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12 years with bitcoin; The ups and downs of the king of digital currencies from birth to now

Last week was the birthday of WhitePaper Bitcoin. There is no celebration for it and no cake. Bitcoin Friendship Network is decentralized and its creator is anonymous. However, Bitcoin Bitcoin has had a profound impact on the world since its release. A lot has happened over the years. دیکریپ در an essay It reviews some of the most important events in the 12-year history of Bitcoin, which we will examine below.

2008; Birth of Bitcoin

Our story began on October 31, 2008. On this date, Satoshi Nakamoto, the anonymous creator of Bitcoin or a team of creators, released the white paper of this digital currency; A peer-to-peer electronic cash system. In this white paper, Nakamoto drafted a plan that would allow Online payments are sent directly from person to person without having to go to a financial institution.

Just one month earlier, Lehman Brothers, one of the largest investment banks in the United States, had filed for bankruptcy following the 2008 financial crisis. This was the reason for the existence of Bitcoin. As the centralized US financial system struggled, an opening was made in the market for a decentralized system to save itself from this burning ship.

2009; The first year of bitcoin

2009 was the year Bitcoin was launched. In January, the Bitcoin code was released as open source software and Genesis Block was extracted. Nakamoto mined the first 50 bitcoins, though they were worthless at the time. A few weeks later, Nakamoto sent 10 bitcoins to Hal Finney, the first bitcoin transaction between the two. When Bitcoin became one year old, WikiLeaks released 400,000 documents about the Iraq war, and the perpetrator of the car bombing in New York’s Times Square that failed to blow up the New York tourist area was sentenced to life in prison.

2010; Bitcoin Pizza Day

In the days leading up to the second anniversary of Bitcoin’s birth, Instagram was launched. The photo-sharing app was launched on October 6 of that year. Bitcoin was worth about $ 0.20 in 2010 and rose to $ 0.39 during the same year. Nakamoto, who mined about one million bitcoins that year, provided the source code for the digital currency to Gavin Andresen. 2010 is also known as Bitcoin Pizza Day; On May 22, Laszlo Hanyecz paid 10,000 bitcoins to buy two pizzas from Papa John’s restaurant. At current prices, the two pizzas are worth more than $ 137 million.

12 years with bitcoin;  The ups and downs of the largest digital currency since birth
Laszlo Hannick, the man who paid 10,000 bitcoins to buy two pizzas

Years later, Hanik still felt positive about the multimillion-dollar purchase, he told the New York Times:

Bitcoin was of little value at the time, so the idea of ​​trading it was incredibly appealing. No one knew that bitcoin would one day become so valuable and great.

2011; The first bitcoin bubble

Bitcoin became popular in 2011 and it was not long before the black markets noticed this digital currency due to its semi-anonymous nature. Silk Road was a black market in Darkoob that traded bitcoins for weapons, drugs and other illicit smuggled goods, opening the door to bitcoin.

In 2011, the first bitcoin price bubble formed. The price of Bitcoin rose rapidly and reached $ 31.50 on June 8 of that year (June 18, 2011). But on the third anniversary of Bitcoin, its price dropped to $ 3.12. The first signs of the sharp price fluctuations of bitcoin, whose effects on this digital currency remain to this day, appeared this year.

Bitcoin also faced a rival in its third year of birth. Litecoin was launched in October 2011 as “Silver for Bitcoin Gold”. Elsewhere in the world, Libyan dictator Muammar Gaddafi was assassinated during a popular uprising known as the Arab Spring.

2012; Unstoppable

On October 31, 2012, there was a victory for Bitcoin. On that day, the New York Stock Exchange resumed operations after two days of closure due to Hurricane Sandy. Bitcoin remained usable throughout this period, providing a major reason for the power of its decentralized network.

Bitcoin prices continued to rise throughout the year. It peaked at $ 12.4 in October. The price of Bitcoin, which averaged $ 5.27 this year, rose 1.656 percent from 2011.

In September, Gwyn Anderson, Jon Matonis, Patrick Murck, Charlie Schrem, and Peter Vessenes founded the Bitcoin Foundation. Bitcoin Payments Service, Bitcoin, announced that thousands of acceptors have started accepting payments made with Bitcoin.

2013: Silk Road was closed

In February 2013, the Base Exchange reported that sales had exceeded $ 1 million, and in March of that year, the Bitcoin market value exceeded $ 1 billion. Silk Road, which opened in 2011, was seized in October with an AFBI attack along with 26,000 bitcoins. Silk Road founder Ross Ulbricht is currently serving a life sentence without parole. In 2020, he spent his seventh year in prison in prison. Prosecutors in the Silk Road case claim that between 2011 and 2013, Ulbricht sellers made $ 214 million.

12 years with bitcoin;  The ups and downs of the largest digital currency since birth
Ross Ulbricht, founder of Silk Road

The market value of Bitcoin on its third anniversary exceeded two billion dollars, and the price of each bitcoin reached more than $ 200. Elsewhere in the world, Peter Higgs and Alice Munro won the Nobel Prize.

