Bitcoin Has Completely Revolutionized the World of Money. But Really, How Did it All Begin?

Learn more about Bitcoin and its history.
By Savannah Moss
Image: André François McKenzie | Unsplash

Bitcoin has captured investors and the rest of the world. On the wild ride out of its small start in 2008 towards its price peak in 2021. The first virtual currency has gone up and down for almost one decade. Tried to rally and fall, risen and failed again and on its way to tens of thousands of dollars. Bitcoin is a peer-to-peer electronic exchange that is decentralized. Put another way; people can transfer funds directly to others without needing a bank or related parties to act as a middleman. Bitcoin was invented so that people could conduct financial transactions at bitcoin system trading without relying on the govt or banking industry. The Blockchain network, which uses a proof-of-work technique for monitoring and verifying transactions, allows users to conduct business amongst themselves.

Image: David Shares | Unsplash

Bitcoin is the most popular virtual currency today, and some proponents believe it will eventually replace cash. Whereas Bitcoin isn’t perfect, investors are encouraged by the progress made ever since cryptocurrency’s inception. Bitcoin’s rise has sparked a genuine community of ecstatic supporters about cryptocurrency’s potential for firms and investors. In addition, large numbers of other cryptocurrencies have sprung up due to Bitcoin’s success.

What Year Did Bitcoin Begin?

Bitcoin was born as deep mistrust of financial institutions and their involvement in the financial sector grew during the 2008 Great Recession. Satoshi Nakamoto, an individual or a group of individuals, published a white paper responding to the centralized control of capital and the belief is necessary to manage citizens’ cash.

Transactions in the context of banking can be overturned or tampered with by 3rd parties, resulting in high transaction costs. Bitcoin was pitched as a way of conducting business without a mediator. Rather than belonging to third banking institutions, the BTC system uses data encryption proof to ensure the network’s integrity.

The first block, known as the genesis block, was extracted on Jan. 3, 2009, and the blockchain technology was officially launched. A week later, the very first test transaction occurs.

Image: Kanchanara | Unsplash

The Price History of Bitcoin

Bitcoin’s volatility is one of its most well-known characteristics. Bitcoin, starting to emerge as an asset class, is fraught with pure conjecture, with the grounds for its value being hotly debated. Despite price volatility, Bitcoin’s value has skyrocketed since its launch in 2009. The price of Bitcoin surpassed $1 in February 2011. “Its cost was under $2 for the first few decades as it grew,” “In June 2011, it experienced a first-ever bubble, skyrocketing with about $31 before plummeting to single digits.”

Bitcoin managed to reach $200 almost two years, in April 2013. It must have been valued at more than $1,000 by November of that year. It then rose to $10,000 by November 2017 before peaking at around $68,990 by November 2021. That isn’t to say the journey was without bumps.

Bitcoin was assumed to be in a burst in 2017, with venture capitalists paying extra to own the cryptocurrency. However, the 2017-2018 bubble has been primarily driven by a surge in digital currencies or ICOs. Some industry analysts compare the BTC bubble to the late-twentieth-century internet boom.

 “The Digital asset craze flooded the crypto market with billions of dollars. Unfortunately, venture capitalists saw the worth of coins plummet in the first quarters of 2018, as prices plummeted due to a combination of psychical and technological aspects, including unpredictability, fraud, and a loss of faith.”

Following the depreciation of Bitcoin’s value, a “mature industry” arose all-around virtual currency. “National financial institutions were granted approval to custody crypto assets, and Fidelity decided to enter the custody space,” says the report.

Image: Aleksi Raisa | Unsplash

The Future of Bitcoin

Creative, cost-effective, and transparent investment vehicles are on their way to becoming a reality, making virtual currency even more approachable. This level of access would be comparable to that of established markets.

Remember that no asset, especially one in the frontier, was without risk. So, whether there’s one thing we can learn from currency’s history, it’s because what goes up might want to go back, and it can finally come down quickly.