In the 15 years since its launch, Bitcoin has experienced various events, with its price fluctuating from zero to $72,000 per BTC. Since then, Bitcoin has gone through many forks and has gradually been accepted by everyone.
Join CoinMinutes as we revisit significant milestones in Bitcoin’s history.
Key Takeaways
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When Did Bitcoin Start?
Bitcoin, the pioneering cryptocurrency emerged as the inaugural and most recognized digital asset. Debuting in January 2009, it was introduced by an individual or group of programmers under the alias Satoshi Nakamoto, whose true identity remains elusive.
The 2008 financial crisis eroded public confidence in traditional banks, sparking interest in alternative assets independent of banking systems. This pivotal moment led to the birth of Bitcoin, enabling direct transactions between parties without intermediary financial institutions.
History of Bitcoin
In just 15 years, Bitcoin has transformed from a nearly anonymous cryptocurrency to a household name among investors worldwide.
2008: Bitcoin’s journey began on October 31, 2008, when a user named Satoshi Nakamoto shared the Bitcoin Whitepaper on a cryptography forum.
The Whitepaper, titled “Bitcoin: A Peer-to-Peer Electronic Cash System,” introduced a decentralized transaction network, bypassing the need for intermediaries like banks or payment apps.
Satoshi implemented Stuart Haber and W. Scott Stornetta’s Chain of Blocks technology, renaming it the Distributed Blockchain, to power the Bitcoin network. Additionally, Satoshi enhanced Bitcoin’s security and data storage capacity by modifying the Merkle Tree structure.
2009: While the Bitcoin Whitepaper emerged in October 2008, the official launch of the Bitcoin network occurred in early 2009.
On January 3, 2009, Satoshi Nakamoto “mined” the Genesis Block, marking the inception of the Bitcoin blockchain.
A mere three days later, Satoshi executed the first-ever Bitcoin transaction, transferring 10 BTC to Hal Finney, the inaugural Bitcoin user. This historic transaction was recorded in block number 170.
2010: On May 22, early Bitcoin miner Laszlo Hanyecz, known as “Laszlo” on the forum bitcointalk.org, made history by exchanging 10,000 Bitcoins (then valued at a mere $41, or 0.41 cents per Bitcoin) for two Papa John’s pizzas from Jeremy Sturdivant. This transaction is hailed as one of the earliest instances of Bitcoin being used as intended as a digital currency for purchasing goods or services.
Every year on May 22, Bitcoin Pizza Day commemorates one of the most iconic transactions in cryptocurrency history.
2011: In February, Bitcoin’s value soared to $1, marking a significant milestone in its ascent. By December of the same year, it surged to over $13, signifying its rapid growth.
During this period, blockchain.info was launched to facilitate easier tracking of BTC. Blockchain.info (now Blockchain.com) played a crucial role by developing a large cryptocurrency wallet, enabling users to store their digital assets securely.
At this time, there was an intriguing event involving a 12-year-old boy who invested $1,000 gifted by his grandmother in approximately 100 Bitcoins and each Bitcoin was valued at around $10. He quickly rose to fame as one of the first cryptocurrency millionaires.
2012: Bitcoin’s value began its ascent from $13, marking the start of a significant growth period.
November 28, 2012, witnessed the first Bitcoin halving event, a pivotal moment in the crypto world. While initially, the halving had little impact on Bitcoin’s price, the coin’s value began to steadily rise at the onset of 2013, a pattern consistently observed after subsequent halving events.
During the first halving event, the block reward was reduced from 50 bitcoins to 25 bitcoins, leading to the value of Bitcoin dropping to $12.50.
2013: Bitcoin reached $1,000 for the first time in November 2013, but did not hold its price for long. Bitcoin closed in 2013 at $700, according to data from CoinDesk.
In May, the U.S. Department of Justice shut down Liberty Reserve, a virtual currency site, for laundering approximately $6 billion from illicit activities, including credit card fraud. Founder Arthur Budovsky, 42, pleaded guilty to laundering $250 million in illegal proceeds.
July 1, 2013, marked the first attempt at a Bitcoin Exchange-Traded Fund (ETF) when the Winklevoss twins filed a proposal with securities regulators. Although considered a long shot at the time, the move aimed to bolster Bitcoin’s legitimacy as a legitimate currency.
December 5, 2013, saw China announcing a ban on third-party payment institutions from utilizing Bitcoin, mandating the cessation of all deposit-taking, trading, and other currency-related services.[1] This marked one of the earliest instances of a country speaking out against this cryptocurrency.
