How much was Bitcoin worth in the beginning

Over the course of its existence, Bitcoin has evolved from a “financial bubble,” as it has been called, into the world’s most expensive and best-known currency. The value of the main cryptocurrency repeatedly fell and then rose, surpassing its previous records. Let’s remember the path of the first cryptocurrency, how much Bitcoin was worth in […]

How much was Bitcoin worth in the beginning

Over the course of its existence, Bitcoin has evolved from a “financial bubble,” as it has been called, into the world’s most expensive and best-known currency. The value of the main cryptocurrency repeatedly fell and then rose, surpassing its previous records.

Let’s remember the path of the first cryptocurrency, how much Bitcoin was worth in the beginning and what success it was able to achieve.

When Bitcoin appeared

The Bitcoin network was officially launched on January 3, 2009, when the first genesis block was generated by the creator of the cryptocurrency, unknown under the nickname Satoshi Nakamoto. But the concept of decentralized currencies functioning was described by Satoshi Nakamoto back in October 2008, becoming the basis for both Bitcoin network and many of its followers.

The day the Bitcoin network was launched changed the world forever, becoming a point of no return in the birth of a new layer of economy built on decentralized management. Except, at the time, it wasn’t obvious. Bitcoin mining was treated as if it were a computer game, and few enthusiasts believed in its great future.

The first Bitcoin transfer transaction took place nine days after the launch, when Satoshi sent one of the first crypto-enthusiasts, Hal Finney, 10 VTC. The first exchange transaction for fiat money also took place in 2009. In October this year, Marty Malmy sent a transfer of 5,050 VTS to a user with the nickname NewLibertyStandard and received $5.02 in his PayPal account in return. That amount wasn’t chosen for nothing. That’s how much, according to the calculations at the time, the cost of electricity for the extraction of 5050 VTs.

Later New Liberty Standard became one of the first analogues of crypto-exchanges, though it was rather a simple service offering pricing by the princes of electricity costs for mining. This was the method by which the initial price of bitcoin was determined for some time, until it was replaced by a price formed by the level of supply and demand.

Bitcoin did not begin its true ascent to the top until 2013, when for the first time the value of the coin began to rise so sharply that it caused a public outcry.

How much was Bitcoin worth in the beginning?

In its first four years, Bitcoin managed to appreciate 1,570,800 times. And for all the significance of the amount, this is just dust on the scale of its history. How much bitcoin was worth in 2009 is difficult to say definitively. After its launch, Bitcoin’s technical value was zero, since it wasn’t traded anywhere and couldn’t be bought for. Only the New Liberty Standard set the Bitcoin rate at $1 per $1,309 BTC, according to the cost of mining it, which was $0.000764 per coin.

For the whole 2010 Bitcoin never managed to rise in price at least up to $1, though it was already possible to see the tendency to increase in value. The bitcoin value in 2010 was equal to $0.0025. The most significant event for Bitcoin that year was the purchase of two pizzas by American Laszlo Hanech for 10,000 BTC. To think that by holding his BTCs for another 10 years, Laszlo could have gotten more than $450 million for them.

What bitcoin was worth in 2011 was one of the most significant values in its then history. It was the year when Bitcoin broke its first psychological barrier and exceeded $1 for the first time. This happened after several highly specialized publications, in particular Slashdot and Hacker News, wrote about Bitcoin, allowing the cryptocurrency to gain new followers from Twitter. In April 2021, TIME wrote an entire article about Bitcoin. The network’s hash rate, and consequently the number of bitcoin miners, began to gradually grow after the mention in the media.

In 2011, the value of VTC soared to $32 in just six days, but then fell to $10. Back then, Bitcoin was already trading on the first cryptocurrency exchange, Mt.Gox. And its hack, which took place in the same year, almost turned out to be a crash for VTC. Then, amid the hack, the value of the coin fell to $0.01, which was the largest drop in the history of Bitcoin.

In 2012, the value of the coin managed to rehabilitate to $13.44. And that same year saw the first ever Bitcoin halving – the halving of fees for miners.

Starting in 2013, Bitcoin’s turnover became much more serious. This year, the value of VTC exceeded the $1,000 mark for the first time and reached its new all-time high of $1153. Such a fabulous rise of the coin was repeated only 5 years later – in 2017.

