The idea of cryptocurrency was first floated by Satoshi Nakamoto, the original inventor of Bitcoin. He wrote a paper in October 2008 titled ‘Bitcoin: A Peer-to-Peer Electronic Cash System,’ spelling out his plans for a decentralized money system. About two months later the first block of Bitcoin was successfully mined by Nakamoto himself.
Originally many people had reservations about Bitcoin, unlike today when millions of people are now actively investing in it. In fact, Bitcoin was basically valueless when it was introduced and all it would cost you to own it was the electricity used in mining a block. The only use Bitcoin had then was sending it to another person.
The bitcoin network experienced slow growth at first, especially because while Bitcoin was introduced as an alternative form of money, it could not pay for goods or services. In fact, the first know commercial transaction involving Bitcoin was an exchange of 10,000 bitcoins for two large pizzas valued at $41 then. 5 years later that number of bitcoins could be worth as much as $2.4 million.
Early Bitcoin valuations
When many people started accepting bitcoin as a form of payment, it was labeled as the currency of the dark web. Bitcoin network is decentralized, so transactions are anonymous and no one needs to approve the transactions. Many dealers in black markets started accepting Bitcoin because of these reasons, marking the beginning of the rise in the worth of bitcoin.
By February 2011 one bitcoin was equal in value to the US dollar and a few months later, it had eclipsed that value. By the end of May 2011, one bitcoin was valued at $17. The rise was short-lived as the price again slumped to $0.01 in June 2011. However, Bitcoin would quickly go on to gain value again, reaching a high of $26.15 per bitcoin that year. You can visit Loop and learn how Bitcoin has risen in value over the years.
The 2012 Bitcoin halving
Every four years starting from 2012, the Bitcoin network has been conducting bitcoin halving which reduces the rewards issued to miners by half. Many experts argue that this contributes to an exponential rise in the worth of Bitcoin, citing how Bitcoin’s value has shot up after every halving event. Bitcoin halving reduces the number of bitcoins available causing a supply shock which consequently increases the value.
A year after the 2012 bitcoin halving, there was a time Bitcoin was valued at $770 a high at that time. Although Bitcoin experienced price fluctuations, many people who invested in Bitcoin still managed to make huge gains. Many of the price fluctuations were caused after incidents of suspected fraud hacking were reported. Over the next few years, Bitcoin’s price went up and down until the 2016 bitcoin halving event.
How much is Bitcoin worth now?
After the 2016 halving, the value of Bitcoin rose by a whopping 1300% to $19,783.06 per bitcoin. Over the following years, Bitcoin suffered some volatility with its value going up and down rapidly. By the beginning of 2020, Bitcoin was trading at $9388.66. The COVID-19 pandemic affected the price reducing the value of a bitcoin by around $5,000. In 2021 after the 2020 bitcoin halving, Bitcoin traded at an all-time high of $64,000 per bitcoin.
What does the future hold for bitcoin?
It is true that Bitcoin has experienced severe price fluctuations but overall, it has recorded a massive increase in value. Many investors still do not agree on the potential Bitcoin price trajectory with some believing it will go down. The data shows Bitcoin’s worth goes up and down but historically, the value has always been going up overall.