A glance at bitcoin development

2008: Pseudonymous developer Satoshi Nakamoto posted a paper describing the bitcoin protocol on the Internet. Nakamoto called it a peer-to-peer, electronic cash system.

2009: Bitcoin network established; first open source bitcoin clients joined the network and first bitcoins issued. Bitcoin creation and transfer is based on an open source cryptographic protocol and is not managed by any central authority. Each bitcoin is subdivided down to eight decimal places, forming 100 million smaller units called satoshis. Bitcoins can be transferred through a computer or smartphone without an intermediate financial institution.

2010: First bitcoin transactions were negotiated by individuals on the bitcoin forums. One transaction was a pizza sold for 10,000 bitcoins.

2010: A major security flaw found and exploited.

2011: First bitcoiners in China started "mining" and trading bitcoins.

2012: More bitcoin trading platforms established and increasing number of stores around the world said they would accept bitcoin payments.

2013: Bitcoin prices fluctuate violently. On April 10, the bitcoin exchange rate dropped from $266 to $76 before returning to $160 within six hours.

2013: Market valuation of the total stock of bitcoins approached $1 billion. Critics said bitcoin prices are a bubble. Some said it's a Ponzi scheme, constantly relying on new customers who effectively pay existing ones.

2013: Speculation in bitcoins began in China.

- Wu Yiyao

(China Daily Africa Weekly 06/07/2013 page1)