In 2021, the cryptocurrency community watched the price rally of the first cryptocurrency. Bitcoin hit its all-time high 2 times. Its price for the first time in history exceeded $60 thousand. After the first jump, there was a fall when the rate fell to $30 thousand. However, later it rose and in October 2021 again broke the record, having risen above $67 thousand.
Such high volatility may seem strange, at least to a person not familiar with digital assets. The reason for the October rise in the price of bitcoin is associated with the trading on the New York Stock Exchange of the first US ETF from ProShares. It is based on bitcoin futures and is presented under the ticker BITO.
The launch of such an ETF is of great importance for cryptocurrency. The US Securities and Exchange Commission, the main regulator, has given permission for the creation of bitcoin funds for the first time in several years. This greatly increases the legitimacy of the cryptocurrency.
The Main Ups and Downs of Bitcoin
Important dates for bitcoin:
- 2007 – the beginning of Satoshi Nakamoto’s work on blockchain development;
- 2009 – the creation of bitcoin;
- 2011 – the first impulse, the price increased to $32 per 1 BTC;
- 2013 – a jump in value up to $1000 for 1 bitcoin;
- 2017 – for the first time the price reached $5,000, at the end of the year reaching the value of $19,000;
- 2020-2021 is a period of new growth, renewal of historical highs in value.
The history of cryptocurrency begins in 2009. Then a certain Satoshi Nakamoto (his identity has not yet been revealed) created bitcoin. In the same year, the first transaction was carried out.
At the stage of formation and development, interest in bitcoin was shown exclusively by enthusiasts. They mined cryptocurrency, exchanged coins, studied algorithms. The general public was just beginning to learn about digital assets and discuss them. Bitcoin was of no value its value is 0.
In 2010, the first purchase of a real product for coins was carried out. Laszlo Heinitz bought 2 pizzas for 10,000 BTC. The cost of the product in the store was $50 (per pair). Bitcoin price was $0.0025.
2 years after the creation of the bitcoin blockchain and the extraction of the first blocks, a wide range of users will learn about the cryptocurrency. Its price has risen to $1 per 1BTC. The first crypto communities appear, publications well-known in digital circles write about cryptocurrency.
The Boom of Miners, Recognition of the World Media
Also, in 2011, the number of miners increased. Back then, coins could be mined on a simple home PC. However, in February, the hash rate (the speed of solving a mathematical problem for Bitcoin mining) increased sharply from 400 to 600 g/s. In June, the hash rate reaches a record 15.8 T/s (tera-hashes per second). This is due to the work of a “mysterious miner” – a person or organization that used a powerful computer to mine bitcoin. From this moment, the cryptocurrency boom begins.
The bitcoin price was influenced by the recognition of the major media. So, Time weekly wrote an article about cryptocurrency, after which the popularity of the coins increased sharply and the price reached $32 for 1 BTC, subsequently dropping to $10. This was in early June 2011. Such a sharp jump can be considered the first impulse of Bitcoin.
The same month saw the largest price drop in the history of cryptocurrencies. It fell from $17 to one cent per bitcoin. This is due to a hacker attack on the Japanese cryptocurrency exchange Mt.Gox, the largest at the time.
In 2012, there were no major events in the world of digital assets, except for the first halving (halving the reward for mining blocks by miners). The bitcoin price was kept in the range of $10-15.
Bitcoin Announced Itself With a Sharp Rise in Price
The following year, the price of bitcoin exceeded the psychological mark of 1000 USD. This happened on November 30, 2013. The cost of one coin was $1,153. Such a surge is associated with speculation in the cryptocurrency market. Unknown users on the Mt.Gox crypto exchange (which played a significant role for the cryptocurrency) artificially created the appearance of trading. Such manipulations led to the next major Bitcoin impulse.
In February 2014, the largest hack in the history of cryptocurrencies took place on the same Mt.Gox exchange – 744 thousand BTC were stolen. The site is closed by the owners, in the cryptocurrency market, there is a panic and a drop in the bitcoin rate. The period is known as the “cryptocurrency winter” has begun.
The Rise of the Crypto Industry
2017 was a landmark year for bitcoin – a period of a real boom. At the end of 2016, the price of the first cryptocurrency did not exceed $1000. But already in September, the cost of bitcoin increased 5 times, for the first time exceeding the $5,000 mark.
There are several reasons for this growth. For the first time, the state has recognized cryptocurrency. It happened on April 1, 2017, and it was Japan. In the same country, the store first began accepting payments in coins. Moreover, the legalization of cryptocurrencies took place in Belarus, the famous Decree No. 8 was issued, in which all digital assets and operations with them were officially allowed. On the contrary, China has banned cryptocurrency and this has affected the course. But the general trend was further growth. Moreover, in financial circles, they finally became interested in digital assets.
At the end of the year, bitcoin presented another surprise – on December 17, its price was $19,483. This is the absolute maximum in the entire history of its existence at that time. Next time the first cryptocurrency will exceed this value only in 2021.
The price of bitcoin in 2018 fell below $10,000, even reaching a value of 3-4 thousand dollars. Leading social media bans cryptocurrency ads, the Securities and Exchange Commission is fighting.
Further growth of bitcoin occurs only in 2020, despite the onset of the global economic crisis associated with cryptocurrency. At the end of this year, the bitcoin price reached $19,000 again.
The beginning of 2021 was marked by a further increase in the price of bitcoin. Moreover, each new month led to historical highs:
- January – over $40,000;
- February – over $50,000;
- March – over $60,000;
- April – the all-time high on April 13, Bitcoin was worth $63,600.
The bitcoin rate was largely influenced by the statements of companies and banks. So, after Elon Musk’s statement about the possibilities of buying Tesla for bitcoins, its rate has grown. Soon the company changed its mind about working with cryptocurrency – the price fell. At the same time, Musk continues to invest in coins.
In October 2021, bitcoin again surprised everyone with its maximum growth – the price exceeded $67,000 and this is the highest value in the history of the cryptocurrency.
According to analysts’ forecasts, the bitcoin rate may rise again at the beginning of 2022. However, some skeptics predict a fall in value. Throughout its short history, Bitcoin has always amazed experts and ordinary users. The high volatility of the cryptocurrency and the dependence of the exchange rate on various factors do not allow making accurate forecasts.