Bitcoin Market – the first Exchange
The cryptocurrencies’ common infrastructure is an exchange. BTCMEX takes a look at a history of exchanges and Bitcoin Market in today’s Throwback.
Today a crypto exchange is a space that provides possibilities for acquiring, selling, and gambling with digital assets. But it hasn’t been always so, let’s take a look at the rise of the industry when Bitcoin’s – the first successful cryptocurrency’s whitepapter was released by Satoshi Nakamoto.
Besides mining, the only way to obtain Bitcoin in the very early days was by trading it on forums or IRC – Internet Relay Chat. The first exchange went live in March 2010, following the idea that was introduced on Bitcointalk forum by “dwdollar” in January. The message said:
“I am trying to create a market where Bitcoins are treated as a commodity. People will be able to trade Bitcoins for dollars and speculate on the value. In theory, this will establish a real-time exchange rate so we will all have a clue what the current value of a Bitcoin is, compared to a dollar.”
The honor of the first Bitcoin exchange goes to Bitcoin Market. Initially, PayPal was used as a means of exchanging BTC for fiat, but a number of scams grew exponentially, so PayPal left the exchange soon. PayPal was removed from the exchange on June 4, 2011. The same day a trader reported on Bitcointalk, that a BTC was trading on Bitcoin Market at a price of $23.99.
The actual price of a single Bitcoin didn’t reach $1 until February 9, 2011. The year saw the rising interest in the cryptocurrency and trading activity. Around the world, new exchanges were opening up to allow local fiat conversion. March saw the launch of Bitcoin Brasil, with Bitmarket.eu following shortly in April.
The same year in February a deep web marketplace known as Silk Road which launched and handled the majority of crypto transactions. The first famous exchange was introduced in July 2011 and by 2014 was handling 70% of all global Bitcoin trades. It was Mt. Gox – the most iconic and infamous brand in the history of crypto.
Exchanges grew and evolved together with the industry. A new and promising crypto derivatives market can provide the highest security measures for the exchanges, like BTCMEX, today.