Bitcoin Foundation Incorporated
The Bitcoin Foundation is officially incorporated in Washington D.C., attempting to give Bitcoin a public face.
On September 27, 2012, the Bitcoin Foundation was officially incorporated as a non-profit organization in Washington D.C., culminating months of planning by industry leaders including Gavin Andresen, Charlie Shrem, and Peter Vessenes. The organization's stated mission was to 'standardize, protect, and promote' the use of Bitcoin cryptographic money worldwide. This move was a direct attempt to professionalize the image of Bitcoin, which was suffering from associations with the Silk Road and money laundering.
The Foundation's structure was modeled after the Linux Foundation. It sought to provide a stable salary for core developers (specifically Gavin Andresen at the time), ensuring that protocol development could continue independently of corporate influence. It also aimed to serve as a unified voice for the media and regulators, who were increasingly asking, 'Who is in charge of Bitcoin?'
While the incorporation was a milestone for institutional legitimacy, it also institutionalized the conflict within the community. The inclusion of Mark Karpeles (CEO of Mt. Gox) on the board would prove disastrous in hindsight. Furthermore, the very existence of a 'Foundation' led to accusations of centralization, with critics arguing that Bitcoin did not need a lobbying arm. Despite its later controversies and decline, the Foundation's launch in late 2012 was crucial in coordinating the response to the 2013 regulatory crackdown and financing the early development of the Bitcoin Core client.