Bitcoin is a leader in the market of cryptocurrencies with the highest price and popularity that it holds since it was introduced more than 10 years ago. The founder of blockchain that is a background platform for Bitcoin is known by the pseudonym, Satoshi Nakamoto. The rise in the value of this virtual currency caused a big hype on the global market. Bitcoin is very popular among traders and investors in recent years. Also, according to some people who are professionals in the marketing and financial sector, the price might reach $400,000 by 2025.
Furthermore, while most people have heard about blockchain and Bitcoin, many of them are not so familiar with the full potential, main features, background, and many other things related to this cryptocurrency. If you are interested to learn more about the inventor and important processes that make this coin available, visit siliconindia.com. You can find many articles related to the potential of Bitcoin if you buy it, the mining process, advantages of the blockchain system, but learning more about the history and development of it can also be of great use, especially when you want to compare some cheaper alternatives to this one. Therefore, we are going to introduce you to some of the most important facts related to the history of Bitcoin.
1. Early Development of Cryptocurrencies
While Bitcoin is the first digital asset in this form, which is using the blockchain technology, there were some attempts of creating similar units many years before the introduction of this one. The development of virtual money started in the late 90s, and some of the most popular examples are B Money, Hash Cash, Bit Gold, and more. There is also an interesting story about the founder of Bit Gold, Nick Szabo, where many people thought that he is actually a founder of Bitcoin who is hiding behind the fake name. However, he denied these rumors.
2. First Blockchain
The introduction of this advanced system was in 2008, when Satoshi, who remains anonymous in public, announced it as a new method that will provide people with the ability to make faster transactions without the need to pay high fees as in banks. Also, the process of mining started in 2009, and for a long time, that was the only method for acquiring this digital asset. During the first year, this virtual currency did not have any value yet.
3. First Bitcoin Transaction
In the first few years after creation, the price was still not determined, and there were only speculations whether it will ever become valuable or not. However, many people already started talking about the advantages of this system, and how it can become popular in the future. The first trade ever that was made with Bitcoin was when a software developer from Florida, who bought two pizzas for 10,000 BTC. He lost a fortune with that move.
4. Rise of Competition
After many people realized the real potential of decentralized systems, developers from all around the world started making their cryptocurrencies. However, Bitcoin is still the most popular one. On the other hand, there are some other successful examples like Ethereum, Ripple, Litecoin, Tron, and more. Currently, there are over a thousand different tokens available on the market. Nevertheless, many people are interested in some cheaper alternatives in hope that they might reach the value of Bitcoin in the future.
5. First Significant Fall in Price
From 2009 to 2013, Bitcoin started getting more and more expensive and popular in public. Its price was only a few dollars for a long time. However, the value started to grow at the beginning of 2013, when it was around $13. By the end of the first quarter, the value reached over $200, but it quickly fell under $100 again. The most significant fall was related to the end of 2013 when the price fell from over $1,000 to $300. During 2014, the price was oscillating between $500 and $1000. Also, during this period many people started noticing Bitcoin as a great asset for investments.
6. Global Popularity
While this currency was stable during 2015 and 2016, the year 2017 represents the most important one in the current history of Bitcoin. During this period, the value started to raise unstoppably by duplicating its price each month. The price in October was around $5,000, while the value doubled in November. That leads to the highest ever price of Bitcoin in December 2017, when it reached near $20,000. However, the price fell again significantly during 2018, and remain stable with the price of around $3.500 throughout the whole of 2018. Next year was full of ups and downs as well, while it is near its highest value in 2020, with the current price of around $18,000.
The Bottom Line
During the first trade that was made with an e-wallet, experts calculated that the price of 1BTC was around 8 cents. However, more and more people started joining the system and mining process, which lead to progress in popularity and raised awareness related to the advantages that we can have from replacing standard payment processes with this advanced method. While mining is not so profitable these days because of the halving and many upgrades that made the whole system more advanced, investing in Bitcoin and trading with it represents a great way to make a huge profit. Even though there are many speculations related to the potential value in the future, some reliable experts are predicting that the price might hit $100,000 in the next five years, and half-a-million before 2030.
However, various factors could cause both the rise and fall of its value on the market. Also, there are still no regulations related to the taxation of cryptocurrencies, which leads many people to doubt that countries will allow this system to replace existing methods. On the other hand, we can see that many countries have plans to fully implement cryptocurrencies in their economies, which will affect the increase in prices significantly.