Happy Genesis Block Day!

The launch of the main network of the Bitcoin cryptocurrency was quiet and casual on 01/03/2009. On this day, the creator of the cryptocurrency, hiding under the pseudonym Satoshi Nakamoto, mined 50 BTC

Recall how it was

White Paper BTC appeared on October 31, 2008. It laid out a technical vision for the development of cryptocurrency. Its main functions and tasks. However, the motives that prompted Nakamoto to create Bitcoin are still unknown.

The commentary contains words from The Times of January 3rd: "Chancellor on brink of second bailout for banks." On this occasion, two hypotheses are put forward:

  • Nakamoto is a resident of the UK.
  • Bitcoin is a great alternative to banks.

There are several interesting points about the genesis block. For example:

  1. Its hash contains 2 more zeros than is required for such an early block.
  2. 6 days passed between the first and second blocks of the blockchain. Typically, the block generation interval is 10 minutes.
  3. The first 50 bitcoins mined cannot be spent due to the special generation method.

The first transaction in the amount of 10 bitcoins took place on the network on 01/12/2009. Sender - Satoshi Nakamoto. The recipient is a programmer and one of the first BTC users, Hal Finney.

Disputes over the date of generation of the genesis block

  • First hypothesis. The genesis block was mined on January 3, and then, until the 9th, Nakamoto tested the software. Therefore, the second block appeared only after 6 days.
  • Second hypothesis. The Genesis Block was mined on January 9, but was recorded retroactively to link it to the Times article.
  • Third hypothesis. The hash of the first block was so low that it took 6 days to mine it. In this case, the date of generation is still recorded on January 3, 2009.

The first hypothesis seems likely. The fact is that the first version of the cryptocurrency software (Bitcoin 0.1) was published on the 9th.

Perhaps, on January 9th, Nakamoto cleared the code from test blocks. I took the first one created on January 3 as a basis. The most popular cryptocurrency began its history from him.

Reasons for creating Bitcoin

According to one of the hypotheses, the impetus for the development of Bitcoin was the financial crisis, which erupted just on the eve of 2009.

During 2007-2008, the largest investment institutions collapsed - banks, funds. Production activity decreased, prices for products and raw materials fell. Chaos and unemployment reigned in many countries. The economy was undermined.

Bitcoin with its anonymity, instant transfers, apoliticality and lack of government regulation has become an excellent alternative to fiat funds.

Today, with its value steadily approaching $35,000, we see that Satoshi Nakamoto has made a real breakthrough. In 2020, the price of bitcoin has increased by 365%. Its capitalization is $643.9 billion. We hope that in 2021, bitcoin awaits an even more impressive future.

Happy Genesis Block Day!