Bitcoin Story and Historical Price
Bitcoin has an origin story like no other coin. Nobody seems to know the exact name of the creator. It is unknown whether it came from a group of people or just one person, but whoever created bitcoin went by the name of Satoshi Nakamoto.
During the recession in 2008, Nakamoto published a paper on bitcoin to a cryptography mailing list. 2008 was also the year that bitcoin.org registered as a domain. The contents of the paper essentially explained exactly how the cryptocurrency would function, but it was not until early 2009 that the first bitcoin was actually mined. It is assumed that it was created on January 3rd, 2009, and the only proof of this is a newspaper from Britain hidden in the programming of the first bitcoin. To this day nobody knows who Satoshi Nakamoto is.
The Wild Price of Bitcoin
When bitcoin first came into circulation it was essentially worthless. 10,000 bitcoins was literally the going price for a pizza, and this is known as the first bitcoin transaction ever recorded. This was in May of 2010.
So how did bitcoin make its way to the staggering price of 10,589.60 USD per coin?
Bitcoin’s past is a tale of great fluctuation. During the beginning, bitcoin was shrugged off. Only those delving in illicit activities flocked to the coin. After all, bitcoin is not backed by any nation. The price of bitcoin did not see any significant growth until the establishment of the Silk Road in 2011. The Silk Road was a marketplace where criminals flourished, and this was simply due to the fact that bitcoin made their transactions untraceable in nature.
During its use on the Silk Road bitcoin fluctuated greatly in value, but by the end of the website’s activities, the estimated value of the bitcoin in circulation was over a billion dollars. During the Silk Road, bitcoin’s price ranged between 30 cents to 30 dollars.
The price of bitcoin really began to gain steam after a major correction occurred in 2013. The going price of bitcoin climbed through the year, and in 2013 a major milestone was reached. Bitcoin reached 1,000 USD for the first time in November of that year, and this began to gain attention from investors. This may have been short-lived, but it proved that bitcoin could maintain value nobody had imagined. Although bitcoin was growing, it was still frowned upon until Mt. Gox eventually went bankrupt.
The use of bitcoin as a respected currency
Bitcoin reached another major turning point in 2014. A major company, Microsoft, announced that it would take bitcoin as payment. This was huge, and during 2015 bitcoin made it to the first page of the Economist.
All of this added hype around bitcoin led to the currency gaining a foothold in the market, and in 2017 bitcoin started to look like it does today. This was largely in part to the Winklevoss twins, who attempted to register bitcoin as the Bitcoin Exchange-Traded Fund with the United States Securities and Exchange Commission. This attempt to legitimize was rejected, but it led to more and more people taking the currency seriously. By the end of the year, bitcoin reached 20,000 dollars per coin, despite being shot down by JP Morgan. This was short-lived, and by 2018 bitcoin fell back down to 13,000 dollars.
Where is bitcoin trending today?
2018 was a much less volatile year for bitcoin. This was due to the fact that many hearings were involved in regard to cryptocurrencies in the United States and across the globe. Through 2018 there were nine more attempts to legitimize the coin on the standard market, but all these attempts failed causing the price to continue to fluctuate. 2019 has been a popular year for bitcoin, and crypto alike, as it has climbed back up to 10,000 dollars as of August 2019.
Bitcoin History Price and Important Events
October 5th, 2009: First Bitcoin Exchange rate 1 USD = 1,309.03 BTC
Bitcoin in 2008
- October 31: Bitcoin white paper is published by Satoshi Nakamoto
Bitcoin in 2009
- January 3: Genesis block – block “0” is mined
- January 9: Bitcoin is released – Version 0.1
- January 12: The first Bitcoin transaction, between Satoshi and crypto activist, Hal Finney
- October 5: First bitcoin price – 1 USD = 1,309.03 BTC
- December 16: Bitcoin version 0.2 is released
- December 30: First Bitcoin difficulty increase
Bitcoin in 2010
- May 22: First Bitcoin transaction for goods. Laszlo Hanyecz spent 10,000 Bitcoins on pizza
- July 12: Bitcoin price increases from 0.008 USD to 0.08 USD due to a mention of Bitcoin v0.3 on slashdot.
- July 17: MtGox, Bitcoin exchange market is established
- August 15: Bitcoin bug is discovered in block # 74638
- September 18: A bitcoin mining pool, slush, mines its first block
- October 1: Open CL, the first public miner is created.
- October 7: Bitcoin price begins to climb after months stuck at $0.06 per BTC
- October 16: First Bitcoin escrow transaction between Diablo-D3 and Nanotube, two Bitcoin forum members
- October 28: First short sale of Bitcoin, 100 coins between two bitcoin forum users
- November 6: Bitcoin price reached 0.5 USD per Bitcoin at MtGox exchange, Bitcoin economy exceeds US$1 million.
- December 9: Bitcoin app for the Nokia N900 has been created
Bitcoin in 2011
- January 27: The biggest bitcoin transaction till that day, on #bitcoin-otc. 100 trillion Zimbabwe dollars worth of 4 BTC.
- January 28: 5.25 million Bitcoins have been generated, which is 25% of the total 21 million bitcoin to be released.
- February 9: On MtGox exchange the BTC and US dollar has the same value. BTC = 1$
- February 14: The first time that a vehicle, old Porsche, is being put for a sale on bitcoin exchange for 3000 BTC
- March 27: First time Bitcoin is open for exchange with GBP.
