Since 2008, the history of Bitcoin illustrates the meteoric rise of an open-source idea to a global financial infrastructure. As you know, its volatility is notorious, yet more than 350,000 transactions are validated every day, driven by the "unconstrained innovation" of the blockchain.
As the network matures, Bitcoin is acquiring services comparable to those of traditional banks: retail accounts offered by Circle, regulated marketplaces like Coinbase, and payment gateways such as Strike. Where did it all begin? How far will it go? Take a few minutes: we'll review everything, step by step.
What does Bitcoin mean and how does it work?
Bitcoin, network and unit of account
The term Bitcoin (capital letter) refers to the protocol and the distributed network; bitcoin (lowercase) represents the unit of account, abbreviated BTC ou XBTThis dual meaning is essential: you can therefore talk about a transfer of 0,5 bitcoin on the Bitcoin network without confusion.
A peer-to-peer architecture without central authority
The protocol is open-source and operates on an architecture peer-to-peerEach node in the network maintains a complete copy of the blockchainIt validates new transactions and relays blocks. Therefore, there is no master server and no authority can unilaterally impose changes.
UTXO addresses, keys and template
To use the network, you create a private key then derive a public address (Format beach32 ou P2PKH (depending on the circumstances). Your funds are not stored in an account but in the form of unspent transaction outputs (UTXOWhen you make a payment, your wallet selects UTXOs, references them as entries, and creates new UTXOs for the recipient and, if applicable, your delivery address.
Role of the mempool and fees
Before being mined, each transaction joins the mempool of a node: a buffer space where it waits until it is included in a block. You add frais proportional to the size (in bytes) of your transaction; the higher they are, the more incentive miners have to select it quickly.
Security through proof of work
The ultimate validation rests on the proof of work (Proof-of-Work (PoW). A block is considered definitive only after several confirmations; the probability of reorganization decreases exponentially with the block's depth. This approach provides a strong immutability : to modify the history, an attacker would have to replicate and then exceed the cumulative computing power of the network.
How are bitcoins created?
Mining and block rewards
Le minage consists of aggregating transactions in bulk, then finding a hash lower than the target set by the protocol. The first miner to achieve this broadcasts their block and receives a reward composed of the grant (new bitcoins) and transaction fees included. Since the fifth halving From April 2024, the subsidy is set at 3,125 BTC.
Mechanism of halving and limited offer
All 210 blocks (approximately four years), the subsidy is halved. Originally, in 2009, it was worth 50 BTC ; she will fall at 0 BTC around 2140. The protocol guarantees that there will be no never more than 21 million bitcoinsThis programmed scarcity fuels the argument for Bitcoin as "digital gold".
Automatic difficulty adjustment
The network aims for a average block time ten minutes. If the blocks are found too quickly, the difficulty increases; otherwise, it decreases. This automatic adjustment ensures predictable output despite fluctuations in computing power.
Mining pools and hashrate distribution
Individual competition has become unlikely with specialized equipment (ASIC), the young participants join pools The pool operator aggregates the results, finds a block more quickly, and distributes the reward proportionally to the power provided. The latest readings from Cambridge CBECI indicate that approximately 60% of global hashrate comes from renewable sources, a central point in discussions about energy footprint.
Transition to fee-based compensation
As the subsidy decreases, the transaction fees will become the main economic incentive. The occasional overloads observed during peak activity periods already demonstrate this gradual shift. Several avenues for optimization – followed, tap rootincreased use of Lightning Network – aim to maintain reasonable costs while securing the protocol in the long term.
Key milestones in Bitcoin's history
Now that you know a little more, here's an overview of the main milestones that have shaped the short history of this cryptocurrency. These milestones help us understand Bitcoin's growing importance in our increasingly decentralized society, thanks to (or because of) the internet!
August 2008
Three people, Neal Kin, Vladimir Oksman, and Charles Bry, filed a patent application for an encryption system. All three denied any connection to Satoshi Nakamoto, the alleged creator of Bitcoin. Later that month, the three also registered the website Bitcoin.org via anonymousspeech.com – a site that allows people to purchase domain names anonymously.
October 2008
Despite this, Satoshi Nakamoto publishes a document in which he reveals to the world his idea of a purely peer-to-peer electronic currency. He manages to solve the problem of copying money, thus laying the vital foundations that will allow Bitcoin to grow legitimately.
January 2009
The first block, nicknamed "Genesis," is unveiled, allowing the start of Bitcoin mining. Later that month, the first transaction takes place between Satoshi and Hal Finney, a cryptocurrency developer and activist.
October 2009
Bitcoin has value relative to traditional currencies. The New Liberty Standard establishes the value of Bitcoin at $1 = 1,309 BTC. The equation used for the calculation includes the cost of the electricity required to run the computer that created Bitcoin.
February 2010
Opening of BitcoinMarket, the first dedicated scholarship.
May 2010
Florida developer Laslo Hanyecz sends 10 BTC to a volunteer in England to buy him a Papa John's pizza, making the first real transaction in Bitcoin history.
August 2010
Bitcoin is hacked. A vulnerability in Bitcoin's value verification system is discovered, leading to the creation of 184 billion bitcoins. The price of Bitcoin collapses.
November 2010 (?)
Market capitalization exceeding one million dollars, share price at 0,50 USD.
