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Without a doubt, Bitcoin is the leader among all the sensational things that humanity created. In other words, the development of the first-ever cryptocurrency flipped the whole view on the concept of money and the economy in general. Just a couple of decades ago, people could barely imagine something so different from familiar currencies.
Yet, Bitcoin managed to impress the entire world with its unusual nature and astronomical pace of growth. This currency’s name is so loud that probably everyone has heard about it nowadays. Nonetheless, few people actually know the entire chronicle of events that led to the current situation in the global crypto market.
Why is it beneficial to learn the prehistory of Bitcoin? Here are several arguments for studying the matter:
- You understand the situation at the financial markets better. Indeed, Bitcoin has a severe impact on other fields of the economy since different spheres are interconnected;
- You might consider purchasing or selling a token or two in the future, regardless of your home country. For instance, you could think of buying BTC in Canada or elsewhere. Knowledge about previous trends is crucial for successful investing because it becomes easier to predict the subsequent changes.
The origin of Bitcoin
How come someone invents such a groundbreaking technology as Bitcoin? The power of human intelligence let one genius or a group of them come up with the first independent digital currency. Due to this invention, users all over the world are able to gain profit just by investing at the right moment.
In fact, the story of Bitcoin started right after the worldwide crisis that took place in 2008, which is hardly a coincidence. When the global economy collapsed, everybody suddenly realized how fragile the banking system really is. This was a wake-up call that resulted in the emergence of Bitcoin.
To this day, many speculate about the actual name of the founder of this cryptocurrency. Some assume that only one person works under the alias of Satoshi Nakamoto. Meanwhile, others believe that the system is too complex for one individual to invent. Markedly, several people claimed to be Satoshi which turned out to be a lie.
In either case, Bitcoin continues to take over the world and people’s minds since 2009. For the first time in history, humanity got something that has all the functions of money but depends on entirely different factors. The cryptocurrency stores value and assists in exchange while being independent of any government.
The events prior to 2017
As mentioned before, the official start of the initial cryptocurrency was in 2009, when only a couple of initiated people knew about it. More than a decade later, Bitcoin allows its investors to build a fortune. However, in the first couple of years, one token was only worth several thousand dollars. In other words, the price rise was enormous in a span of a decade.
There was a curious case in regards to the initially low cost of Bitcoin. The first historically documented purchase using this cryptocurrency happened a year later, in 2010. In short, a man paid ten thousand BTC for pizza delivery, which is a tremendous sum now.
In general, the period from 2009 to 2016 was hardly successful for Bitcoin. Its price remained relatively low and even, with few drastic surges or slumps. Overall, the Bitcoin price only managed to overcome the $1200 milestone. Still, the cost mostly fluctuated between a couple of dollars and several hundreds of USD.
At that time, the world was only getting acquainted with such a notion as cryptocurrency. Mainly, Bitcoin was involved in the sphere of the shadow economy. Few businesses accepted and used BTC and almost zero places where you could exchange tokens for fiat money or vice versa.
The period after 2017
2017 became a genuinely triumphant year for Bitcoin. The history of the most popular cryptocurrency divided into before and after. Why was it that year specifically? Briefly speaking, all the factors lined up. Firstly, governments began accepting BTC as a form of payment, which Japan did first. This event, in turn, heated the interest of society, and the price went up naturally. Finally, the cost of one token beat the mark of several thousand US dollars.
At this point, the spiral began building up. Another key characteristic of that period was the fame of Bitcoin in social media. Multiple influencers and celebrities openly discussed cryptocurrencies and attracted the attention of the general public to this topic. If someone wanted to be trendy, they had to immerse themselves in the world of digital money and get acquainted with Bitcoin.
Furthermore, the technologies and infrastructure finally met the requirements of the crypto market. It became easier to find an ATM for token exchange or a shop where you could spend your Bitcoins. Generally, cryptocurrency started to associate with legal activity more than previously.
Owing to such positive transitions, Bitcoin experienced a few extreme boosts since 2017. The token, which cost almost nothing back in 2009, reached ten thousand dollars and proceeded to hit record by record. One of the most impressive rises happened in March 2021, when Bitcoin was worth over 58 thousand USD!
A harsh cutback happened shortly after this event, but everyone understood which heights were possible for this currency. Indeed, some financial experts suggest that the global economic downturn in 2020 heavily influenced the rising attraction to Bitcoin. The potential investors spend their costs in attempts to win more in a crypto market. Remember that both ups and downs are unavoidable in this case.
On the whole, the history of Bitcoin is full of drastic fluctuations and unexpected turns. Economic, political and cultural factors formed the current situation in the crypto market. Because this type of currency was the first of its kind, society failed to predict the possible events regarding Bitcoin. Nowadays, even the most competent experts barely know what the future holds for cryptocurrency. The perspectives are foggy, so the only available option is to wait and see what happens to Bitcoin next.
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