In 2009, someone bought 5,050 BTC for five dollars. This was #Bitcoin’s first recorded deal and the moment its market value began to emerge. Artwork by Limbo Mask (@Limbo_Mask Over on X). In Bitcoin’s earliest days, there was no way to buy coins. There were no onramps, no exchanges and no market price. The only way to acquire BTC was to mine it or to persuade another early user to send some. That worked for a short time, but as interest grew, not everyone wanted to mine, and network difficulty was rising. A solution was needed. A pseudonymous forum user called New Liberty Standard created the first #Bitcoin exchange in October 2009. It was simple and manual but revolutionary. Users could buy or sell BTC using #PayPal, with trades handled directly by email or #Bitcointalk messages. There were no accounts, no order books and no automated systems. Everything was peer to peer, just like Bitcoin itself. On October 12 2009, @Martti Malmi made the first known bitcoin to fiat sale, trading 5,050 BTC for 5.02 dollars. The exchange rate was calculated from the electricity cost of mining. Martti did not need the money. He made the trade to support New Liberty Standard and prove that the exchange worked. At that time, #NewLibertyStandard was the only counterparty, acting as both market maker and escrow using his own BTC and dollars. This small transaction carried enormous significance. It showed that an online exchange could function. More importantly, it proved that bitcoin could be exchanged for real money. It set the first precedent for Bitcoin’s economic value and opened the door for every exchange that followed. Read the full article:

History of Bitcoin

Putting a Price on Bitcoin

In 2009, Martti Malmi made the first Bitcoin-to-fiat trade, selling 5,050 BTC for $5.02 via PayPal on New Liberty Standard—the first Bitcoin exch...

Artwork: Putting a Price on Bitcoin by Limbo Mask (@Limbo_Mask). With thanks to AnimusArt (@AnimusArt). Appears in the History of Bitcoin Collector’s Book and on our interactive timeline.

Before #hashtags, podcasts and meetups, early #Bitcoin believers connected in a simple chat room. IRC was where the first Bitcoin community met, collaborated and kept the network alive. Artwork by Zigor (@zigor). IRC was a real time communication protocol created in 1988. Its decentralised server structure resonated with open source communities and later with Bitcoin itself. It was the natural place for early users to gather, troubleshoot software and support each other as they figured out how to run the network. Within 24 hours of Bitcoin’s launch, the #bitcoin channel appeared. Logs show #HalFinney joining on January 10 2009 and receiving a message with two peers’ IP addresses, one believed to be Satoshi’s node. These early channels were not just for conversation. They were essential for peer discovery. Without IRC, users had no way to know which nodes they could connect to. By mid 2010, the #bitcoindev channel became the informal headquarters of early development. It supported node bootstrapping and helped developers find and fix bugs. Satoshi often lurked quietly, preferring Bitcointalk for public posts, but he monitored IRC closely. When an early miner bragged in #bitcoin-dev about high hashpower, Satoshi appeared on the forum to ask what hardware he was using, a clue that he learned about GPU mining through IRC. IRC also documented the rise of early mining giants. ArtForz regularly shared updates about his hashpower, noting 2 Ghash per second in September 2010 and over 15 Ghash per second by December, at one point mining more than 1,200 BTC per day. IRC became a place to share ideas as well as hashrates. It was here that Namecoin, the first Bitcoin spin off, was announced in November 2010. In Bitcoin’s early months, IRC was vital. The Bitcoin client relied on IRC bootstrapping to help users find peers. Once the network grew, this was no longer necessary. Version 0.6.x disabled IRC bootstrapping by default, and by version 0.8.2 it was removed. But for a brief moment, IRC was Bitcoin’s first social hub and the technical bridge that helped the network come alive. Read the full article:

History of Bitcoin

Bitcoiners Meet Bitcoiners

In Bitcoin’s early days, the #bitcoin IRC channel on Freenode connected miners in real time, becoming the first hub for peer discovery and networ...

Artwork: Bitcoiners Meet Bitcoiners by Zigor (@zigor). Appears in the History of Bitcoin Collector’s Book and on our interactive timeline.