Bitcoin officially passed the $10,00 mark. According to Bitfinex, the King of cryptocurrencies finally reached the $10,000 mark at 29th November 2017 – 1:00 UTC. According to CoinCodex, Bitcoin is being traded for over $10,000 on almost all the Bitcoin exchanges. While the price on Bitfinex it’s only $10,439 – on Bithumb the Bitcoin crossed the $12,000 value.
A Short Bitcoin History
Bitcoin was introduced to a short cryptography mailing list by Satoshi Nakamoto. The true identity of the Bitcoin creator – Satoshi Nakamoto – is unknown. Satoshi described Bitcoin as ‘A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution‘.
The Bitcoin price was established on October 5, 2009 based on the cost of the electricity to run a computer that generates Bitcoin. At that moment, 1,309.03 BTC was equal to $1. The first transaction that ever took place using Bitcoin was the famous 10,000 BTC for 2 Pizzas.
The price kept rising more and more and soon Bitcoin hit the $100 mark. But this was only the beginning of the Bitcoin growth. After Dread Pirate Roberts was arrested in October 2013 – The price reached a $600+ value by November 2013. On 20 November 2013, The governor of the People’s Bank of China – Mr Yi – declared that “people are free to participate in the Bitcoin market,”. A new wave of users have been brought by these declarations which brought the exchange rate to a maximum of $1,242 on November 29th 2013.
But afterwards, Bitcoin suffered a huge loss in value due to multiple factors influencing the market. One of the most important ones were China’s financial institutions ban on Bitcoin and the hack of Mt.Gox. These two combined made the price drop to $408 by April 2014. The bad news were – a lot of people lost a life-changing amount of money and the Bitcoin credibility suffered from this.
The price recovered and passed the $1000 value again only on January 3, 2017. On April 1st, 2017 – Japan officially recognized Bitcoin as a legal method of payment. The price ascended in value over the year as more countries and institutions were supporting Bitcoin as a currency – while others were depending on it due to the high inflation.
The Year of Bitcoin
2017 was an amazing year for Bitcoin and it’s not even over yet. People turned to Bitcoin as a way to keep the funds safe and as an long term investment. After Japan, Australia, Mexico,Israel and many other countries accepted Bitcoin as a way of payment, the media started talking about it and considered it better than gold. This lead multiple financial institutions such as CME and Cboe to join the cryptocurrency market and offer futures contracts for their clients.
Not even the worst news couldn’t stop Bitcoin from passing the $10,000 mark. China’s ban on ICOs and the closure of Chinese exchanges affected the price on short term. The community already witnessed something similar in 2013, so people understood that it was a matter of time until the price will go up again. Jamie Dimon’s declarations about Bitcoin probably influenced some people to stay our of it. And convinced others to buy more at a lower price. The media attacked Jamie Dimon’s views on Bitcoin.
Not even the latest attack on the Bitcoin network couldn’t keep the price down. As the SegWit2x was cancelled in the last minute, a lot of users, investors and miners migrated to Bitcoin Cash – the hard fork of Bitcoin born in August 2017. This caused a few days of panic in the market, because the fees on the Bitcoin network were really high. A few hilarious statements were made in this period. But soon the network recovered as multiple investors and miners realized that this might be a coordinated P&D by the Bitcoin Cash community ( also known as Bcash).
The Legacy of Satoshi Nakamoto Continues
At almost 9 years since it was born, Bitcoin’s value went from 1309.03 BTC for $1 to $10,000+ for 1BTC. It already proved anyone that it can be a valuable investment as well as an easy way of payment. This year, the Bitcoin’s market cap is larger than McDonalds, IBM or Disney.
Day by day, more users are knowing about Bitcoin. And more people want to know more about it. With the current Bitcoin evolution and the growing media coverage, Bitcoin could actually surpass gold’ market cap in a shorter time than expected.
In this moments, I think we owe ten thousand thanks to Satoshi Nakamoto. Not because some people got extremely rich out of this, but because he offered us a new insight of how an economy should work and a great way to transfer funds by cutting the middleman – the banks.