2014: The Internal Revenue Service (IRS) declared that gains or losses in cryptocurrency must be reported and treated as property. This ruling meant that income from cryptocurrency sales would be subject to taxation as capital gains, akin to profits from stock transactions.
MT. Gox, a major exchange handling most Bitcoin trades, went bankrupt because hackers stole a huge amount of Bitcoin.[2] This event worried many investors and showed that the Bitcoin industry lacked proper rules and oversight. After this, the price of Bitcoin stayed around $300 for three years.
2015: Bitcoin experienced a gradual upward trajectory, culminating in a year-end value of approximately $430.
2016: The second Bitcoin halving event has occurred. This halving has reduced mining rewards, causing the value of Bitcoin to drop sharply to $670.
On July 9, 2016, Bitcoin experienced its second halving event, reducing the reward per block from 25 BTC to 12.5 BTC. Although Bitcoin’s price initially dropped post-halving, it eventually rebounded, reaching an all-time high of $2,550 by July 2017.
In October 2016, certain community members suggested the Segregated Witness (SegWit) solution to enhance scalability by optimizing the block size of BTC.
2017: In July 2017, the upgrade was halted due to community discord. Advocates for a Bitcoin with block sizes exceeding 1 MB instigated a hard fork, resulting in the birth of Bitcoin Cash (BCH).
Read more: What is Bitcoin fork?
During this period, two US exchanges, CME and CBOE, started letting people trade contracts for the future price of Bitcoin. Bitcoin’s price shot up from $2,000 in July 2017 to nearly $20,000 by the end of the year.
2018: Following that, the fervor surrounding the world’s largest cryptocurrency dwindled in 2018, with Bitcoin plunging and breaking through the $4,000/BTC threshold.
2019: The IRS provided additional guidance on cryptocurrency transactions, including purchases, sales, and trades, using Form 8949 for reporting capital gains and losses, then the market capitalization of Bitcoin reached over $229 billion.
During the same year, Bitcoin reached a peak of $12,862.48/BTC on July 10, 2019, but swiftly declined to a low of $7,233.41/BTC on December 18, 2019.
2020: Bitcoin experienced a dramatic surge, leaping from $7,350 to $30,000.
On May 11, 2020, Bitcoin underwent its third halving event, resulting in miners receiving 6.25 BTC per block, down from the previous reward of 12.5 BTC per block. Similar to the pattern observed in 2016, Bitcoin’s price initially dropped after the halving.
However, it rebounded from its 2020 low of $3,858, reaching $12,100 in late July 2020. On December 16th, 2020, Bitcoin shattered the $23,000 barrier, surpassing the historic $20,000 mark.
On August 11, 2020, MicroStrategy announced the acquisition of 21,454 BTC, valued at over $250 million. This marked the first instance of a publicly traded company investing in BTC.
2021: In the early months of 2021, initiating the market’s bull run, Tesla made headlines by investing $1.5 billion in Bitcoin on February 8.
Expanding its involvement, Tesla started accepting BTC as a payment method in the United States.[3] This development sent shockwaves across the globe with “Tesla, Elon Musk, Bitcoin” dominating headlines. Elon Musk emerged as a prominent figure in the crypto market.
El Salvador made history by becoming the first nation to adopt Bitcoin as legal tender.[4] By March 2024, the country’s investment in Bitcoin had resulted in significant profits, marking a major milestone for the Central American nation.
2022: By December 23, Bitcoin is trading below $17,000, signaling a 60% loss in value for 2022. This year signifies the start of the digital currency winter cycle triggered by the collapse of several prominent companies.
2023: On January 10, the approval of Bitcoin ETFs by the SEC marked a pivotal moment, signaling Bitcoin’s enduring presence and its readiness for widespread accessibility.[5] Bitcoin ETFs offer a key advantage by enabling investors to purchase Bitcoin through traditional brokerage accounts, eliminating the need for direct cryptocurrency purchases, which often demand technical expertise and a crypto wallet.
2024: On March 14, Bitcoin hit a new high of $73,750.07 per BTC. Then the 4th halving event took place on April 19th, the Bitcoin reward decreased to 3.125 BTC.
The Bottom Line
Bitcoin has had a remarkable journey, experiencing significant changes, ups and downs. It started as a mystery and has evolved into a well-known investment option. Along the way, it has faced various challenges, including hacking and government regulations, but it has also seen substantial increases in its value. Nevertheless, Bitcoin continues to be an intriguing part of the future of currency.
Related: Bitcoin price history
