The History of Bitcoin: From Zero to $108,135

The pre-Bitcoin era was marked by attempts to create digital currencies, such as Digicash, which was developed by David Chaum in 1990. However, these currencies failed to gain widespread adoption due to various factors, including the lack of a decentralized network and the inability to fully anonymize transactions.

The birth of Bitcoin

Bitcoin was first introduced to the world in 2008 by an anonymous person — or a group of people — known as Satoshi Nakamoto. The goal was to create a decentralized digital currency free from the control of governments and central banks. Bitcoin was designed to be scarce, with a limited supply of 21 million coins, and to be transacted securely and anonymously over a peer-to-peer network.

The first Bitcoin transaction took place on May 22, 2010, when Laszlo Hanyecz, a programmer from Florida, paid 10,000 BTC for two Papa John's pizzas. The event, which became known as Bitcoin Pizza Day, marked the first time that Bitcoin was used to purchase a physical good.

In the early years, Bitcoin was traded primarily on niche exchanges and forums, and its value fluctuated significantly. However, as more people began to adopt the cryptocurrency, its liquidity and market capitalization increased substantially.

By 2017, Bitcoin had become a mainstream financial asset, with major exchanges, investment funds, and even some banks offering Bitcoin trading services. The cryptocurrency's price surged to an all-time high of nearly $20,000 in December 2017, driven by a combination of factors, including the increasing demand, the launch of Bitcoin futures contracts, and the bull market in traditional financial markets.

The following year, Bitcoin was hit hard by another hack when the crypto exchange Coincheck lost $530 million. The incident led to a decline in the cryptocurrency's price and a loss of confidence among some investors.

The pandemic as a Bitcoin boom

Despite the setbacks, Bitcoin continued to gain support from a wider range of investors and institutions, especially during the COVID-19 pandemic. The pandemic caused widespread economic disruption and a flight to digital assets, as traditional investment options became less attractive.

In 2021, Bitcoin was being added to 401(k) plans and getting support from big names like Tesla CEO Elon Musk. The cryptocurrency's price surged again, reaching a new all-time high of $73,000 in March 2024 due to the SEC’s approval of spot Bitcoin ETFs, followed by the U.K.’s approval of Bitcoin-linked securities being listed on the stock market.

Bitcoin received support from Donald Trump during the 2024 U.S. presidential election, and after his victory, it surged to an all-time high of $108,135 on December 17, 2024.