Do you realize how significant October is for Bitcoin? Let’s go back 16 years. On October 31, a pseudonymous developer named Satoshi Nakamoto released the groundbreaking Bitcoin whitepaper, marking the beginning of a revolution. Did he foresee how this innovation would challenge traditional finance?
Perhaps not, but one thing is certain: Satoshi was a true pioneer. Bitcoin (BTC) emerged as the leading digital currency, captivating the world with its goal of “banking the unbanked.” Several notable events and milestones have shaped the evolution of this asset and its underlying technology.
In this article, we’ll explore some of Bitcoin’s “firsts” that set the course for the crypto industry’s journey. Dive in without delay!
First On-chain Transaction:
Date: January 12, 2009
Summary: The first-ever Bitcoin transaction was between Satoshi Nakamoto and Hal Finney.
This historic transaction marked the beginning of a new era in digital finance. A transfer of 10 BTC from one wallet to another became the world’s first proof of a peer-to-peer digital transaction. This involved Satoshi Nakamoto, the pseudonymous creator, and cryptographer Hal Finney, who became the second person to download and run Bitcoin’s software. This moment was a key milestone in the emergence of decentralized financial systems.
First Commercial Bitcoin Transaction
Date: May 22, 2010
Summary:10,000 BTC were used to purchase two pizzas.
Sixteen months after Bitcoin’s launch, it was used in a real-world purchase. On May 22, 2010, Laszlo Hanyecz, a programmer from Florida, paid 10,000 BTC for two large pizzas from Papa John’s. At the time, the coins were worth about $40, but today, they would be valued at $669.3 million, and even more at Bitcoin’s all-time high. This day is now celebrated as “Bitcoin Pizza Day,” commemorating the first commercial use of BTC.
First Bitcoin ATM
Date: October 29, 2013
Summary: The world’s first Bitcoin ATM was installed in a coffee shop in Vancouver, Canada.
In October 2013, US-based company Robocoin launched the first Bitcoin ATM at The Waves Coffee House in Vancouver, Canada. The machine allowed users to exchange Canadian dollars (CAD) for Bitcoin and vice versa. During its first week, the ATM processed 348 transactions, amounting to $100,000. Although the ATM was later removed when Robocoin ceased operations, Bitcoin ATMs have proliferated globally, with over 38,160 installed across 67 countries.
First Bitcoin Exploit
Date:August 15, 2010
Summary: The “overflow bug” led to the creation of over 184.4 billion BTC.
One of the most shocking incidents in Bitcoin’s history occurred when an anonymous hacker exploited a bug in the blockchain’s “block 74638,” creating over 184.4 billion BTC. Bitcoin’s total supply is limited to 21 million, making this a significant issue. Fortunately, Satoshi Nakamoto quickly addressed the problem, initiating a soft fork to restore the blockchain. This swift action prevented any major disruption in the market.
First Bitcoin Exchange Hack
Date: June 13, 2011
Summary: 25,000 BTC were stolen from Mt. Gox, then the largest Bitcoin exchange.
Mt. Gox, once the largest Bitcoin exchange, experienced its first major hack on June 13, 2011. Hackers exploited vulnerabilities, stealing over 25,000 BTC, worth $400,000 at the time. This incident marked the beginning of a series of security challenges for crypto exchanges and significantly affected Bitcoin’s 2011 bull run.
First Legal Adoption**
Date: September 7, 2021
Summary: El Salvador became the first country to recognize Bitcoin as legal tender.
In 2021, El Salvador made headlines by becoming the first nation to adopt Bitcoin as an official currency. The government launched a digital wallet called Chivo to facilitate BTC transactions. President Nayib Bukele, a strong Bitcoin advocate, later initiated a plan to purchase 1 BTC per day, even after market dips. However, this decision has been controversial, with the International Monetary Fund (IMF) recommending the reversal of Bitcoin’s legal status.
First Macro Recognition
Date: August 19, 2013
Summary: Germany recognized Bitcoin as “private money” and a “unit of account.”
Germany became the first country to give Bitcoin a legal status by recognizing it as a “unit of account,” or private money, under its Banking Act. This step signaled a favorable stance toward cryptocurrencies. Additionally, Germany implemented tax exemptions for crypto holdings retained for over a year, income from crypto transactions below a certain threshold, and donations, highlighting a progressive approach to digital assets.
First Bitcoin Ban
Period: December 2013
Summary: China was the first country to restrict banks from handling crypto transactions and prohibited entities from dealing with Bitcoin exchanges.
On December 5, 2013, China’s central bank and regulatory authorities issued a notice banning banks from facilitating Bitcoin transactions. Although citizens could still trade cryptocurrencies, entities were instructed to avoid dealing with Bitcoin exchanges. Over the years, China intensified its crackdown, banning ICOs in 2017 and later prohibiting crypto trading and mining activities altogether by September 2021. The ban remains in place to this day.
These key “firsts” have been instrumental in shaping Bitcoin’s journey, each event marking a pivotal moment in the evolution of the crypto industry.
