In less than 10 years, Bitcoin has evolved from concept to a niche digital currency and is now making bold strides in becoming a globally accepted currency. It’s always a good idea to understand what you are investing in. The Bitcoin price history has certainly been an exciting one to date.
Here are 6 key milestones in Bitcoin price history:
2009 – First 50 Bitcoin mined, first exchange launched
Satoshi Nakamoto, who is the Bitcoin inventor, mined the first 50 coins on January 3, 2009. In October of the same year, the first Bitcoin exchange website (New Liberty Standard) is launched in the US. They were selling 1,309.03 Bitcoin for just $1.00.
2010 – First Bitcoin sold
Hanyecz Jacksonville becomes the first person to use Bitcoin as a currency. He traded 10,000 Bitcoin for two pizzas. This is, therefore, the first valuation of Bitcoin. Since the pair of Pizzas cost him $25, the value of Bitcoin then was $0.0025.
2011 – First angel investors
The first angel investors came on board in 2011. Roger Ver was among the first investors to make a huge purchase. His inaugural purchase was worth $25,000. As more investors put in their money, the value of Bitcoin steadily rose until it hit the $1.00 mark.
2012 – Bitcoin hits $100 for the first time
On April Fools’ Day in 2012, Bitcoin value hit $100 for the very first time. A week later, the price doubled to $200. This was fuelled by the Cyprus banking crisis. The government had suggested punitive taxes on banks and this led many citizens to purchase Bitcoins en masse.
2013 – Bitcoin drops to $67 then rises to $1000
The first major price drop happened in 2013 when Bitcoin dropped from $200 to $67 in just one day. The leading Bitcoin exchange at the time (Mt Gox) shrugged off the panic as a technical glitch. Within a week, the prices rose back to $200. November of the same year, the prices soared to $1,000 propelled by an avalanche of Chinese investors trying to make their money untraceable.
2017 – Japan legalizes it
On April Fools’ Day in 2017, Japan legalized Bitcoin as a currency and this made its value appreciate drastically. By June 15, the value had reached $3,000 before dropping by 19%. Morgan Stanley analysts advised people to stay away from Bitcoin causing it to plummet to below $2,000 in a single day in July. November of the same year saw the prices soar to an all-time high of $16,000 before dropping following South Korea’s decision to regulate its usage.
There are two important things we can learn from the Bitcoin price history. Firstly, prices fluctuate drastically when major events affecting the cryptocurrency industry occur. Secondly, the Bitcoin price may fluctuate wildly but the value of Bitcoin has been shown to ultimately rise. It is, therefore, a good idea to avoid panic in the event of a drastic fall in prices. If you exercise patience, you will likely reap impressive profits in the long term.