The first Bitcoin exchange site and how the value of Bitcoin was determined - New Liberty Standard - 5050 Bitcoins sold for 5 Dollars
Nandibear.com
by Nandi Bear
November 10, 2017 - 6:56 pm
Excerpt:
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According to pages 37 thru 39 of Nathaniel Popper's book it was October, 2009 when the first Bitcoin exchange site, New Liberty Standard, went online.
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...The Bitcoin forum went online in the fall of 2009 and soon attracted a few regulars. One of them, who called himself NewLibertyStandard, talked about the need for a website where people could buy and sell Bitcoins for real money. Martti [Malmi] had been talking to Satoshi [Nakamoto] about something similar, but he was all too glad to help NewLibertyStandard. In the very first recorded transaction of Bitcoin for United States dollars, Martti sent NewLiberty Standard 5050 Bitcoins to use for seeding the new exchange. In return Martti got $5.02 by Paypal.
...This trade raised the obvious question of how much a Bitcoin should be worth. Given that no one had ever bought or sold one, NewLibertyStandard came up with his own method for determining it's value - the rough cost of electricity needed to generate the coin, calculated using NewLibertyStandard's own electricity bill. By this measure, one dollar was worth around one thousand Bitcoins for most of October and November 2009.
...Read the entire article at: https://nandibear.com/the-first-bitcoin ... -5-dollars