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A Brief History of Bitcoin

4 min read

In the last few years, cryptocurrencies have been all the rage as we witnessed their historical rise and, in a shocking twist of events, a fall back to grace. Unfortunately, Bitcoin, the mother of all cryptocurrencies, took the worst hit and is still struggling to recover. But before we even get there, let’s look at how Bitcoin got here in the first place.  

The history of Bitcoin is both mysterious and intriguing. At first, people didn’t trust it or even know where it came from, but gradually, they came to accept its unique benefits. Then it took off, and now we’re not so sure, as we shall see in this piece. 

When Was Bitcoin Created?

In 2007/2008 when the market crash happened because greedy bankers were practising bad financial management, and mistrust in the government was at an all-time high. A brilliant Japanese coder by the name of Satoshi Nakamoto sort to offer a solution that would solve some of the problems that reared their nasty head by creating Bitcoin. Some of which were the centralised financial system and how it was run and owned. 

The issue he saw was that in centralised financial systems, the concentration of power is at the top and held only by a few people. And when they are left unchecked, market crashes like the one experienced in 2008 happen. 

So he set off to create an unhackable decentralised system, though today, we wouldn’t go as far as to say that. And a peer-to-peer decentralised online cash system that gave its users anatomy and launched it in 2009 (more details). Furthermore, he also kind of pioneered the revolutionary blockchain technology that’s the foundation of all cryptocurrencies today. 

That same year, the first-ever Bitcoin transaction occurred when a Bitcoin holder bought two pizzas at 10,000 Bitcoins. The price of the pizzas was $25, which valued a single Bitcoin at around a fourth of a cent. Fun fact, if we were to adjust for inflation, that purchase would make those two pizzas the most expensive pizzas ever bought.

Josh Peck, the founder of TrueCode, a crypto hedge fund, reminisces that most of the early guys to Bitcoin didn’t understand what it was, but they were fascinated by its design. 

The History of Bitcoin’s price

Today Bitcoin is widely known, and even though it’s not as valuable as it was a few months back, many still trade and invest in it. Follow this link https://tradingguide.co.uk/awards/cryptocurrency-brokers/ if you’d like to learn more about crypto brokers in the UK. Furthermore, for some time, Bitcoin was starting to seem like a good store of value, but we know what happened with that. 

But before the price went over the roof and then back down, Bitcoin had to undergo some very critical evolutions. The first, and some would say most crucial, was, and pardon the repetition, the first. There needed to be a credible entity with good business acumen to accept the mode of payment to legitimise it, and that entity came in the form of Papa John’s Pizza. A fact that Bitcoin enthusiasts still celebrate on May 22nd or Pizza day. 

Bitcoin’s other important milestone was crossing the $1 price mark, which, to many, made it a viable currency, which happened in 2011. That same year, Bitcoin saw its first competitor, Litecoin, launch, followed by others like Ethereum. From then on, there was no stopping Bitcoin, and prices started to snowball and reached new heights every so often. 

By 2017 the cryptocurrency market was so flooded with new coins that the bubble burst, and the price of Bitcoin fell from the tens of thousands to $2,000. This would not be the last time Bitcoin’s price would skyrocket and drop again, as it did in 2021 when it reached over $63,000, and now it’s worth almost $20,000. 

Final Thoughts

Bitcoin’s story has every ingredient a good blockbuster needs. It started as a mystery drama with a touch of David and Goliath’s story that stood up against the establishment to fight for the people. The underdog endured trials and tribulations and almost slayed the dragon’s head, but it was not to be. However, people took to its charm, and the love story quickly turned into a golden fleece and rugs-to-riches one for many. Now Bitcoin is the suffering hero fighting for survival; for one, we cannot wait to see how this next chapter unvails. 

Last Updated: September 14, 2022

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