Bitcoin (BTC), as the first decentralized cryptocurrency, integrates the evolution of technological revolution, financial experimentation, and social thought. The following is a systematic review based on its key stages:
1. Origin: Technological Experiment in Crisis (2008–2009)
1. Birth Background
- The 2008 global financial crisis exposed the centralized risks of the traditional financial system (e.g., bank bailouts and currency overissuance), generating demand for decentralized currency.
- On October 31, 2008, a mysterious figure using the pseudonym 'Satoshi Nakamoto' released the white paper (Bitcoin: A Peer-to-Peer Electronic Cash System), proposing a blockchain-based electronic cash system to solve the double-spending problem.
2. Genesis Launch
- January 3, 2009: Satoshi Nakamoto mined the 'genesis block' (Block #0), embedding the headline from The Times: 'Chancellor on brink of second bailout for banks,' satirizing the traditional financial system.
- January 12, 2009: The first Bitcoin transaction—Satoshi Nakamoto sent 10 BTC to cryptographer Hal Finney, validating the feasibility of peer-to-peer transactions.
2. Early Development and Challenges (2010–2016)
1. First Real-World Application and Rise of Exchanges
- May 2010: Programmer Laszlo Hanyecz purchased two pizzas for 10,000 BTC (now known as 'Bitcoin Pizza Day'), marking Bitcoin's first physical transaction.
- July 2010: The Japanese exchange Mt. Gox was established, later becoming the world's largest trading platform (accounting for over 70% of trading volume in 2013).
2. Market Volatility and Security Crisis
- 2011: Bitcoin's price first surpassed $1, with Mt. Gox being hacked that same year, causing the price to plummet to $0.01.
- 2013: The Cyprus banking crisis propelled Bitcoin to be seen as a 'safe-haven asset,' with prices soaring to $1,000.
- 2014: Mt. Gox went bankrupt after 850,000 BTC (valued at $450 million) was stolen, triggering regulatory awakening (e.g., New York State launched BitLicense).
3. Technological Evolution and Halving Cycles
- November 2012: First halving, reducing block rewards from 50 BTC to 25 BTC.
- July 2016: Second halving, rewards decreased to 12.5 BTC, establishing scarcity consensus.
3. Mainstream Breakthrough and Controversy (2017–2019)
1. Price Bubble and Fork Controversy
- December 2017: Bitcoin's price approached $20,000, with retail and institutional investors entering the market driving prices higher.
- Scaling Dispute: Community disagreements over block size led to a hard fork, resulting in the birth of Bitcoin Cash (BCH).
2. Technological Upgrades
- 2017: Segregated Witness (SegWit) was activated, improving transaction efficiency.
- 2018: The Lightning Network went live on the mainnet, supporting small instant payments.
3. Regulatory Winter
- China banned ICOs and domestic exchanges in 2017, with many countries globally strengthening compliance reviews.
4. Global Recognition and Institutionalization (2020–2024)
1. Institutional Entry and Financialization
- May 2020: Third halving (rewards reduced to 6.25 BTC), compounded by the global pandemic, companies like MicroStrategy and Tesla bought BTC as 'digital gold' to hedge against inflation.
- 2021: The first Bitcoin ETF launched in the U.S., and the Chicago Mercantile Exchange (CME) introduced futures contracts.
2. National-Level Adoption and Technological Upgrade
- September 2021: El Salvador became the first country to classify Bitcoin as legal tender.
- November 2021: Taproot upgrade activated, enhancing privacy and smart contract capabilities.
3. Fourth Halving and New High
- April 2024: Fourth halving (rewards drop to 3.125 BTC).
- March 2025: The U.S. classifies Bitcoin as a 'national strategic reserve asset,' promoting its entry into the mainstream financial system.
- May 2025: Price surpassed the historical peak of $111,970.
5. Current Situation and Core Controversies (2025)
- Position Evolution: From 'peer-to-peer cash' to 'digital gold,' focusing on value storage rather than everyday payments.
- Challenges:
- Volatility: Annualized volatility exceeds 60%, limiting payment practicality.
- Regulatory Discrepancies: Significant policy differences between countries like China and the U.S.; the U.S. advances compliance, while China prohibits trading but develops a central bank digital currency (DC/EP).
- Environmental Controversy: The energy consumption issue of Proof of Work (PoW) continues to provoke criticism.
Summary: From Marginal Experiment to New Financial Paradigm
The journey of Bitcoin is both a history of technological innovation (blockchain, halving mechanism, Layer 2 scaling) and a reconstruction of societal trust in currency systems. Its core contribution lies in proving that decentralized ledgers can replace traditional financial intermediaries, while the hard-coded scarcity of 21 million coins redefined the logic of 'value storage.' The future challenge is to balance compliance, scalability, and environmental sustainability, but its foundational status as 'digital gold' is unlikely to be shaken.
> Appendix: Key Nodes in Bitcoin Halving History and Price Evolution
> | Time | Event | Block Reward Change| Price Impact |
> | November 2012 | First Halving | 50 BTC → 25 BTC | Price rose to $1,000 the following year |
> | July 2016 | Second Halving | 25 BTC → 12.5 BTC| 2017 bull market peaked at $20,000 |
> | May 2020 | Third Halving | 12.5 BTC → 6.25 BTC| 2021 new high of $69,000 |
> | April 2024 | Fourth Halving | 6.25 BTC → 3.125 BTC| Breakthrough of $111,970 in 2025 |
