Bitcoin Price: How it got here, and where it is headed.
The only way you haven’t heard of cryptocurrencies is if you have been living under a rock. What started as an idea in 2008 has today become a market with over a billion dollar turnover. The one that started it all, and the forerunner: Bitcoin. Bitcoin Price has only soared since then.
It all started in 2008 with a paper published by Satoshi Nakamoto (which till date is a pseudo-name for the inventor(s) of Bitcoin. A person or a group, no one knows) stating a new peer-to-peer transaction currency, a truly decentralized system free from the clutches of private banks or the government. The paper talked about an e-currency that is traded and maintained by users themselves. In 2009, this idea was implemented across the internet and was named Bitcoin.
Bitcoin Price History Chart
Today, one single Bitcoin price is more than 8500 dollars. Baffled?! Well, Bitcoin price is showing no signs of slowing down, as the market share of Bitcoin is increasing at a staggering rate. If you want to know about the creator of Bitcoin, Satoshi Nakamoto, you’ll be surprised as there isn’t much know on the internet, or anywhere else for that matter. However, here is the Wikipedia to know more: https://en.wikipedia.org/wiki/Satoshi_Nakamoto
But that doesn’t mean that Bitcoin is moving forward without a captain at its helm, because Bitcoin is fully decentralized and the software that keeps everything together, called Blockchain (Blockchain Technology Explained: The Backbone to Cryptocurrency), is peer-reviewed. By a decentralized peer-to-peer system, two users can send or receive Bitcoins without the money being handled by a third entity. In real-world cases when a transaction takes place, the third entity is the bank who oversees the transaction. With Bitcoins there are no taxes levied no matter how large the transaction amount. This has given rise to many other cryptocurrencies in the market – Ethereum, Litecoin, and Ripple to name a few popular ones.
If you want to know more about Bitcoin price, its past, present and the future, you are at the right place; we will look into factors that led such a surge in Bitcoin price, and how it moulds the future for itself and other cryptocurrencies.
Bitcoin in 2009
Although introduced in 2009, Bitcoin saw sustainable growth only from the year 2011. This was because in the year 2009 Bitcoin wasn’t available on any exchange platforms, making its value $0 in the first year. Come 2010, the highest recorded price of bitcoin was $0.31! Yes, it never touched the one dollar mark in 2010.
This makes us wonder, what exactly decides a Bitcoin’s value? The answer is quite simple; it is the same that determines gold’s value – Supply and Demand. When we study the reason behind a shiny metal being valued this high, we find it is because of the following factors: The amount of Gold in the world is finite, and the more that’s being mined, the more we get to the point of exhaustion. The supply and demand trend that drives the price of gold is the same trend that drives Bitcoin price.
There are only 21 million Bitcoins ever to be mined, and 16 million of them are already mined (Satoshi Nakamoto holds 1 million Bitcoins – roughly 7 billion dollars). Now that Bitcoin is getting praises for relative stability and liquidity when compared to the dollar, more people want it in Bitcoins. Hence the demand rises, pushing up the price.
It was in 2011 that bitcoin hit the $1 mark.
Bitcoin Price Variation From 2012 to 2015
It is in this 3-year period that we see a positive approach from companies and individuals alike. At the end of 2015, i.e., on 29th December 2014, we are looking at a Bitcoin price of $302! The reason for such an increase in traction is because the general public began showing interest towards this digital money. A series of events also played a part in getting the prices up:
- WordPress started accepting Bitcoin on November 15, 2012
- Massive investments were made on Bitcoin from China
- The fall of Mt. Gox on February 27, 1014.
- Dell started accepting Bitcoin on July 18, 2014
- Paypal’s subsidiary Braintree started accepting Bitcoin on September 8, 2014
- Microsoft started accepting Bitcoin on December 11, 2014
As the tech and internet giants showed open arms to people dealing in Bitcoins, the new market was formed. More people began researching and educating themselves about Bitcoin. On December 4, 2013, we saw Bitcoin price to be more than $1147, which is a record that was not surpassed until 2017.
The terrible Mt. Gox hack and collapse, and other high profile hacks that happened during the span ranging from 2012 to 2015, hit Bitcoin price hard, but never did bitcoin’s value dip beyond a safe limit. Bitcoin prices, however, plummeted after the Mt. Gox attack which led to a 62% loss for the investors at the time.
Bitcoin price variation from 2015 to present
With the current inclination towards Bitcoin, its value is on a steady rise. From 2015 we have seen a sharp rise in just two years. To put everything into context, Bitcoin price on November 24th, 2014 was $375 as compared to $8,201 which was recorded on 24th, 2017. On 29th November, 2017, just 5 days later the price of Bitcoin had crossed $10,000!
There are again, many factors that played their part in increasing the bitcoin price to new heights.
- January 26, 2015: Coin base starts Licensed US exchange, enabling a platform for new buyers.
- September 18, 2015 – US regulator declares Bitcoin as a commodity
- October 31, 2015 – The Economist featured Bitcoin on its front page
- November 3, 2015 – Unicode accepts the ‘Bitcoin Sign’ giving it an official symbol of representation
- April 4, 2006 – Official Launch of OpenBazaar
- April 27, 2016 – steam Accepts Bitcoin
- January 3, 2017 – Bitcoin reaches the 1000$ mark the second time in 3 years
- April 1, 2017 – Japan accepts Bitcoin as a means of legal tender
- November 19, 2017 – Bitcoin gets to the 8000$ club after a dip in November
- November 29, 2017 – Bitcoin crosses the 10,000$ mark!
The overwhelming reception garnered by Bitcoin has inspired many other cryptocurrencies to spring up during this time span. The market share increased and Bitcoin proved itself worthy of standing strong. Even through recessions and market crashes that severely affected even the dollar.
Bitcoin: Beyond 2017
Bitcoin is now (at the time this article was written) standing at its all-time high price that is close to $11,000. According to major cryptocurrency exchanges, the momentum isn’t slowing down. The user base is growing along with the market share. The biggest concern related to Bitcoin is an event that is dubbed “Bitcoin Bubble”, which is predicted to happen when the trust in Bitcoin fades.
But then again the chances of such an event might only happen far into the future because of the active mining community in Bitcoin, who are putting more Bitcoins into circulation every day. With modern conglomerates showing support for Bitcoin, the confidence in this cryptocurrency is being etched in stone.
If you are trying your hand at Bitcoin trading for investment, there’s no better time than now because of the cryptocurrency exchanges working around the clock to make transactions easier and efficient.