01
Aug

Bitcoin’s price history

Bitcoins price history

Bitcoin is known to everyone and is in great demand among crypto-currency investors. But it was not always so. The history of the world’s first crypto currency started in the distant now 2008 and at that time the coin was interested only in its founder and several enthusiasts. This article looks at how much bitcoin was worth the moment it appeared. Readers will also be able to trace the evolution of the crypto currency. To understand what is cost of bitcoin you can find bitcoins converter in internet.

Bitcoins chart

Many not without the reason believe, that about cryptocurrency for the first time have started talking at the end of first decade of 2000th. It was then that the first coin appeared – bitcoin, which for many years later became a true symbol of freedom and a tool for investment. However, the first thoughts in this direction appeared in 1998.
Writer and researcher Nick Szabo set about working out the mechanism of the decentralized system. It belongs to him the invention of Bitcoins Gold. The peculiarity of this cryptonet, according to the author, was that she is not exposed to the risks of ordinary money. It can not be faked or stolen. But most importantly, it does not experience inflation. Such money is not depreciated. Despite the fact that the development was successful, Nick Szabo was never able to launch the world’s first crypto currency. However, this did not mean that the idea itself is meaningless.

Bitcoins worth and beginning

In 2008, a certain Satoshi Nakamoto (who still does not know who it really is and whether this is a pseudonym for a whole group of developers) launched the world’s first crypto currency. Naturally, at that time bitcoin was not interested in anyone. Investors engaged in stock markets, which grew and promised huge profits. As for ordinary users, they did not believe in the possibility of creating alternative money and their active application in the real economy. Bitcoin appeared at the very end of 2008, and already in 2009 the first users paid attention to him. Initially, the number of those who were interested in the new currency was insignificant. After all, it was not taken anywhere as a means of calculation. The users of the network transferred the currency to each other. How much bitcoin cost at the time of its appearance? For one dollar, then from 700 to 1,600 units of crypto-currency were given.

And the rate was calculated not based on supply and demand, but as average power multiplied by the cost of electricity in the US. All this was divided into a number of bitcoins. The first coins appeared in early 2009. They were produced with the help of the PC CPU. The essence of this process was that users opened new blocks, in which transactions were recorded and for this they received compensation in the form of a certain number of bitcoins. To store electronic money, special software purses were used. At that time there was still no division into cold and hot storage.

First steps: bitcoins future

Bitcoin would remain just a game or a virtual currency without a future, if it were not possible to pay with this coin for real goods and services. The first such transaction was fixed in 2010. One of the network’s users bought a pizza for 10,000 BTC. For those times, it was about 25 US dollars. The popularization of bitcoin led to the fact that in 2010 the complexity of mining increased noticeably. This is due to the fact that the number of miners has increased significantly. In the same year 2010, the first online exchange service appeared, where it was possible to buy and sell the crypto currency.

In 2011, the first MT GOX exchange, created by Jed McCaleb, appeared. This infamous site at that time began to enjoy high demand, as it was the first of its kind. In the same year, quotations bitcoin significantly increased. Initially, you could buy a crypto currency for a few cents. But towards the end of the year, its value increased and now the coin was given to half a dollar of the United States.

Bitcoins: how to invest

So, about bitcoins investment and market. After the appearance of the exchange service, the stock exchange, the first purchase, as well as transactions through mobile phones, many turned their attention to this sphere, which previously was considered uninteresting and unpromising. And this led to two problems. First, the volatility on the stock exchange has significantly increased. The rate of bitcoin literally in a couple of days could grow to almost $ 30 per unit, and then sharply drop by half. The second problem associated with the popularization of bitcoin is hackers. They also fixed their eyes on this market. Hacking the bitcoin network was extremely difficult at that time. But this was not required. There were other vulnerable points. They include the exchange, for example.

The first hacking of MT GOX resulted in the attacker being able to access the administration account. Through it, he was able to create the appearance of selling a large volume of crypto currency at a low cost. As a result, the stock price of bitcoin fell to 1 price. Then, the same malefactor was able to acquire 2,000 bitcoins in total for 1 cent per unit. Soon, it was noticed by the administrators and stopped further actions. This is not the only case of hacking the stock exchange. In 2014, after a regular attack by hackers, large amounts of money disappeared from the accounts of customers, and the exchange ceased to exist.

At the end of 2013, for bitcoin was given already 1000 US dollars. In just five years the crypto currency has made a significant upward spurt. However, then the rate gradually decreased to $ 200 per unit. At the same time, the mining process became more complicated. Gradually the CPUs lost their relevance and they were replaced by video cards. But soon an increase in capacity was required. The video cards were replaced by farms, and then a device specially designed for mining – ASIC – was developed. What about bitcoins crash nobody can make prediction.

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