Bitcoin is the first decentralized digital currency, created in 2009 by an anonymous person/group using the pseudonym Satoshi Nakamoto. It operates on a public ledger called the blockchain, which records all transactions without banks or governments. BTC is scarce (capped at 21 million coins), secured by cryptography, and powered by a global network of computers ("miners").
2008: Satoshi Nakamoto publishes the Bitcoin whitepaper, proposing a peer-to-peer electronic cash system to solve double-spending and trust issues.
2009: The Bitcoin network launches with the mining of the genesis block (Block 0). Early miners (like Hal Finney) test the system, earning BTC when it had no monetary value.
2010: First real-world transaction: Programmer Laszlo Hanyecz buys two pizzas for 10,000 BTC (≈
600milliontoday).Bitcoin’svaluebeginsat0.0008.
2011-2013: Bitcoin gains traction as a payment tool (e.g., Silk Road dark web marketplace). Price surges from
1to260 in 2013, followed by a crash to $50 after Mt. Gox (major exchange) collapses.
2017: BTC hits
20,000amidhypearoundblockchaintechandICOs(InitialCoinOfferings).Retailinvestorsfloodin,butpricesplummetto3,000 by 2018.
2020-2021: Institutional adoption surges (Tesla, MicroStrategy buy BTC). COVID-era stimulus fuels speculation; BTC hits an all-time high of $69,000 (Nov 2021).
2022: Market crashes (down to $16,000) due to rising rates, the Terra/LUNA collapse, and exchange failures (FTX).
2023-Present: Recovery begins as institutions like BlackRock push for a Bitcoin ETF. Price stabilizes around
25,000−30,000 (2023) and rises in 2024 amid ETF approvals.
Key Factors in Bitcoin’s Evolution:
Halvings: Supply cuts every 4 years (e.g., 2012, 2016, 2020, 2024) to enforce scarcity.
Regulation: Governments debate bans vs. adoption (El Salvador made BTC legal tender in 2021).
Narrative Shifts: From "digital cash" to "digital gold" and inflation hedge.
Bitcoin remains volatile but influential, reshaping finance and sparking debates about money’s future.