 May 2013.[16]
In late 2011, the exchange rate of bitcoin crashed from over $30 in June to below $2 in October.
On 23 December 2011, Douglas Feigelson of BitBills files a patent application “Creating And Using Digital Currency” with the United States Patent and Trademark Office, an action which is contested based on prior art in June 2013.[17][18]
In January 2012, Bitcoin was featured as the main subject within a fictionalized trial on the CBS legal drama The Good Wife in the third season episode "Bitcoin for Dummies". The host of CNBC's Mad Money, Jim Cramer, played himself in a courtroom scene where he testifies that he doesn't consider bitcoin a true currency, saying "There's no central bank to regulate it; it's digital and functions completely peer to peer".[19]
In October 2012, BitPay reported having over 1,000 merchants accepting Bitcoin under its payment processing service.[20]
2013
February
The Bitcoin-based payment processorCoinbase reported selling $1 million in bitcoins in a single month at over $22 per bitcoin.[21]
The Internet Archive announced that it is ready to accept donations as bitcoins and that it intends to give employees the option to receive portions of their salaries in Bitcoin currency.[22]
March
The Bitcoin transaction log or "block chain" temporarily forked into two independent logs with differing rules on how transactions could be accepted. The Mt.Gox exchange briefly halted Bitcoin deposits and the exchange rate briefly dipped by 23% to $37 as the event occurred[23][24] before recovering to previous level of approximately $48 in the following hours.[25]
In the US, the Financial Crimes Enforcement Network (FinCEN) established regulatory guidelines for "decentralized virtual currencies" such as Bitcoin, classifying American "Bitcoin miners" who sell their generated bitcoins as Money Service Businesses (or MSBs), that may be subject to registration and other legal obligations.[26][27][28]
April
Payment processor BitInstant and Mt.Gox experienced processing delays due to insufficient capacity.[29]
On 10 April, the bitcoin exchange rate dropped from $266 to $76 before returning to $160 within six hours.[30]
Bitcoin gained greater recognition when services such as OkCupid and Foodler began accepting it for payment.[31]
May
On 15 May 2013, the US authorities seized accounts associated with Mt. Gox after discovering that it had not registered as a money transmitter with FinCEN in the US.[32][33]
The US-based bitcoin company Coinbase announces a $5 million Series A investment, the largest funding round for a bitcoin company.[34]
A project under way in Kenya is linking Bitcoin with M-Pesa, a popular mobile payments system, in an experiment designed to spur innovative payments in Africa.[38]
July 30, 2013—The Foreign Exchange Administration and Policy Department in Thailand stated that Bitcoin lacks any legal framework and would therefore be illegal, which effectively banned trading on Bitcoin exchanges in the country.[39][40] According to Vitalik Buterin, a writer for Bitcoin Magazine, "Bitcoin's fate in Thailand may give the electronic currency more credibility in some circles." But he was concerned it didn't bode well for Bitcoin in China.[41]
As of July 2013, BitPay handled bitcoin transactions for more than 4,500 companies.[41] and lots of those companies (eg. BitcoInvest) are running online business world wide.[[42]]
August
Federal Judge Amos Mazzant of the Eastern District of Texas of the Fifth Circuit ruled that bitcoins are "a currency or a form of money" (specifically securities as defined by Federal Securities Laws), and as such were subject to the court's jurisdiction.[43] The case, brought by the U.S. Securities and Exchange Commission, is ongoing.[44]
Germany's Finance Ministry subsumed Bitcoins under the term "unit of account"—a financial instrument—though not as e-money or a functional currency, a classification nonetheless having legal and tax implications.[45]
Two companies, Robocoin and Bitcoiniacs announce that the world's first Bitcoin ATM will launch October 29 in Vancouver, BC, Canada, allowing clients to sell or purchase Bitcoin currency at a downtown coffee shop.[49][50][51]
