A Brief History of Bitcoin [Everything You Need to Know!]

As the world’s most well-known and most valuable cryptocurrency, Bitcoin has quite a reputation. Since 2009, when Bitcoin was first established, the world of cryptocurrency has steadily been expanding and gaining traction in mainstream media. Of course, both Bitcoin and altcoins have had their fair share of criticism, but nowadays, much of the public can recognise the overall benefits of cryptocurrency.

But how did the story of Bitcoin begin? And why was it even created in the first place? To many, this coin seemed to appear overnight and suddenly took the investment community by storm, but this is far from the truth. Since the official Bitcoin whitepaper was released in 2008, this crypto has experienced an abundance of highs and lows alongside years of stagnated value. 

If you want to learn more about the years since Bitcoin’s creation, join us as we follow the intriguing journey of the first-ever decentralised cryptocurrency. We’ll discuss why Bitcoin was launched, the crypto’s detailed price history, and what we know about its elusive creators! 

What Is Bitcoin?

Bitcoin (BTC) is a type of digital currency that acts as a form of payment that is not under the control of any single person or entity. Like other cryptocurrencies, users can buy Bitcoin and use it in financial transactions without needing a third party. Bitcoin has been deemed the world’s first-ever successful decentralised crypto and has built up an incredible reputation and support base since its creation. 

As a decentralised cryptocurrency, Bitcoin does not need to rely on centralised entities such as governments and banks to be distributed. Instead, Bitcoin can be exchanged by users through a peer-to-peer network that doesn’t have any intermediary. This allows for seamless transactions between users, with each party having equal power. Additionally, the Bitcoin network is public and open-source, meaning that absolutely anyone can connect to it ad even inspect its source code. 

Bitcoin vs Fiat Currency

Fiat currency is money, such as Dollars, Euros, and Pounds, that can be used for payments and is controlled by governments. Bitcoin differs from fiat currency in a range of ways, with the main one being that it is not issued or regulated by a bank and is instead distributed through a complex process called mining. Also, unlike fiat currency, Bitcoin has a fixed supply, and no more coins can be created. 

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Fiat currency is considered as far more stable than Bitcoin and other cryptocurrencies and is already widely used by society to purchase various services and goods. However, Bitcoin does have a range of advantages, with the main one being that it can potentially increase in value and make traders a significant profit. Bitcoin and other cryptocurrencies also have a much faster and cheaper transaction process compared to fiat currency, with many translations costing under €0.01 and taking less than a minute to complete. 

Additionally, users can send Bitcoin to other users from all across the world without any issue, which is a process that is much more complicated with fiat money. Users also don’t have to worry about chargebacks when using cryptocurrency, as all transitions are irreversible and recorded on the blockchain. 

How Did Bitcoin Begin? 

Bitcoin was launched alongside the first Bitcoin block, the genesis block, on January 3rd 2009. Just a few months before this, in October 2008, the creator of Bitcoin, who uses the pseudonym Satoshi Nakamoto, published the whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System and introduced the world to Bitcoin for the first time. 

This paper outlined that the purpose of Bitcoin is to allow various parties to directly send online payments to each other with a peer-to-peer system without the need for an intermediary such as a finical institution. Further along in the whitepaper, the creator describes the translation process of Bitcoin and explains which problems this cryptocurrency can solve. 

Despite much speculation, the true identity of Satoshi Nakamoto is still unknown. Over the years, various individuals have surfaced and claimed to be the creator but have been met with scepticism. 

A Brief Timeline of Bitcoin 

So, what exactly has happened since the cryptocurrency’s whitepaper was published? Here is a brief year-by-year history of Bitcoin from 2008 up to 2021:  

2008 – The Year It All Began 

On August 18th 2008, the domain name bitcoin.org was registered, beginning the journey of the world’s most popular cryptocurrency. Two months later, on October 31st, Bitcoin’s whitepaper was published to explain exactly how the crypto and blockchain work. 

2009 – The First Mined Block

On January 3rd 2009, the first block (known as the genesis block) on the Bitcoin network was mined by creator Satoshi Nakamoto. This block contained a text note that read: “Chancellor on Brink of Second Bailout for Banks”, referencing an article from THe London Tikesm regarding the 2008 – 2009 financial crisis where banks received trillions of bailout money from governments. At this point, Bitcoin had a value of € 0 and wouldn’t see any rise in popularity until the following year. 

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2010 – The Turning Point

Satoshi Nakamoto withdrew from the Bitcoin project in 2010 just as the cryptocurrency was gaining traction for the first time. Traders could begin buying and selling Bitcoin on various platforms but it was still only known about by a niche group of technical experts and finance enthusiasts. In July 2010, the month that Bitcoin had its debut, the price rose to eight-hundredths of a penny (€ 0.0008). 

