Over the past decade, virtual currencies have become a hot investment. In 2013, Forbes called Bitcoin the best investment of the year, but in 2014, Bloomberg labeled it the worst. With all the buzz around it, it’s easy to get confused about what Bitcoin really is. To clear things up, let’s take a casual stroll through the history of Bitcoin, the first and most popular cryptocurrency.
How Bitcoin Got Its Start
Back in 2009, a mysterious person (or group) named Satoshi Nakamoto created Bitcoin. They posted a white paper called “Bitcoin: A Peer-to-Peer Electronic Cash System” in October 2008. This paper introduced the idea of a digital currency that didn’t rely on governments, using digital signatures and coins instead of regular money like the US Dollar. It also unveiled the blockchain, a public ledger that keeps track of all Bitcoin transactions, making everything super transparent.
– Bitcoin’s Journey and Price StoryThe First Bitcoin Exchange (2009): The New Liberty Standard Exchange recorded the first Bitcoin exchange in late 2009. People on a Bitcoin forum traded 5,050 Bitcoins for a measly $5.02, which makes the initial price around $0.00099 per Bitcoin.
– First Real-Life Bitcoin Purchase (2010): On May 22, 2010, someone made history by buying two pizzas for 10,000 Bitcoins. Yep, you read that right.
– First Bitcoin ATM (2013): Bitcoin started to gain popularity beyond tech enthusiasts, and Vancouver installed the world’s first Bitcoin ATM. This allowed folks to swap regular money for crypto.
– Mt. Gox Hack (2014): The largest Bitcoin exchange at the time, Mt. Gox, got hacked, losing over 700,000 Bitcoins. They had to declare bankruptcy, and Bitcoin’s price dropped by almost 90%!
– The Crypto Rollercoaster (2017 – 2018): In 2017, regular people started noticing cryptocurrencies, leading to a massive Bitcoin boom. But in 2018, the crypto bubble burst, and Bitcoin lost about 65% of its value in just one month.
– The Pandemic Hit (2020): When COVID-19 hit, the stock market and Bitcoin prices took a hit too. On March 12, 2020, Bitcoin dropped from $7,935 to $4,826, a drop of over 39%.
– All-Time High (2021): Thanks to the Federal Reserve pumping money into the market and optimism about COVID-19 vaccines, Bitcoin reached its highest price ever, soaring over $68,000.
– Fed Tightening and FTX Woes (2022): Towards the end of 2021, the Federal Reserve started taking money out of the market. This caused risky assets like Bitcoin to drop in price. Plus, high-profile problems like the FTX incident made investors nervous, pushing Bitcoin below $16,000.
– Bitcoin’s Comeback (2023): Despite the Securities and Exchange Commission’s crackdown, Bitcoin’s price started rising again in 2023. It gained over 50% by mid-June, thanks to the broader tech stock rally.
Summary
Throughout its life, Bitcoin has seen its fair share of ups and downs, but many believe it’s here to stay along with its blockchain technology. So, the Bitcoin rollercoaster ride continues!
So what do you think, is Bitcoin really here to stay, or is it just another investment bubble that is all hype with no actual utility? Let us know Here!