January 2011
The Silk Road, an illegal drug supermarket It has appeared on the web. It uses bitcoin as a currency for its "untraceable" nature for buying and selling.
March – June 2011
For the first time in its history, bitcoin reaches parity with the US dollar. In June, each bitcoin is worth $31, bringing the value of all bitcoins in circulation to $206 million!
March 2012
A security breach at Linode, a web hosting company, leads to the first major bitcoin theft. More than 46 BTC worth $000 are stolen.
September 2012
Bitfloor, the 4th largest US bitcoin exchange, is hacked and loses 24,000 BTC valued at approximately $250,000. Compromised servers allow access to encrypted backup files of electronic wallet keys.
April 2013
Bitcoin surpasses $100 for the first time.
August 2013
U.S. Federal Judge Amos Mazzant said: It is clear that bitcoin can be used as currency " and " it can be used to purchase goods or services " in a case against Trendon Shavers, the "Bernard Madoff of bitcoin."
Bitcoin appears on Bloomberg terminals with the ticker XBT Currency, thus giving more institutional legitimacy to this currency.
October 2013
The FBI's closure of the illegal Silk Road marketplace caused Bitcoin to fall by 21%, then rebound by nearly 17%... and continued its rise in the following weeks.
November 2013 (?)
Bitcoin soars to over $700. Following the “Silk Road” episode, the US Senate begins a study on electronic money.
Fed Chairman Ben Bernanke gives Bitcoin his blessing. In his letter to the Senate, Bernanke states that bitcoin “ can deliver on its long-term promise, especially if the innovations promote a faster, safer and more efficient payment system"
December 2013
The People's Bank of China has banned financial institutions from handling Bitcoin transactions. This ban comes after the People's Bank of China declared that Bitcoin is not a currency "with real meaning" and does not have the same legal status as fiat currency.
Despite this, China is today the largest bitcoin trader and carries out nearly 80% of global bitcoin transactions.
February 2014
The UK's tax authority (HM Revenue & Customs) categorizes Bitcoin as a private asset or currency, meaning that no VAT is levied on its mining or trading. This is a significant step, as it represents the most progressive treatment of Bitcoin, positioning the UK government as the most forward-thinking and comprehensive in its approach to taxing this currency.
June 2014
The US government is auctioning off over 29 bitcoins seized during the Silk Road shutdown, marking the end of the case. The shutdown of Silk Road and the auction will have helped Bitcoin gain legitimacy by demonstrating that the currency is not an easy way for online criminals to circumvent the law.
From this point on, Bitcoin can no longer be considered a currency for criminals. Moreover, with the use of "blockchains" the identity of users can often be established.
July 2014
The New York State Department of Financial Services publishes the first draft of the Bit Licence, an official approval authorizing Bitcoin-related businesses to operate legally, similar to the license required for Western Union for money transfers.
At the same time, the European Central Bank recommends that European lawmakers subject cryptocurrency exchange platforms to anti-money laundering and counter-terrorist financing rules, stressing the need for international regulatory coordination.
Finally, Global Advisors is launching the first regulated bitcoin investment fund, offering professional investors for the first time a compliant vehicle to gain exposure to the digital asset.
August 2014
George Osborne, Chancellor of the Exchequer (British finance minister), demonstrated Great Britain's desire to be at the forefront of financial innovation when he buy £20 worth of Bitcoins and announces the Treasury's desire to launch a study on electronic currencies, offering companies in the sector the opportunity to come and comment on the risks and benefits of these currencies and potentially influence future government policies.
October 2014
Trading firm TeraExchange announces that the first transaction on a Bitcoin derivative has been executed on a regulated market, adding a new hedging tool for Bitcoin and instilling credibility and institutional confidence in the entire Bitcoin community.
December 2014
Microsoft now accepts bitcoin payments on its online stores.
January 2015
The New York Stock Exchange (NYSE) takes a minority interest in the bitcoin exchange platform Coinbase with the aim of bringing transparency, security and trust to Bitcoin.
May 2016
The Australian Craig Wright claims to be Satoshi; cryptographic proof is lacking.
December 2017
Le CME Hours opens regulated futures contracts.
August 2017
Activation of followed, network base lightning.
September 2021
Le Salvador adopts Bitcoin as legal tender.
January 2023
Adoption of the European regulation Mica.
January 2024
La SEC validates the first spot ETF (BlackRock, Fidelity, ARK 21Shares).
April 2024
Fifth halving : 3,125 BTC by block.
July 2025
visa et Mastercard Lightning is announcing support for certain cross-border payments.
March 2026
More than 350,000 daily transactions on the main channel, over a million via Lightning. 60% of the global hashrate powered by renewable energy.
Between revolution and caution
Le Bitcoin It has proven that a permissionless network can move billions daily. Governments accept it as legal tender, ETFs open the door to pension funds, and the European Union has enshrined it in its regulations.
However, volatility remains high. energy consumption Bitcoin is a subject of debate, and mining remains concentrated. Is it Bitcoin? store of value, speculative asset ou decentralized infrastructure Your answer will depend on your profile: saver, trader or developer.
Thinking of investing? Only allocate what you're prepared to lose, store your keys offline, and keep an eye on regulations.Bitcoin history continues to be written, block by block; it's up to you to choose whether you follow it from afar or take part in the next step.