The period from 2014 to 2016 was marked by almost nothing for Bitcoin. Its value was also stable and fluctuated around $1000 per coin, but 2017 was a turning point in the history of Bitcoin. The market capitalization in the coin reached $330 billion this year, and the value of the coin reached almost $20,000.

Why Bitcoin rose in price

Until January 2017, Bitcoin traded at $1150 per coin, rising and falling slightly in response to market sentiment, and then began to appreciate sharply. By mid-December 2017, the value of the coin had soared to a record $19,974. The bull market will last 28 months – from August 2015 to December 2017. During this time, the value of the coin managed to rise in price by 9884%.

Such a surge was caused by the emergence of ICOs – a new way to raise funding. Startups entering the ICO offered investors to buy tokens of their project at a minimum price, paying for the purchase with VTS and sometimes several other popular cryptocurrencies.

Projects that raised investment capital through initial coin offerings raised millions of dollars in capital, often without even a minimally workable product under their belt. Almost 70% of all ICO startups failed, but even despite the low chance of success, they excited the minds and wallets of the public with the opportunity to easily raise capital. After all, having invested only a small amount, it was possible to receive a solid capital if the project was successful.

Halvings were also a decisive factor in the growth of Bitcoin. In the history of Bitcoin there were four of them – in 2012, 2016 and 2020, and each time after some time after them, the value of the coin started to grow. Other reasons for Bitcoin’s rising value include:

  • Limited issuance. Only 21 million VTC will be issued in total, fueling public interest in the cryptocurrency as it approaches its maximum value.
  • Demand Growth. Every year Bitcoin has been used more and more by various financial services and organizations, becoming more common as a means of payment.
  • An alternative to governments and banks. There is little doubt that Bitcoin is a quality and secure alternative to banks. What used to be called a “bubble” has come to be seen as nothing less than a key element of the new decentralized economy.
  • After the rise of 2017, Bitcoin has fallen on hard times again. The period of 2018-19 can be called a period of relative crisis in the cryptocurrency market. Many investors who bought coins at the peak of their value in 2017 sold their assets with huge losses. Miners hastily sold their farms, so they brought only huge losses.

In December 2018, VTC set a low of $3200. In 12 months, the decline was 84%. And the bear market lasted until early 2020, when Bitcoin’s value started to go up again at a record pace.

Maximum BTC price

Bitcoin set its all-time high in April 2021, when the value of the coin reached a record $64,863. Many experts believe that the recent rise in the value of BTC is not only due to the halving that took place last year, but also to the pandemic.

Due to the spread of the coronavirus, the governments of many countries imposed significant restrictions, which led to a decrease in activity in the economic environment. And despite the fact that the U.S. and the EU are stimulating their economies through additional spending, many still believe that the value of the dollar and the euro will begin to decline sharply amid the pandemic.

Fears about fiat money led to an increase in investment in VC and cryptocurrencies in general. At the same time, as noted by experts, the growth of VTC 2021 is different from what it was in 2017. If in the previous time Bitcoin was invested mainly by private investors from Asia, now institutional investors and large companies participate in trading, and they come mainly from the U.S. and Europe.

Of course, a significant role in the rise in value was also played by the fact that, being quarantined at home, ordinary people began to take a more active interest in investments and noticed in Bitcoin an oppositional currency to national currencies.

As early as 2024, the next Bitcoin halffing will take place. It should not be forgotten that millions of coins, mostly owned by the first miners, are irrevocably lost, and the whales are actively increasing their investment mass in VTC. And as the number of VTC scenarios grows steadily and the market supply shrinks, the value of Bitcoin is expected to rise even more rapidly going forward.

Based on the historical data of Bitcoin’s value, many experts believe that the value of $60,000 for this cryptocurrency is not the limit. If the coin repeats its historical record of 2015-2017, its value could exceed $316,000. But there are those who still consider Bitcoin a “bubble” that will burst sooner or later, even despite its staggering growth and now huge public support.

What do you think about Bitcoin? Is its rise in value logical and justified? Share your opinion in the comments.

 

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