Bitcoin: From obscure origins to conquering Wall Street, the history of the quintessential cryptocurrency

Introduction

Bitcoin is undoubtedly the most famous and influential cryptocurrency in the world. But how was this controversial digital currency born and how did it evolve? Let’s retrace the main stages of its fascinating history.

The mysterious beginnings: Satoshi Nakamoto’s whitepaper (2008)

In 2008, at the height of the global financial crisis, the whitepaper “Bitcoin: A Peer-to-Peer Electronic Cash System” was published online under the pseudonym Satoshi Nakamoto. It was the first technical description of what would become the Bitcoin blockchain and how it would work as a peer-to-peer electronic payment system. Nakamoto’s identity remains shrouded in mystery.

Launch and first transactions (2009-2010)

On January 3, 2009 the Bitcoin network went live with the release of the first open source client and the issuance of the first bitcoins. For over a year bitcoin was only used by a small circle of cryptocurrency enthusiasts. The first commercial transaction took place in 2010, when an American programmer exchanged 10,000 bitcoins for two pizzas.

The creation of Mt. Gox and the first speculation (2011-2013)

In 2011 Mt. Gox was born, one of the first bitcoin exchanges. Growing media coverage led to a rapid increase in the value of bitcoin, from a few cents to over $250. Periods of boom and collapse of the price followed, generating the first speculative waves.

From the rise to the collapse of Mt. Gox (2013-2014)

Between 2012 and 2013 there was a second explosion in the bitcoin price, exceeding $1,000 in November 2013. Mt. Gox became the main exchange, handling 70% of transactions, but in 2014 it was hacked causing its failure and losses of 750,000 bitcoins.

New exchanges emerge (2014-2016)

After the collapse of Mt.Gox, the Bitcoin ecosystem recovered with the birth of new more secure exchanges like Coinbase and Kraken. Other alternative cryptocurrencies like Ethereum also emerged, soon second in capitalization after Bitcoin.

Maturation and institutional interest (2016-2020)

Despite the Mt. Gox shock, in subsequent years bitcoin established itself as the leading cryptocurrency, with an increasingly mature ecosystem. After fluctuating ups and downs, its value exceeded $10,000 in 2017, approaching $20,000 in December 2017 before another collapse.

New price explosions (2020-2021)

Driven by growing demand and institutional investment, the bitcoin price began a new dizzying rise in 2020, exceeding $60,000 in 2021. Mainstream companies and financial institutions began to take an interest in blockchain and Bitcoin.

Future prospects (2021-today)

Despite high volatility and significant environmental impact of mining, Bitcoin’s future looks promising thanks to its brand awareness, digital scarcity and widespread use. Regulation will play a key role in its evolution as a global financial asset.

Conclusion

Starting from its obscure and unknown origins, in just over ten years bitcoin has made an extraordinary rise, establishing itself as the leading global cryptocurrency and attracting the attention of powerful investors and financial players, up to Wall Street. Despite distrust and speculative bubbles, this revolutionary technology still has the potential to transform the monetary system.