• Bitcoin was created in 2008 as an alternative to the existing system of centralized, credit-based money.
• Bitcoin’s price has had a turbulent history, with multiple appreciations of 1,000% and drops of up to 90%, but it has always bounced back.
• From $0 in 2009 to $68,000 in only 13 years, bitcoin’s journey is one of resilience and innovation.
Bitcoin was created in 2008 to challenge the existing system of centralized, credit-based money issued by bureaucrats and unstable banks. By trusting code instead of human vulnerabilities, bitcoin offered a way out of that debacle. At first the new invention was nothing more than an experiment, but those who read the white paper and were knowledgeable of cryptography, money and finance could already see it turning into something much bigger than a simple cryptographic toy.
Figures vary somewhat based on the data source chosen, especially in the first few years: In 2010 bitcoin didn’t have a market price; it had no premine or any rounds of investment from big venture capital firms. Something changed in 2010 when it started to be traded for goods and services which would set it on the path toward today’s innovative monetary system — a journey from $0 in 2009 to $68,000 in only 13 years.
Halving Cycles Impact
Price swings in bitcoin are mainly driven by its own halving cycles as well as macroeconomic events. The halving cycle is designed such that every 210k blocks mined (roughly every 4 years), the number of bitcoins rewarded for mining will be cut by half — this has implications for its scarcity and pricing structure over time. Additionally macroeconomic events such as coronavirus pandemic can also drastically affect its price movements due to their influence on consumer sentiment about digital currencies like bitcoin.
Declarations Of “Death”
How many times has bitcoin been declared dead? At least 463 times! And it’s never been because of its monetary system failing or its technical operation breaking down but rather because of its price crashing suddenly due to macroeconomic events or other factors outside its control. Every single time though, bitcoin has bounced back — proving some seasoned investors wrong and winning new supporters along the way!
In conclusion, despite all odds against it — including declarations that it is dead — bitcoin has proven resilient yet again through rising above setbacks faced over various halving cycles and macroeconomic events throughout its history so far. Its success story cannot be denied – from being worth practically nothing 13 years ago ($0) to now being worth almost seventy thousand dollars ($68K). It remains to be seen what further heights this innovative currency can reach going forward!