Bitcoin History: key moments of the blockchain industry
It is said that history is a teacher of life. What can bitcoin price history teach us?
We spend a lot of time on BuyCoinNow analyzing the recent bitcoin price history and wondering in what way this knowledge might be useful for further investments. Sometimes, however, it is good to take a step back and look not only at current market trends but also at the process of development of the cryptocurrency world. How did it all begin, and why did people start to invest in bitcoin?
The past of the Bitcoin cryptocurrency industry is undoubtedly a fascinating story, the exploration of which can be an exciting journey. Let's see how the history of Bitcoin began, and how it eventually took us to the place where we are right now.
The very beginning of a bitcoin price history
Everything began with a mysterious figure named Satoshi Nakamoto (whose identity is still unknown) and the project of decentralized money named Bitcoin. He (or she) registered the domain "bitcoin.com" on August 18, 2008, and a few months later, on Halloween, he published the white paper on this website. The software itself was officially launched at the beginning of 2009, as an open-source code, allowing all interested in participating in the project.
At this point in development, it was hard to talk about bitcoin price history. Back then, bitcoin cryptocurrency was nothing more than a free-time project, gathering only enthusiasts of the idea of a monetary system, alternative to traditional banking and state-issued fiat currencies. Such people were called cypherpunks, and they vote for the use of cryptography to protect privacy and security of citizens. For those people it was sure that Bitcoin soon will be equally important as gold.
The first transaction on the newly founded blockchain was made between Satoshi Nakamoto and cypherpunk Hal Finney, who received 10 BTC from bitcoin cryptocurrency creator. However, the real breakthrough happened in 2010, when programmer Laszlo Hanyecz bought 2 pizzas for 10,000 BTC, which at that time was about $30. This moment is considered the beginning of bitcoin's price history.
The five-year bull market
From that moment, the first cryptocurrency was slowly gathering more people willing to invest in bitcoin. It wasn't the brightest period in the bitcoin price history because thanks to its high anonymity it was then a popular currency in illegal transactions. But illicit activities weren't the only ones related to bitcoin cryptocurrency - first exchanges were established, and some developers began to work on various altcoins.
Until 2013, the price persisted below $30 for one bitcoin. But the situation on the cryptocurrency market changed drastically that year, setting the growing trend which lasted for the next five years. It is difficult to identify the exact causes of this situation. On the one hand, it was a time of intense development of the blockchain industry, with many new projects emerging. On the other hand, some unpleasant events also occurred, for example, the fall of the major cryptocurrency exchange Mt. Gox.
But one thing is for sure: both positive and negative moments in Bitcoin's history have increased its popularity. The cryptocurrency stopped being just a technological curiosity, gradually becoming a worldwide trend. As a result, more people decided to invest in bitcoin in that period, sparking the snowball effect that led to a price of $19,783 for one coin in December 2017 - an all-time high in the bitcoin price history.
New hope for bitcoin price history
Such a rapid price growth couldn't last for forever and it eventually led the industry to the biggest crisis in the bitcoin price history. The year 2018 was the period of the most significant losses for the blockchain world. After almost reaching the price of $20,000, the leading cryptocurrency began to fall down quickly, when many people who had invested in bitcoin started to sell their assets.
At the beginning of 2019, Bitcoin came to a halt around the cap of $4,000. For many people this situation was a tragedy. Some even believed in the imminent collapse of the whole blockchain. But more experienced traders and crypto enthusiasts saw this as an opportunity, according to the rule “buy Bitcoin when the price is low”. The bear market started, and the price once again began to grow.
Since that time, we already faced two different bull runs. First was caused by the announcement of Facebook's cryptocurrency, the second by the tense political situation in Iran, and the coronavirus outbreak at the beginning of 2020. Both show that the cryptocurrency market becomes very sensitive to the worldwide situation, and people become more eager to invest in bitcoin as a form of financial security.
But how can we relate those events to the overall bitcoin price history? The lesson from past events of the cryptocurrency industry is pretty simple. After all these years, Bitcoin has built a stable position in the worldwide market, and it became an integral part element of the modern economy. Thus, it is very unlikely that this well-established system will ever collapse. However, its price will always be unpredictable. Only by understanding previous trends and comparing them to the current situation we may get the upper hand on the market. And as the bitcoin price history proves, it's worth the risk.