Bitcoin

Phenomenal Growth of Bitcoin Since 2009

Satoshi Nakamoto, the creator of bitcoin, after registering the domain bitcoin.org in August 2008 and releasing a paper dubbed Bitcoin: A Peer-to-Peer Electronic Cash System in October 2008, mined the first ever block on the bitcoin network called the genesis block at the beginning of 2009. Satoshi receiving 50 bitcoins award for mining a block also executed the first-ever transaction using bitcoin by sending 10 bitcoins to Hal Finney. Since then, bitcoin has only grown to become the world’s largest cryptocurrency by market cap.

In the very beginning, when an exchange was established where bitcoin could be traded for U.S. dollars, about 1,309 bitcoins could be bought against a U.S dollar. Even in 2010, the price of bitcoin remained less than $1. A very famous incident happening in the past was the purchase of 2 pizzas from Papa John’s for 10,000 bitcoins. At that time, the actual expenditure for the pizzas summed up to $25 which means that 0.0025 cents could be used to purchase 1 bitcoin.

READ ALSO: 10 Major Companies who Accept Bitcoin as Payment

Progressing towards the mid of 2010, bitcoin price grew about 10 times in magnitude in the month of July. Back then, rising from $0.008, the price of bitcoin became $0.08. Continuing the journey of highs and lows for another couple of years, bitcoin, having a worth of several thousand dollars, has now become the leading cryptocurrency of the world.

Hovering above $8,000, the world’s first truly decentralized digital asset has come a long way to prove its potential and capabilities. Surpassing many other stores of values, even the gold, bitcoin has shown a remarkable 720,000,000% price surge since its inception. This order of magnitude of growth was managed by bitcoin in only a decade whereas gold managed to a mere 64 times increase in price over a century.

While the performance of bitcoin is outstanding since its inception, the digital asset has outclassed all other assets in the last 7 years by giving as much as 144,912% returns for people who had bought it seven years ago. The volatile nature of bitcoin in addition to making itself a risky investment is capable of returning massive gains.

Bitcoin is entirely dependent on the fundamentals of supply and demand. This means that only a change in the dynamics of bitcoin’s supply or demand will affect its price. As the supply of bitcoin will reduce over time, investors are waiting for the fundamentals to kick in so that bitcoin can break its previous all-time high (ATH) and result in enormous profits.

READ ALSO: BAKKT. Is it Good or Bad for Bitcoin?

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Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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