Bitcoin throuh the years
Compared to most other market, Bitcoin has so far only had a short life. However, within those few short years, the virtual currency has gone from almost completely unknown, to headlines on a daily basis.
So, let’s look at how the story unfolded:
2008 – The Legend of Satoshi Nakamoto
The legend goes something like this; Back in 2008, Satoshi Nakamoto, or someone working under that alias, allegedly started the bitcoin concept by publishing a paper outlining the concept of Bitcoin. He paper addressed the issue of double spending, meaning that Bitcoin technology would avoid the currency being copied and spent twice.
2009 – Bitcoin goes public
For the first time, Bitcoin software becomes available to the public. The first block is mined – it was called Genesis. Bitcoins are created through a process called Mining. All Bitcoin transactions are recorded and verified on the blockchain.
The first ever bitcoin exchange rate is setup towards the end of 2009 and Bitcoin has a value just like a traditional currency. Here in 2009 Bitcoin’s value is $1 = 1309 Bitcoin
2010 – Bitcoin buys Pizza
A Florida programmer paid 10,000 bitcoins for 2 pizzas worth around $25. This was the first example of Bitcoin being used in the real world. Later this same year bitcoin was hacked, which drew attention to its security issues – a key weakness for Bitcoin then and still today. 2010 was certainly the year of bad press and more negative headlines, which suggested Bitcoin could be used to fund terrorist groups kept the crypto currency massively out of favour
2011 – Dollar Parity
In 2011, the value of Bitcoin equalled that of the US dollar. Later this year bitcoin was worth $31. 25% of the projected total of 21 million bitcoins have now been mined. It was also around this time when encrypted currencies in general started to catch on and alternatives were popping up, such as Litecoin.
2013 – Security Issues; Price Crashes
The security of Bitcoin was under scrutiny in 2013 after a robbery and security breach once again highlighted one of the cryptocurrency’s biggest weaknesses. Bitcoin tumbled from $17.50 to just $0.01. 2013 also saw issue the first bitcoin regulation from the US Financial Crimes Enforcement Network.
2014 – Mt.Gox disappears along with 850,000 bitcoins
By 2014 there was an increased understanding and desire to regulate bitcoin. Perhaps not so surprising after the world’s largest bitcoin exchange Mt.Gox suddenly went offline and 850,000 bitcoins were never seen again.
2016 – Booming Bitcoin
Bitcoin jumped 54% across the year, outperforming all traditional currencies. This was the year that the bitcoin began to seriously establish itself.
2017 – Legitimacy and $20,000
Bitcoin’s value soared from $997 to over $19,661 and at the same time its popularity increased exponentially. This was the year the currency grabbed headlines; it was listed on two futures exchanges, namely the CBOE and CME, increasing legitimacy.
2018 – Regulation
Even just two months in, it is clear that this year will be about regulation for Bitcoin. Whilst increased regulation initially caused a huge selloff in Bitcoin taking it to just shy of $6000, investors are starting to see regulation could help Bitcoin become mainstream.