Rags to Richest: The Spectacular History of Bitcoin

In just over a decade, bitcoin has proved itself time and time again to be an enduring force in investment opportunities. What started out as a little-known paper, subtly suggesting that there was a better way to view finances and cash-based assets, became a global sensation. One that continues to grow in adoption and hold fast to fairly impressive values.

The dynamic nature of has allowed something that few other assets can, a chance for newcomers and novice investors to get in on the market without losing their shirts, or needing to invest mass amounts of capital to see tangible gains. Because of this, a number of exchange platforms cater to exactly this type of investor. Platforms like Bitvavo , that help new users navigate the fascinating and dynamic marketplace, further engendering adoption and trust. Which is good for more than just investors, it continues to propel the market forward.

Where It All Began: Bitcoin ’08 – ‘09

In October of 2008, a mysterious and unknown person (or persons) released a white paper called Bitcoin: A Peer-to-Peer Electronic Cash System. The paper, written by Satoshi Nakamoto, described bitcoin in super fine detail, catching quite a bit of interest in the tech world- although it went largely unnoticed by other industries. By January 2009, the coin was fully operational and the first block had been mined.

Stuck in a Rut: Bitcoin ’10 – ‘15

While great things were happening during this time, bitcoin’s mainstream adoption was a slow grind towards what the coin is today. In 2010, the first bitcoin purchase was made, when Laszlo Hanyecz bought two large pizzas- transacting 10,000 BTC to an English man to get them delivered to his home. Which, despite the massive receipt that would generate today, it only cost about $40 in 2010. What is did create was Bitcoin Pizza Day, a historic moment in the coin’s trajectory towards adoption.

In 2001, the coin reached parity with the US dollar, and more cryptocurrencies began to emerge alongside many early exchanges. However, later that year, MT. Gox, one of the earliest crypto exchanges, was hacked and near $30,000 worth of bitcoin was stolen. Only to become party to a massive hack in 2014, where 850,000 BTC was stolen, resulting in the greatest hack of bitcoin history and effectively destroying the exchange.

Shortly after, many bitcoin investors lost faith in the security of the coin, and the slowly ascending price was slashed by over 50% by 2015. During this year, the ever popular Ethereum also made its debut.

Mass Adoption: Bitcoin ‘16 & ‘17

However, bitcoin recovered in late 2016, and exchanges began seeing more clientele. Hacks were still present, but never again on the scale of the final MT. Gox heist. By 2016, cryptocurrencies were really beginning to gain traction, particularly with the advent of Ethereum, which nearly went neck and neck for the top spot with bitcoin.

In 2017 though, bitcoin exploded. Reaching an unprecedented $10,000 per coin and continuing to shoot up. The coin hit over $20,000 in the fourth quarter, creating a massive buzz. However, once the price plummeted, many stopped following as they had thought the gold rush had reached its peak. While the coin was still a popular topic of conversation, bitcoin has yet to get near 20k since.

Bitcoin Goes Bear: ‘18 – early ‘20

Even following the plummet from such great heights, the coin regained a toe hold in value, never dropping below $1,000 per coin. However, the market remained a slumbering bear well into 2019. Despite its climb back towards the $10k mark, the massive market shakeout following the novel coronavirus once again dropped the coins value to uncomfortable lows. However, this time bitcoin was able to right itself quickly, returning to $9k in just a matter of weeks.

Until this summer, the coins value fluctuated very little, which had many investors believing it to be the next safe haven asset in the investment world. As of July, this has proven true as the coin tinges to gain value, resting around $11k and gaining momentum every day.

Where We Stand Now

Over the past decade, Bitcoin has proved itself to be a dynamic investment, but also a stable choice when it comes to having a diversified portfolio. Offering enough volatility to hold the attentions of all different types of investors, as well as recovering swiftly and holding strong following bear markets. The technology behind the coin is also something that holds great promise, both to investors and society at large.

Meaning that it’s an industry that is capable of growing alongside the world at large. A scalable asset in which use case and adoption have room for growth and a place in our future. If the history of this humble crypto is any indication, we can continue to expect great things as the industry adapts.

In this article