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Cultural Background Of Bitcoin And Bitcoin

Decent Essays
Literature Review

Introduction

In 2008, a group of people whose were allegedly led by Satoshi Nakomoto, designed a digital currency, called Bitcoin coins. (Jacobs, 2011) There are no known facts about the identities of these individual nor the size of this group. Most likely, the size of this group is relatively small. (McCallum, 2014) The concept of virtual or digital currency is not original nor only inclusive to Bitcoin. For example, Online retailer Amazon released Amazon coins in 2013. (Yahanpath & Wilton, 2014) The unique features about Bitcoin are sacristy, decentralization, and anonymity. Since 2008, for every 10 minute, 50 BTCs will be created and rewarded to Bitcoin miners. Every four year, the production of BTCs will be reduced
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Table 1
Bitcoin Milestones (Parthemer & Klein, 2014)
Time Bitcoin Milestones
2008 Patent application submitted
1/12/2009 First bitcoin transaction
10/5/2009 Exchange rate established (US$1=1,309.03 BTC, or $.00076)
5/22/2010 First real world transaction—in Jacksonville, bitcoin is used to pay for pizza
12/8/2010 First mobile bitcoin transaction
7/20/2011 Bitcoin app for iPad released
June 2012 Coinbase – a Bitcoin wallet and platform founded – san Francisco, CA
January 2013 Bitcoin reaches $13 US
4/10/2013 Bitcoin reaches $266 US
5/2/2013 First bitcoin ATM unveiled – San Diego, CA
8/9/2013 Bloomberg get bitcoin ticker
11/10/2013 Subway starts accepting bitcoin (Allentown, PA)
11/19/2013 Bitcoin rises above $1,000(tops out at 1,242)
12/5/2013 China’s Central Bank bans bitcoin transactions
Summer 2014 Bitcoin worth approximately $650

Mechanism and Features of Bitcoin

Bitcoin is a peer-to-peer networking system which is similar to Napster. Everyone can download the applicable software on his or her computer or laptop for free and becomes a part of community. In Napster, the users can download the music file. In Bitcoin, the uses can receive bitcoins, BTCs. Each BTC contains a string of combination of numbers and letters. This string which ranges from 26-35 characters is named as Bitcoin address which is unique and is recreated at every transaction. (Bitcoinwiki, 2015) By utilizing combination of public and private key cryptology, the senders can transfer
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