The History of Bitcoin $BTC
Bitcoin $BTC seems to be a common subject of discussion in 2018, but just how much has it changed since its first year of existence, 2009?
This chart highlights the substantial growth for Bitcoin over its lifetime so far...
Here is an overview of the figures...
Let's take a look at the timeline of Bitcoin…
Bitcoin was not traded on any exchanges in 2009. Its first recorded price was in 2010. Technically, Bitcoin was worth $0 in 2009 during its very first year of existence!
Bitcoin's price never topped $1 in 2010! Its highest price for the year was just $0.39!
Several early adopters were wise or fortunate enough to earn, buy or mine vast quantities of Bitcoin before it held significant value. The most famous of these is Bitcoin’s creator, Satoshi Nakomoto. Satoshi is thought to hold one million Bitcoins or roughly 4.75% of the total supply (of 21 million). If Satoshi were to dump these coins on the market, the ensuing supply glut would collapse the price.
Things stayed pretty steady until 2014 where Bitcoin saw a slight increase. The reason for this is said to be that Cypriots had their savings were confiscated in early 2013. This event was reported as causing a price surge, as savers rethought the relative risks of banks versus Bitcoin.
2015 saw the price of Bitcoin drop, this is said to be due to Greece, where strict capital controls were imposed in 2015. Greeks were subjected to a daily withdrawal limit of €60. Bitcoin again demonstrated its value as money without central control.
Soon after the Greek crisis, China began to devalue the Yuan. As reported at the time, Chinese savers turned to Bitcoin to protect their accumulated wealth.
It wasn’t then until 2017 that we saw the dramatic increase in Bitcoin price, but why?
Bitcoin suddenly became a trend with a number of investors clamoring for crypto-currency of all sorts. While digital money was once seen as the province of cranks and computers geeks, it’s now so mainstream that investors see it as a new asset class and are creating hundred million dollar hedge funds to acquire it.
Meanwhile, others see digital currencies as an asset like gold, which can hold its value amid times of government instability. Recent political upheaval in Brazil and the United States, which led to drops in the dollar and the real, may have contributed to the recent uptick in Bitcoin buying.
Finally, Bitcoin may be benefiting indirectly from a recent explosion in the value of other digital currencies like Lumens, Ethereum and Litecoin. While it’s possible to buy these currencies with dollars or other traditional currencies, it’s often simpler to use Bitcoins (which is the easiest digital currency to acquire) to buy them. In other words, more people may be buying Bitcoin as a vehicle to invest in more exotic currencies.
This being said, it is clear to see that Cryptocurrencies are still very volatile, making it crucial for traders and investors to keep one-step ahead of the latest market moves.
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* Charts sourced from buybitcoinworldwide.com