2011 – The First Price Surge 

In 2011, Bitcoin broke $ 1 and continued to rise in value at a rapid pace. During this year, other cryptocurrencies began to emerge, and some organisations, such as The Electronic Frontier Foundation and WikiLeaks, started accepting Bitcoin as a form of donation. 

2013 – The All-time Low

Although 2012 was a generally uneventful year for Bitcoin, in 2013, the coin experienced extreme volatility. This was the year that the cryptocurrency plummeted to an all-time low of € 51.30 on July 5th. The coin was also starting to be mentioned in mainstream media and received a fair share of criticism from sceptics. 

However, it wasn’t all bad news for Bitcoin, as one of the coin’s payment processing services, BitPay, claimed to have over 1,000 merchants who were now accepting the coin as a form of payment. At this time, there were only 14 other cryptocurrencies listed on CoinMarketCap, including Litecoin and XRP.  

2017 – The Second Price Surge 

Between 2014 and 2016, Bitcoin’s price gradually rose. More and more cryptocurrencies were being introduced, including Bitcoin’s main rival, Ethereum (ETH). In early 2017, Bitcoin reached a new milestone as its price soared to over € 1000. The coin continued to surge through the year and reached a whooping € 17,094.11 by December.

2021 – The All-time High

After the impressive surge in late 2017, the price of Bitcoin moved sideways for a few years. Throughout this time, cryptocurrency gained more media coverage and became a mainstream topic, with more altcoins popping up in the market. During these years, the general public was becoming more aware of the benefits of cryptocurrency, and new traders were regularly emerging with the goal of making huge gains. 

It wasn’t until early 2021 that Bitcoin began to skyrocket once again, reaching its all-time high of € 59,630,00 in November. Just a few months later, the price of Bitcoin dropped once again and has since hovered around € 20,000. However, cryptocurrency experts are still confident that Bitcoin will rise once again, and some have even predicted that it will one day surpass € 100,000. 

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Bitcoin Price History 

So, how has Bitcoin fluctuated throughout its lifespan? Below you can find the price history of Bitcoin (in Euro) between 2014 and 2021! 

YearHighest PriceLowest Price
2021€ 59,630,00€ 23,647,20
2020€ 22.383,99€ 5.409,86
2019€ 12.223,31€ 2.928,67
2018€ 15.249,53€ 2.775,40
2017€ 17,094.11€ 707,06
2016€ 937,90€ 314,69
2015€ 426,79€ 135,85
2014€ 734,90€ 226,00

FAQS

Want to find out more about Bitcoin? Take a look at our answers to frequently asked Bitcoin questions! 

How Can I Invest in Bitcoin? 

If you’re new to trading and are interested in buying Bitcoin, we highly recommend using a crypto platform to help you get started on your journey. A crypto platform will connect you with a licensed broker who can guide you as you invest and support you with an array of resources, tools, and general knowledge. 

There are many crypto platforms around, making it tricky to decide on one to use. When choosing a crypto platform, you should consider factors such as security, fees, and ease of use. Of course, you also want to ensure that your chosen platform supports Bitcoin trading! Some versatile and beginner-friendly crypto platforms that we recommend include Gemini , Bitcoin Profit, and Kraken. 

These platforms are best suited for beginners but can be beneficial for traders of all experience levels. Whether you’re a first-timer who wants to start your Bitcoin trading adventure with a bang or you’re already an experienced trader who is just looking to step up your investment game and try out a new strategy, a crypto platform can undoubtedly help you out!

Is It Worth Investing in Bitcoin? 

As with all cryptocurrencies, Bitcoin is a volatile investment that has the chance to skyrocket to a new all-time high or even plummet to a value of zero. However, as the most popular crypto coin in the market, Bitcoin has an abundance of uses that can make it a worthwhile investment. If you’ve never traded any cryptocurrency before, then Bitcoin can be a great coin to start with, as it already has an extremely active and dedicated community. 

Please note that trading cryptocurrency is a high-risk process and is not suitable for everyone. Both new and experience traders can expect losses, so you should never invest more than what you’re willing to lose. We also recommend speaking to a licensed professional before you start trading real funds. 

How Long Does It Take to Mine a Single Bitcoin?

The time it takes to mine Bitcoin depends on several factors, including the miner’s hardware, how many miners are participating, and the mining difficulty rate. With optimal hardware and conditions, it can take around 10 minutes for a single Bitcoin to be minded. With most miners, however, it can take around 30 days! 

What Was Bitcoin’s Lowest Price?

Bitcoin’s lowest price was € 51.30 ($65.53) on July 5th 2013

What Was Bitcoin’s Highest Price?

Bitcoin’s all-time high was € 59,630.00 ($68,789.63) on November 10th 2021

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