- Introduction::Bitcoin was introduced in 2008 through a whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System by the pseudonymous Satoshi Nakamoto.
- Mining: The first Bitcoin block, known as the Genesis Block (Block 0), was mined on January 3, 2009, marking the conceiving of the Bitcoin blockchain.
- Milestone: US$ 1,000 (November 2013): Bitcoin reached the US$ 1,000 milestone for the first time in November 2013. It was driven by early adoption, speculative interest, and the rise of crypto exchanges. Events like the Cyprus financial crisis and increasing recognition of Bitcoin as digital gold contributed to this milestone.
- Milestone: US$ 5,000 (October 2017): By October 2017, Bitcoin surged to US$ 5,000, charged by growing public awareness and institutional interest. This period also witnessed the rise of Initial Coin Offerings (ICOs) and increased global regulatory discussions around cryptocurrencies.
- Milestone: US$ 10,000 (November 2017): Bitcoin reached US$ 10,000 in November 2017, during a historic bull run. The rise was largely driven by a combination of retail speculation, global media attention, and a burgeoning ecosystem of crypto-related businesses and technologies.
- Volatility and Bear Markets (2018-2019): Bitcoin's price crashed to below US$ 4,000 by early 2018 after touching a peak of US$ 20,000 in December 2017, owing to regulatory crackdowns, ICO failures, and market corrections. Despite this, infrastructure improvements like Lightning Network development and institutional custody solutions laid the groundwork for future growth.
- Milestone: US$ 50,000 (February 2021): Bitcoin attained US$ 50,000 in February 2021 amid unprecedented institutional adoption. It included investments by Tesla and MicroStrategy. The COVID-19 pandemic accelerated the shift to digital assets. It resulted in Bitcoin becoming a hedge against inflation and fiat currency devaluation.
- Regulatory and Adoption Milestones (2021-2022): Country like El Salvador become first one to adopt Bitcoin as a legal tender. It signaled increasing acceptance on a global scale. However, regulatory scrutiny in regions like China (crypto mining bans) and debates around energy consumption highlighted ongoing challenges.
- Technological Advancements: Innovations like Taproot (a Bitcoin upgrade improving privacy and scalability) and the integration of Bitcoin into financial services platforms or a mode of payment boosted confidence in its long-term utility.
- Milestone: US$ 100,000 (December 2024): Bitcoin's journey to US$ 100,000 is supported by factors like increasing institutional investments, mainstream acceptance, limited supply (21 million cap), and its role as a store of value. The ensuing Presidency change in US and spontaneous approval of Bitcoin ETFs brought buoyancy in the cryptocurrency prices. Growing global macroeconomic uncertainty and advancements in blockchain technology continue to position Bitcoin as a significant asset class, having surpassed market capitalization of US$ 2 trillion.
- Future Outlook: Bitcoin's evolution into a global asset is shaped by its resilience against regulatory challenges, increasing integration into mainstream financial systems, and the maturing of the cryptocurrency ecosystem. The volatile journey of Bitcoin reflects a shift in the global financial paradigm. The attainment of milestones mark its growing acceptance and utility.
Frank Veroustraete
Do's and don'ts of crypto-coins.
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