Bitcoins: The first step towards a cashless society – The Market Mogul

Satoshi Nakamoto first introduced the concept of Bitcoins in 2007, though it was suspected that this was a pseudonym for a group. Bitcoins were designed to be the world’s first decentralised currency that incorporated digital coins capable of being sent through the internet. It originally attracted interest from only small online businesses because the coins were transferred ‘person to person’ via the internet. This bypassed the banks, had much lower transaction charges and the currency could be used in any country.

Bitcoins could be created by anyone running a free application called a Bitcoin miner. The mining process was designed to become more difficult for each block of created coins, to ensure Bitcoins were introduced into the market at a predicted and limited rate. This enabled effective price control. Once a transaction was verified by the Miner,each transaction was permanently and anonymously stored in the Bitcoin network.

The aim of Bitcoins was to create a global market that can be used for a variety of purchases including basic necessities and gifts. They can also be traded for various currencies including Dollar and Euro.

In 2008 Neal Kin, Vladimir Oksman and Charles Bry filed an application for an encryption patent for the Bitcoin creation software. They denied any connection to the work in 2007 and version 0.1 was released in 2009. The software included a Bitcoin generation system which could create 21million Bitcoins by 2040.

The first formal attempt to establish Bitcoins as a regulated currency came when New Liberty Standard published a Bitcoin exchange rate that established the value of a bitcoin at US$1 = 1,309.03 BTC. This was calculated using an equation that includes the cost of electricity to run a computer that generates Bitcoins. Following this, established the first bitcoin currency exchange market

The first ‘real-world’ transaction took place when Florida

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