BitCoin History

A cryptographic system for untraceable payments was first described by David Chaum in 1982.[10] In 1990 Chaum extended this system to create the first cryptographic anonymous electronic cash system.,[11] which became known as ecash. [12] In 1998 Wei Dai published a description of an anonymous, distributed electronic cash system which he called "b-money".[13] Around the same time, Nick Szabo created bit gold.[14][15] Like Bitcoin, Bit gold was a currency system where users would compete to solve a proof of work function, with solutions being cryptographically chained together and published via a distributed property title registry. A variant of Bit gold, called Reusable Proofs of Work, was implemented by Hal Finney.[15]

In 2008, Satoshi Nakamoto published a paper[1][16] on The Cryptography Mailing list at[17] describing the Bitcoin protocol.

The Bitcoin network came into existence on 3 January 2009 with the release of the first open-source Bitcoin client, Bitcoind, and the issuance of the first Bitcoins.[18][19][20] A year after, the initial exchange rates for Bitcoin were set by individuals on the bitcointalk forums.[citation needed] The most significant transaction involved a 10,000 BTC pizza.[21] Today, the majority of Bitcoin exchanges occur on the Mt. Gox Bitcoin exchange.[6]

In 2011, Wikileaks,[22] Freenet,[23] Singularity Institute,[24] Internet Archive,[25] Free Software Foundation[26] and others, began to accept donations in Bitcoin. The Electronic Frontier Foundation did so for a while but has since stopped, citing concerns about a lack of legal precedent about new currency systems, and because they "generally don't endorse any type of product or service."[27] Some small businesses had started to adopt Bitcoin. LaCie, a public company, accepts Bitcoin for its Wuala service.[28]

In 2012, BitPay reports of having over 1000 merchants accepting Bitcoin under its payment processing service.[29]