Since the beginning of 2021, the volatility of Bitcoin has been extremely high. To a person unfamiliar with the cryptocurrency industry, this instability may seem risky. However, surprising investors is a common situation for Bitcoin.
In this article, we will review the main ups and downs of the asset and follow the dynamics of the BCT rate from the time of its creation until today. Let's start!
Bitcoin Price History for Years
Bitcoin history began in August 2008, when the domain name bitcoin.org was registered.
Later that year, someone using the pseudonym Satoshi Nakamoto published a document titled 'Bitcoin: A Peer-to-Peer Electronic Payment System'. In it, he described how the future cryptocurrency would work.
In 2009, the mining of criptomoedas. However, Bitcoin was not sold anywhere. However, there was no negotiation of BTC cryptocurrencies. Technically, the price of Bitcoin in 2009 was $0.
Here is the graph of Bitcoin peak prices from 2009 to 2021. Still, keep reading for more detailed information!
Throughout 2010, Bitcoin failed to reach the $1 mark, but the price started to rise. The funniest event that year was when American Laszlo Hanyecz bought two pizzas for 10.000 BTC (so 1 BTC was worth $0,0025). If Laszlo had kept that amount of bitcoins for another ten years, then by 2021 he would have over $450 million.
Also, in 2010, the notorious Mt.Gox cryptocurrency platform appeared, which would later become a target for hackers.
2011 was a turning point for the BTC: in our history of the BTC index over the years, this year it occupies a more prominent place than 2017.
First, Bitcoin finally managed to hit the $1 mark. After highly specialized publications Slashdot and Hacker News wrote about the cryptocurrency, Bitcoin.org has enjoyed a wave of new Twitter users.
In early 2011, some unusual events took place. From February 25th to 27th, the Bitcoin network hashrate dramatically increased from 401 GH / s to 628 GH / s. As of March 1st, the hashrate has dropped to 392 GH / s and then increased to a record 774 GH / s.
Hashrate mining is a key security metric. The more hashing (computing) power on the network, the greater its security and overall resistance to attack.
What's so unusual about that? The point is that the hashrate is an indicator of how quickly mining hardware in blockchain networks solves a cryptographic puzzle.
Simply put, an increase in hashrate means an increase in the number of miners in the market.
This abrupt leap could be explained by the fact that someone was using a supercomputer or some kind of network bot. He would later be called a 'mysterious miner' in the cryptocurrency community.
Thus, 'mysterious miner' became the reference point for the gradual growth of the BTC network hashrate, subsequently increasing it to unimaginable 15,8 TH / s.
On April 16, 2011, TIME mentioned Bitcoin for the first time, dedicating an entire article to it with the title 'Online Cash Bitcoin Could Challenge Governments, Banks.' In early June of the same year, the price of BTC soared to nearly $32 in six days, but then dropped to $10.
In the same month, the popular WikiLeaks resource began accepting bitcoin donations.
On June 19, 2011, Mt.Gox was hacked, causing the Bitcoin price to drop from $17 to $0,01.
This caused financial damage to the accounts of 60 users, totaling more than $8,7 million.
A week later, trading on Mt.Gox resumed and the drop in price after the hack became the biggest in Bitcoin history.
In 2012, the price of Bitcoin dropped to $4,6, but rebounded to $13,44 in one year. In the same year, the first halving in Bitcoin history took place.
In 2013, Bitcoin hit the $1.000 mark. On November 30, 2013, the price of BTC hit its first impressive high of $1.153. The BTC repeated it just a few years later — on January 5, 2017.
Bitcoin: 2014 and 2015
After a great year of 2013 for the cryptocurrency industry, a culminating event in Bitcoin's criminal history took place.
In February 2014, the Mt.Gox website was hacked again. This time, 744 bitcoins were stolen — this is an all-time record and the biggest hack.
As a result of the invasion, Mt.Gox filed for bankruptcy, creating panic in the Bitcoin market.
From that moment on, the first prolonged decline in the price of BTC began commonly called the cryptocurrency winter.
2016 was marked by yet another halving, the first Bitfinex hack with 120 bitcoins stolen and the announcement by Craig Wright, who proclaimed himself Satoshi Nakamoto.
By the way, Wright is still suing the developers of Bitcoin Core and Bitcoin Cash, who deprived him of access to two cryptographic wallets as a result of the Mt.Gox hack.
