Bitcoin Price History
Bitcoin is a rather old project now, with 11 years worth of history now. Back in 2009, it was worth almost nothing, and the very first BTC transfer was from S. Nakamoto to H. Finney as a means of compensating them for their work. Right now, BTC costs more than 6,000 USD.
Bitcoin’s current value is not its highest recorded worth, as it peaked at $19,783 on December 17, 2017, before eventually losing a third of the value in only 24 hours. By December 22, it was worth $13,800. Bitcoin experienced high volatility in the market throughout the years until bitcoin eventually held a steady price of more or less $6,000 on its tenth anniversary.
Below is a detailed timeline of the value of bitcoin throughout the years, as well as its history.
Bitcoin’s value upon launch in 2009
When founder Satoshi Nakamoto launched Bitcoin in January 2009, it was worth almost nothing. Bitcoin began as a token of reward for mining blocks, and cryptography fans sent bitcoins to each other as a form of hobby. Programmer H. Finney was the first to receive BTC, 10 of them, as a reward from Nakamoto.
The cryptocurrency held almost no value until, in October 2009, Finnish software engineer Martti Malmi sold 5,050 bitcoins for the collective price of $5.02. Back then, one bitcoin’s worth was $0.00099. This was considered the most significant bitcoin transaction in its history, as it led to the beginning of its price growth, which continued until ten years later. This also opened doors for other cryptocurrencies to be introduced in the market.
In March 2010, BitcoinMarket.com was launched as the first platform for bitcoin exchange. In May, its value rose to a little less than $0.01. The first recorded purchase with bitcoin was through a man named Laszlo Hanyecz, who traded 10,000 bitcoins for 2 Papa John’s pizzas. It was equivalent to $41.
In February 2011, bitcoin traded at the value of the US dollar. Through 2011 and 2012, the cryptocurrency’s price went through the rise and falls, until, in November 2013, Bitcoin hit the $1,000 mark. It was traded at $1,242.
In February 2014, the price fell at the range of $550-$750 after Mt. Gox collapsed. Mt. Gox, in its operation, held 70% of all bitcoin transactions until it sustained a hacker attack and lost over 700,000 BTC it held (about 6% of the total number then). Two hundred thousand bitcoins were recovered; however, the rest have never been. Soon afterward, Mt. Gox declared bankruptcy.
For three years, the price fluctuated significantly, but Bitcoin also hit new highs. On September 1, 2017, Bitcoin reached the $5,000 price.
Bitcoin at its peak
In recent years, users have become increasing more aware of the growing value of crypto. Many traders were willing to purchase Bitcoin. On December 15, 2017, Bitcoin reached another all-time high, trading at $17,900 before its subsequent peak.
On December 17, Bitcoin peaked at $19, 783. This remains to be the highest recorded value of Bitcoin. However, four days later, on December 22, 2017, Bitcoin traded at $13,800, losing a third of the value in 24 hours.
Bitcoin celebrated its 10th anniversary with a constant value. On October 31, 2018, it was traded around $6,300. By November 25 of 2019, Bitcoin’s current value is $6,653 against the dollar.
What Determines Bitcoin Value
Bitcoin has value because many people are willing to buy or trade for it. There are different exchanges where one can purchase a bitcoin, such as Coinbase or Binance. Since people are willing to pay money for a bitcoin, which is limited in number, its value increases.
Another reason traders view it as a secure investment is that digital currencies use cryptography to limit its production and to maintain its inimitability. It is also a decentralized currency, which means it has no central government, only a distributed public ledger called blockchain.
Having a cryptocurrency is also an advantage, especially that it is a growing industry. You can purchase one bitcoin today at its current price, with the expectation that its value will grow in the future. Bitcoin is a form of investment.
Bitcoin Price Changes
The current Bitcoin price reflects the previous successful BTC trade on a particular exchange. This is the reason why different exchanges post different prices.
The value of BTC is regulated by the free market, demand and supply. When more people are willing to buy bitcoin, i.e., higher demand than supply, its price rises. When fewer people are reliable, i.e., higher supply than demand, its price falls.
Bitcoin’s value fluctuates from time to time. The way value is changing depends on supply, demand, competition, other cryptocoins and also the platforms where Bitcoin is traded.
The popularity of crypto is getting bigger and bigger all the time. Even though the market itself is pretty unpredictable, the value trend of BTC is climbing. In general, investing into Bitcoin is still very reasonable.