Looking Back at the 10 Year History of Bitcoin

This guide provides a clear, practical overview of looking back at the 10 year history of Bitcoin, with useful context, important details, and straightforward takeaways for everyday readers.

2009

The first bitcoins were mined in a block of 50 coins called 'Genesis Block' on March 1, 2009. Bitcoin mining requires many computers to work through complex math to verify transactions. Computers compete with each other to verify a group of transactions, called 'blocks'. The fastest computer or miner that can confirm the block is rewarded with bitcoins.

The concept of bitcoin and the blockchain or blockchain technology behind it is presented in a technical specification document published in October 2008 by Satoshi Nakamoto, whose true identity remains a mystery to this day. Mr. Nakamoto envisions bitcoin as an alternative form of cryptocurrency that does not need the backing of governments or financial institutions. The first bitcoin transaction took place on January 9, 2009 between Mr. Nakamoto and software developer Hal Finney.

2010

It is believed that the first real-world bitcoin transaction was performed by programmer Laszlo Hanyecz Hanyecz in May 2010. This man spent 10,000 bitcoins to buy two Papa John's pizzas. Currently, the two cakes are worth more than 30 million USD in bitcoin time.

Bitcoin gained public attention in late 2010 with the launch of the Mt. Gox, based in Tokyo, allows investors to trade bitcoin, which was valued at around $0.07 per bitcoin for most of 2010, according to CoinDesk.

2011

2013

Bitcoin hit $1,000 for the first time in November 2013, but didn't hold the price for long. Bitcoin closed 2013 at $700, according to data from CoinDesk.

Year 2014

MT. Gox, which handles about 70% of all bitcoin transactions, declared bankruptcy after hackers stole nearly half a billion dollars worth of bitcoin. The hack made many investors worried and showed that this segment has not been specifically regulated and managed. By the end of 2014, the price of bitcoin was only 300 USD, and it maintained this level for the next three years.

2017

The momentum behind bitcoin began to emerge in early 2017, when the price of each coin surpassed $1,000. Many investors like the idea of ​​a decentralized currency. They try to find the same safe-haven investment as gold.

To meet the increased demand, two US exchanges, CME and CBOE, open platforms for customers to trade bitcoin futures contracts. The bitcoin price skyrocketed during the year, going from $2,000 in July 2017 to nearly $20,000 in the last month of the year.

2018

The bitcoin price fell from a record high to around $4,000 late last year as investors feared the bubble burst. At the same time, many global regulators are starting to get tougher on cryptocurrency trading, causing prices to fluctuate wildly. At the end of the year, many hedge funds, retail investors and traders who bet big on bitcoin suffered heavy losses as its price plummeted.