- April 16: The Time Magazine publishes an article about Bitcoin
- April 23: On MtGox exchange BTC/USD rate reaches and surpasses the USD/EUR
- June 2: On MtGox, Bitcoin reaches 10$ value
- June 8: On MtGox, Bitcoin Reaches All-Time High of 31.91$ value
- June 12: Great bubble of 2011. Bitcoin exchange rate fell back to nearly 10$, just four days after All-Time High of 31.91$
- June 13: The first bitcoin theft occurs, 25,000 BTC were stolen from a Bitcoin forum member.
- June 14: WikiLeaks accepting donation with Bitcoin
- June 19: Security issues on MtGox exchange results in fraudulent trading and the exchange was shut down for 7 days. This case forced the MtGox price down to US$17.51 to US$0.01 per BTC.
- August 20: The first Bitcoin conference held in New York City, NY.
- December 12: The biggest bitcoin fee in a single transaction, 171 BTC for block #157235
Bitcoin in 2012
- March: More than 46,00 BTC were stolen from a security breach in a web hosting company. Valued at over 228,000$,
- May 11: 18,000 Bitcoin were stolen from the bitcoin exchange, Bitcoinica
- September 3: A bitcoin exchange. Bitfloor is hacked and loses 24,000 BTC (valued at approximately US$250,000)
- September 24: An investigation of Bitcoin Savings decreased the value of Bitcoins by as much as 30%.
- November 15: WordPress accepts Bitcoin as a form of payment.
- November 28: The first Bitcoin Halving, block 210,000. Block reward decrease from 50BTC to 25BTC
Bitcoin in 2013
- February 9: Kim Dotcom, the owner of Mega (cloud storage service) began accepting Bitcoin as a payment form.
- February 19t: The 0.8 version of Bitcoin Client is released.
- February 22: Bitcoin reached $30 after the last record two years ago.
- February 28: Bitcoin new All-Time High $31.91 after “waiting time” of 601 days.
- March 18: The Financial Crime Enforcement Network (FinCEN) defines its position on virtual currencies
- March 21: New bitcoin All-Time High of $74.90
- March 28: Bitcoin’s total market cap reaches 1 billion USD.
- April 1: Bitcoin reaches $100!
- April 10: Another Bitcoin bubble – New All-Time Hight of $266
- April 20: Bitcoin crashes and losing $160 in value in one day, due to a hack on Bitcoin Central.
- May 2: The first Bitcoin ATM is represented in California.
- August 6th Federal Judge Amos Mazzant of Texas ruled that bitcoins are “a currency or a form of money”
- August 20: The Federal Ministry of Finance in Germany announces that Bitcoin is a form of private money.
- October 2: The FBI shuts down the Silk Road, seizing 3.6 million dollars worth of bitcoins.
- October 14: Baidu, China’s biggest search engine begins accepting Bitcoin
- November 6: Bitcoin reaches a New All-Time High of $269
- November 10: A Subway restaurant in Allentown, starts accepting Bitcoin
- November 17: Bitcoin sets a new record of $503.10
- November 19: Bitcoin price climbs up to a record of US$1242 !!!
- December 5: The People’s Bank of China bans bitcoin transactions, causing a price drop of more than 20% to below $1,000.
- December 6: Baidu stops accepting bitcoins after the People’s Bank of China ban.
- December 17: Bitcoin crashes to $500 after China’s Central Bank ban bitcoin transactions
Bitcoin in 2014
- January 28: Vice-president of the Bitcoin Foundation, Charlie Shrem, arrested over allegations of money laundering in connection with Silk Road
- February 10-12: Bitcoin historical decrease of 30% to $600 due to problems with transactions in several exchanges.
- July: Dell and Newegg are accepting bitcoin as a form of payment
- November 5: Buttercoin, an open-source digital trading engine, US venture-backed bitcoin exchange, is launched.
- December Microsoft began accepting bitcoin to buy Xbox games and Windows software.
Bitcoin in 2015
- January 4: Bitstamp exchange hacked. 18,866 bitcoins were stolen by a hacker worth $5.2 million dollars.
- June 3: New York state releases a set of rules to regulate bitcoin and digital currency businesses in the state of New York.
- August 15: Bitcoin core developers, released the Bitcoin XT – a separate version of the bitcoin client software.
- September 18: For the first time the CFTC (Commodity Futures Trading Commission) declared bitcoin as commodities.
- October 31: A British publication published an article called: “The Trust Machine” which featured the bitcoin on the front page of the economist.
- November 3: The Unicode committee accepted the Bitcoin currency symbol
Bitcoin in 2016
- January: The Bitcoin network speed exceeds one exahash/sec.
- February: A Bitcoin block size discussion meeting has been enclosed over thirty individuals, service suppliers, and bitcoin developers.
- March: Japan’s cabinet acknowledges Bitcoin and virtual currencies as a payment
- April: Steam service starts accepting Bitcoin as a form of payment for video games.
- May: An Australian computer scientist, Craig Steven Wright declared that he was Satoshi Nakamoto through a journal post.
- July: In Argentina Uber accepts Bitcoin due to Argentina’s government blocked the use of credit card from dealing with Uber.
- August: About 120,000 Bitcoin were being stolen from the Bitcoin exchange Bitfinex.
- September: 771 Bitcoin ATMs worldwide.
- November: Swiss railway (SBB) allows purchase bitcoin on their vending ticket machine