It is a turning point in the history of the BTC rate. In early 2017, Bitcoin was still worth $960. In September, it hit the $5.000 mark and, on December 17th, the BTC price peak was recorded at the $19.483 mark. Bitcoin's market capitalization that year exceeded $330 billion.
Earlier this year, Bitcoin was worth $13.800 — and that was the maximum price per coin at the time. By the end of the year, it was trading at around $3.800.
This year was remembered for the crash of the BTC and the following winter of the cryptocurrency. On January 17, 2018, the currency rate dropped to $9.800.
On Jan. 30, Facebook, Twitter and Google banned advertising of cryptocurrencies, ICOs and binary options on their platforms. After that, the price of BTC continued to fall.
In the summer of the same year, Facebook reconsidered its attitude towards banning advertising in cryptocurrency and allowed it, but in moderation. However, this did not help the currency market to recover in value.
By the end of 2018, the BTC rate had dropped almost 80% compared to the same period in 2017. Miners began to sell their machines and mining farms as they brought losses.
In June 2019, Bitcoin tried to overcome the bearish crisis but failed to deal with resistance at the $13.785 level.
Legal issues, the US Securities and Exchange Commission (SEC) struggles with Bitcoin-ETF and hopes to launch the institutional BTC service Bakkt has become the main topic in the community.
O Bakkt it was finally released in September, but did not attract much attention from institutional investors, causing it to drop from $10.036 to $6.657 in just a few months.
The year 2020 allowed the cryptocurrency market to stabilize and grow, despite the global economic crisis associated with Coronavirus.
Bitcoin and other cryptocurrencies seemed to go against all traditional assets and bounced back when markets fell.
In January, the BTC was trading at $7,2K in February — at $10,5K, but then a sharp drop to $3,8 followed. During the year, the price rose and, by December 2020, the coin was worth around $19.000.
There were several reasons for Bitcoin's massive growth. First, the US dollar money supply grew 22%.
And as trading activity has significantly slowed down due to Coronavirus, this has led to a currency devaluation.
In this context, institutional investors started investing in Bitcoin. Thus, the Ruffer company invested 2,5% of its equity in currency.
In a letter from the British investment fund to its investors, it was said that this measure was necessary as a guarantee against the devaluation of the world's fiat currencies.
In 2020, one of the largest payment systems, the PayPal, allowed the use of cryptocurrencies for payments on its platform. This solution met a great demand, so the company had to increase the operating limit several times.
The growth of the first cryptocurrency continued into 2021. In addition, Bitcoin was setting value records almost every month.
As of mid-January, 1 BTC was $40.700, on February 20, the peak price was $57.600, on March 13—$61.100 on April 13—$63.600.
However, after that, the BTC dropped $14 — the currency was trading at $49,2K, and had risen to $51,3 by mid-May. As of May 17, Bitcoin was worth about $42,5k.
BTC volatility depends largely on news from companies and banks. Tesla announced that it has purchased $1,5 billion worth of bitcoins — the price has gone up.
Shortly thereafter, the company changed its mind about accepting bitcoins as a means of payment — the value of BTC dropped by 10%.
Even so, the situation has changed significantly in recent months. On October 20, the price of Bitcoin renewed its historic record from mid-April and surpassed nearly $67.000.
The Bitcoin rate rose sharply after the first exchange-traded fund (ETF), based on Chicago Mercantile Exchange (CME Group) Bitcoin futures, began trading in the US on October 19th. The current price of BTC is $61.904.
How Much Will Bitcoin be Worth in 2030?
Predictions for the future value of Bitcoin vary based on who makes the estimate. According to Jeremy Liew, partner at Lightspeed Venture Partners, Bitcoin could reach $500.000 per currency by 2030.
According to the June 2020 Crypto Research Report, cryptocurrency could exceed $397.000 by 2030. Others predict Bitcoin is just a bubble and they're worthless, predicting too low a value in a decade.
From its inception, cryptocurrency has positioned itself as a supranational hedge against local economic instability and government-controlled fiat currency. According to reports, there is a period of increased economic activity on the Bitcoin blockchain after an economy hits hurdles due to government policy.
Countries like Venezuela, which have experienced hyperinflation of their currencies, have seen huge increases in the use of Bitcoin as a means of transaction as well as a store of wealth.
This has led analysts to believe that the cryptocurrency price increases and the global economic turmoil are related.
Will the situation change significantly in 2022? Well, only time will tell. Today, we consider the history of Bitcoin price changes.