Bitcoin’s journey to the top of 67,000 USD

Full 13 years after appearing and “tapping” the cryptocurrency market, Bitcoin peaked at $66,998 per coin at the end of October.

Bitcoin White Paper

On October 31, 2008, Satoshi Nakamoto – dubbed the “father” of Bitcoin but remains anonymous until now – released a white paper on this digital currency. He compiled a necessary list, sent to those with the same goal of creating an unregulated digital currency, through the crypto forum Metzdow.

Email attached to Satoshi Nakamoto's Bitcoin white paper.

Email attached to Satoshi Nakamoto’s Bitcoin white paper.

Nakamoto’s letter was titled “Bitcoin P2P e-cash paper”. The accompanying white paper explains that the digital currency is completely peer-to-peer (P2P) and does not require third-party authentication. Through a peer-to-peer network, Bitcoin will settle transactions twice as fast, allowing network participants to be anonymous and secured through a consensus algorithm (PoW).

At that time, the Bitcoin white paper was not received in the way that people expected. Only a small number of people see Nakamoto’s emails, voicing their thoughts and concerns.

“Satoshi with his vision solved problems that his predecessors couldn’t,” said Leo Matchett, co-founder and CEO of film-making company Decentralized Pictures, one of the first to access the Bitcoin white paper. , talk to CoinTelegraph.

Other experts also called the white paper “the beginning of a new era of monetary systems” for presenting the idea that decentralization has more value than centralization. Nakamoto’s original purpose with Bitcoin was to solve many problems when it comes to transactions.

Bitcoin Network Launch

After the white paper came out, the discussion about Bitcoin increased. The Bitcoin network launched in early 2009 under the leadership of PGP Corporation expert Hal Finney. Finney is well known in the crypto world, having participated in the first Bitcoin transaction. Once set up, he posted on Twitter that he was “running Bitcoin”.

Hal Finney's tweet about operating Bitcoin 2009.

Hal Finney’s tweet about operating Bitcoin 2009.

Finney, who died in 2014 of illness, describes his work with Nakamoto as completely enigmatic. He said he started mining Bitcoin on so-called “block 70 something”. After some email exchanges, Nakamoto sent him 10 Bitcoins to check if the transaction network was running smoothly.

Transaction networks didn’t ask for a fee yet, so the transaction fee of these 10 coins was zero. Bitcoin was also worthless back then, but the transaction helped both fix some important bugs in the early days.

A year later, 2010, the first commercial Bitcoin transaction took place.

10,000 Bitcoins for 2 pizzas

The price of Bitcoin was fixed on a decentralized exchange on October 5, 2009, starting at 1 USD = 1,309.03 Bitcoin, or 1 Bitcoin = 0.00076 USD. But the first commercial transactions took more than half a year to be realized.

On May 18, 2010, on the Bitcointalk forum, developer Laszlo Hanyecz said he had bought 10,000 Bitcoins and offered to pay a member this coin if they delivered him 2 large pizzas.

The post was met with great skepticism, as 10,000 Bitcoins was not worth the price of a pizza at the time. But on May 22, Hanyecz announced “successful transaction”.

Announcement of successful purchase of pizza with Bitcoin by Hanyecz.

Announcement of successful purchase of pizza with Bitcoin by Hanyecz.

Despite the low value and small community size, buying something with Bitcoin is considered an important milestone. May 22 is known as Bitcoin Pizza Day by the crypto community. If we calculate the current value of Bitcoin, the two pizzas above are worth more than $650 million.

In May 2011, the first Bitcoin investor Greg Schoen posted a famous tweet. In it, he expressed regret for selling 1,700 Bitcoins for $0.3, when the coin reached $8. And now he may regret more because the amount of Bitcoin above is equivalent to 120 million USD.

Greg Schoen buys Bitcoin when the price reaches 0.06 USD and sells when it is at 0.3 USD.

Greg Schoen buys Bitcoin when the price reaches 0.06 USD and sells when it is at 0.3 USD.

Bitcoin started to attract attention in 2012 when there were many articles about this digital currency around the world. The price of this coin increased steadily and reached the $1,000 mark in March 2013. But in February 2014, Bitcoin exchange Mt.Gox filed for bankruptcy in Japan due to the loss of 750,000 Bitcoins of customers and 100,000 Bitcoins of this exchange, the reputation of this digital currency plummeted, from a peak of 1,242 USD. down to 152 USD.

However, by the end of 2017, Bitcoin hit a new peak of $20,000 per coin. But before the Chinese government’s restrictions, the price of this digital currency returned to the $10,000 mark in 2018 and down to less than $4,000 in 2019.

Since September 2020, Bitcoin has continuously increased in value. By May of this year, the price of each digital coin reached 63,000 USD. Before hitting $66,998 at the end of October, Bitcoin dropped to $30,000 in June amid criticism for its power consumption and repression in China.

Bitcoin Futures

From a digital currency full of skepticism, Bitcoin has grown stronger thanks to the support of the mining industry, as well as many government organizations around the world. Earlier this year, El Salvador became the first country to accept Bitcoin.

On October 19, the first Bitcoin-based Exchange Fund (ETF) was listed on the New York Stock Exchange, helping to increase the value of this digital currency. According to PlanB, who is famous for his Stock to Flow model that specifically values ​​Bitcoin, the value of the digital currency will surpass $100,000 next month. Back in June, he almost accurately predicted the Bitcoin prices reached in August, September and October with the milestones of $47,000, $43,000, and $63,000.

Wall Street was skeptical of Bitcoin. However, according to a leaked internal analysis, analysts here believe that the price of this cryptocurrency could surpass 300,000 USD per coin this year.

In the distant future, Michael Saylor, CEO of business analysis firm MicroStrategy, believes that nothing will stop Bitcoin’s momentum in the next 10 years. He predicts the total market capitalization of Bitcoin could reach $300,000 billion in the long term, which translates to $14 million each.

However, some other experts believe that Bitcoin may be very volatile in the near future, due to the sensitive nature of the cryptocurrency market.

Bao Lam synthetic

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