2014: A nation of gags falls

On the sixth anniversary of Bitcoin, the market value of this digital currency was more than $ 4 billion. The price of each bitcoin reached $ 329 and its daily trading volume exceeded $ 13 million. But things did not go well in the world of digital currencies. In February, Mt. Gox digital currency exchange suspended its account withdrawal service for its users. The move came after 744,000 bitcoins were lost, valued at $ 473 million at the time, or 6 percent of the world’s total bitcoin inventory. About 200,000 missing bitcoins were recovered and the rest of the bitcoins were lost forever.

12 years with bitcoin;  The ups and downs of the largest digital currency since birth
Gathering of the losers in protest of the’s exchange of money

2015: Increasing trading volume

The market value of bitcoin at the end of October 2015 (November 2015) was $ 4.6 billion and the price of each bitcoin was $ 312. Although the price and value of the Bitcoin market were stagnant, its daily trading volume increased dramatically to $ 52 million. Outside of bitcoin and digital currencies, China began building an island in the South China Sea, and Russia became embroiled in the Syrian war.

2016: Bitcoin becomes the main trend

In 2016, the price of bitcoin began to rise. On the anniversary of the birth of the Bitcoin white paper that year, the daily trading volume of this digital currency reached $ 93 million, its market value reached $ 11 billion and the price of each bitcoin reached $ 703. Many prominent businesses started accepting bitcoins. These included the Valve’s Steam video game store, as well as Uber, a car-sharing company.

In October, Colombia signed a peace agreement with the FARC rebels. Also at a hotel in Paris, $ 10 million was stolen from Kim Kardashian. If Kardashian kept this amount of money in the form of bitcoin…

2017: Bitcoin bubble

2017 (2017) Donald Trump took office as the new President of the United States. This year was the year of the bitcoin bubble for digital currency holders.

On the anniversary of the birth of the Bitcoin White Paper, the price of each unit of this digital currency was $ 6,131 and its market value was over $ 100 billion. This figure is attributed to the listing of bitcoin futures on the Chicago Mercantile Exchange. This made it easy for many people around the world to bet on Bitcoin. Bitcoin traded at $ 460 million on the Chicago Mercantile Exchange in its first week. The price of Bitcoin reached more than $ 20,000 in December in an unprecedented jump. On December 7, approximately 50 billion bitcoins were traded.

12 years with bitcoin;  The ups and downs of the largest digital currency since birth
The big bitcoin price bubble broke in late 2017

2018: Downward; But not to the end

In 2018, everything went wrong. The market was based entirely on speculation and reversed. In February, the price of Bitcoin fell to $ 6,538, promising a difficult year. On the tenth anniversary of the release of Bitcoin White Paper, it was priced at $ 6,325. The market value of this digital currency was still in good condition with $ 109 billion. The fall in the price of bitcoin was met with a strong reaction from major media and social networks.

Twitter, Facebook and Google have banned ads related to digital currencies, including bitcoin, as expected. Google and Facebook later lifted the ban. On the other hand, Facebook was trying hard to launch its own digital currency, Libra.

2019: Return of Bitcoin

Following a sharp drop in prices in 2018, the market quickly returned in 2019. Bitcoin started the year at $ 3,764 and rose to $ 13,796 in July. Since then, the price of bitcoin has fluctuated sharply. But Chinese President Xi Jinping’s praise of the Blockchain, the underlying technology of bitcoin, kept the price of bitcoin relatively high and strong.

On the 11th anniversary of the birth of Bitcoin White Paper, each bitcoin was valued at about $ 10,000 and reached a market value of $ 165 billion. By that time, the bitcoin network consisted of 55,000 nodes, while 820,000 addresses had traded bitcoins.

2020: Price ceilings the new

Bitcoin had a strong start in 2020. As the bitcoin move approached, there was a lot of excitement in the market, but few could predict how it would end this year, as the March coronavirus outbreak affected the entire world. The turmoil caused by the outbreak of the Corona virus initially lowered the price of bitcoin to below $ 4,000.

But with the introduction of large economic stimulus packages following quarantine around the world, bitcoin regained its position, and investors seeking refuge to protect their capital from inflation turned to the digital currency. Then, the price of Bitcoin reached $ 10,000 and remained in the same price range until the end of the summer. The occurrence of a series of financial shocks faced by the global economy seems to have proven that bitcoin is less vulnerable. In fact, bitcoin is not only resistant to shocks and stresses, but also works stronger in this regard.

Then a lot of money flowed into investing in bitcoin. Institutional investors such as Grayscale and Square invested large amounts in bitcoin. On the other hand, PayPal, the digital payment giant, opened the door to the widespread acceptance of digital currencies by introducing a new feature of digital currency trading on its platform.

The news of PayPal entering the world of digital currencies has pushed the price of Bitcoin to more than $ 13,000. On the twelfth anniversary of the birth of Bitcoin White Paper, the price of this digital currency reached its highest level since 2018 (1397). People who used to attack bitcoins, from Micro Strategy CEO Michael Saylor to JP Morgan, now make complimentary statements about bitcoin.

12 years with bitcoin;  The ups and downs of the largest digital currency since birth
Micro-Strategy CEO tweets in praise of Bitcoin

One thing seems certain; No matter what happens next, Bitcoin is in a completely different position than it was 12 years ago, when it first appeared in the world.


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