When did Bitcoin Start? A Brief History

Having gone through the eventful periods of ups and downs, Bitcoin has become one of the key buzzwords of the last decade. Since it has been emerged more than 10 years ago, many thought leaders from different industries lauded it as a ‘new gold’, a ‘smart currency’, and even ‘a disrupter to the traditional notions of currency’.

Today we’ll shed some light on its history and the long run from total nothing to the ‘killer’ of fiat currencies. It’s time for experienced users to refresh the mind and for newcomers to get involved. So, shall we get started?

The beginning

In the distant 2008, Bitcoin joined the digital world. In the middle of that year, the Bitcoin.org and White Paper were created. No need in third parties, proof-of-work, and anonymity – these were those initial three pillars the very essence of Bitcoin was based on. Noteworthy, the latter, anonymity, is hidden deep in the nature of the digital currency, as the person or maybe the group of people, who call themselves Satoshi Nakamoto, are still unknown for the community.

Later next year, the first-ever block of Bitcoin was mined, and the first-ever bitcoin transaction occurred. Nakamoto sent 10 BTC to noted computer programmer Hal Finney. That’s where the whole story begins. It could hardly have been imagined that just in 10 years the Bitcoin market capitalization would make it up to dozens of billion dollars.

By the end of 2009, the New Liberty Standard publishes the first Bitcoin exchange rate: $1 to be worth 1,309.03 BTC. Imagine you had bought Bitcoins at that time…

Still the immature technology

Actually, someone had managed to do it, thus having input their name in the history, the history of the notorious losers of the crypto world. In May 2010, the first-ever purchase with Bitcoins was conducted. A programmer Laszlo Hanyecz sent 10,000 BTC to a London man in exchange for two pizzas, valued at a total of $25. In honor of that purchase, the crypto world celebrates Bitcoin Pizza Day on May 22. As of today, these Papa John’s pizzas cost $38 000 000.

In February 2011, Bitcoin for the first time reached parity with the US dollar at a 1:1 ratio. This turning point in the history of the currency created a real hoopla in the media. Many instantly lauded Bitcoin as an upstart, while others realised a great perspective behind it. When there is a war in media, there is the object which is going to cut through the noise very soon.

And that’s the truth. Just in four months, Bitcoin skyrocketed from $1 to $31.91. The first prerequisites for the massive adoption and hype have appeared. The way Bitcoin was extracted, or to be accurate, mined, has attracted more and more individual players, large-scale companies and developers. Bitcoin’s success led to a rise in altcoins, which were designed to improve the mainstream cryptocurrency or to be used for other purposes.

Bitcoin went past the $200 mark for the first time ever on April 9, 2013.  The toughest period in the history of the currency starts here, in 2013. And that’s not surprising: where’s big money to be made illegally, there are many players to play on the ‘black market’. Speaking of the legal compliance and the regulatory measures of different countries, at that time, Bitcoin was mostly unregulated. Thus, it made ‘dark net’ flourish. Until the infamous dark web site, Silk Road, was shutdown and over 26,000 BTC were seized. Eventually, the price of Bitcoin dropped to $109 just in a few hours.

Just in few months, the story was seemingly forgotten, and the value of Bitcoin reached parity with an ounce of gold, over $1000. But then, the drop continued, following the news about the world’s largest Mt. Gox Bitcoin exchange that had been hacked, and then eventually suspended trading and went bankrupt.

Let’s make a pause now. The local conclusion needs to be made: Bitcoin market showed itself as an extremely volatile environment, which behaviour was, and actually is, hard to anticipate. Until 2016, market stagnated and went through a two year period of relative stability.

Here’s the Bull Run!

Many associate 2017 with a biggest bull run in the history of Bitcoin, and that’s not unreasonable. Underpinned by the news on Microsoft, The Winklevoss twins, and several countries’ governments which adopted Bitcoin, by June, Bitcoin became worth over $3,000. By October, it hit the $6,000 mark. With no sign of stopping, Bitcoin finally reached the $20,000 mark, having marked a historic high for the cryptocurrency.

You remember us saying above that where’s big money to be made, there are many players to play illegally. But the chain doesn’t stop here: where are players to play illegally, there’s a big brother coming to regulate the mess. While 2017 was a year of desirable volatility, 2018 became a ‘Year of Pervasive Regulations’. A great variety of crypto bans, limits, enacted by China, South Korea and other financial superpowers contributed to the heavy drop in crypto prices. On June 24, 2018, Bitcoin hit its lowest point for the past year – $5800.

The crypto market entered 2019 with a not-so-bad note, having been traded at the $3000-$4000 level. Many experts believe that the Bitcoin’s history is cyclical, and the current drop and the following stagnation were witnessed before. Bitcoin significantly dropped in value in 2014 – from $985 to$ 755 (-23.5%); in 2015 – from $320 to $165 (-48.5%); in 2016 – from $465 to $355 (-23.5%); in 2017 – from $1,180 to $750 (-36.5%); and in 2018 – from $17,200 to $9,150 (-47%).

‘Calm before the storm’ – that’s how the year 2019 could be named. Maybe already this year, or in 2020, we’ll see how the crypto market will reach its full potential and will make all the skeptics and naysayers look at the thing from a different angle.

It’s high time to catch the bullish momentum with Chatex bot. Making your first crypto purchase via one-click exchange is a great way to get involved, isn’t it?