Sunny

Written by Sunny

Modified & Updated: 21 May 2024

10 Facts About Bitcoin’s Price History and Forecast
Table of Contents

Bitcoin, the world’s first cryptocurrency, was launched in 2009. The coin was released onto the market at such a low price point that it was virtually worth nothing when it first started. However, over the years the Bitcoin price has changed and increased, with ups and downs along the way. Investors who bought in early are now finding themselves in a unique position, with their Bitcoin going from being worth pennies to worth thousands. Bitcoin has gone from a coin that many did not believe would survive to the world’s most valued and sought-after cryptocurrency.

In this article, we’ll explore facts about Bitcoin’s price history and forecast for the years ahead.

Bitcoin’s first recorded transaction was for as little as $0.0009

After Bitcoin launched in 2009, it was nearly worthless and between 2009 and 2015, there were very few transactions recorded. However, in October of 2009, the first transaction to ever give Bitcoin value was completed via PayPal by a Computer Science student from Finland named Martii Malmi, known online as Sirius. Martti sold 5,050 Bitcoins via PayPal for a total of $5.02. This transaction gave Bitcoin a value of $0.0009 per coin at the time.

In these early years, Bitcoin was not sold or traded very much. It was primarily used by early adopters, hobbyists, and experimental miners, so there are not many transactional records. In fact, Alex Preda who is a professor of professions, markets, and technology at Kings Business School in London shared that in regards to the early years of Bitcoin: “There was no action to speak of and no news cycle. Bitcoin was a fringe phenomenon confined to a subculture of software engineering and not a financial phenomenon.”

In 2010, Bitcoin gained real-world value

In May 2010, Bitcoin gained real-world value for the first time. A Bitcoin holder from Florida named Laszlo Hanyecz posted a comment on a Bitcoin forum called bitcointalk.org, asking if anyone would be willing to order him two pizzas in exchange for 10,000 Bitcoins. Doing this established that Bitcoin had real-world value and once again established its worth.

Laszlo was able to get two pizzas from Papa John’s, worth about $41. This transaction set the value of Bitcoin at the time to $0.0041. If Laszlo was to purchase two pizzas for 10,000 BTC again in 2024, the same pizzas would be worth over $600 million. However, at the time, Laszlo thought the purchase was a great idea, he explained to the Sun “I wanted to do the pizza thing because, to me, it was free pizza. I mean, I coded this thing and mined Bitcoin, and I felt like I was winning the internet that day.”

Bitcoin reached a value of $1 in 2011

In February 2011, Bitcoin finally reached a value of $1 per Bitcoin, which was a huge milestone at the time. This achievement was a turning point for Bitcoin, with many recognizing it as a real digital currency from this point forward.

After Bitcoin reached a $1 value in 2011, things took off from there. Between February 2011 and June 2011, the price of Bitcoin rose by 30 times its previous value, reaching up to $30 per Bitcoin. However, this peak did not last very long, and the coin quickly dropped back to a value of approximately $5.

Rapid Ascent in 2013

In 2013 cryptocurrency exchanges, like Mt Gox, started to become more accessible, and as such, more investors started purchasing crypto. With an increase in Bitcoin adoption, the price rose quickly. Bitcoin started 2013 with a value of $13 and quickly reached $1,000 by November that same year, exciting investors and hobbyists alike. This surge in value gained attention from the media all around the world, which in turn enticed more investment into the coin.

Mt. Gox Collapse

Mt Gox, a well-known and commonly used cryptocurrency exchange at the time, collapsed in February 2014, shaking Bitcoin’s value when it closed. Mt. Gox was forced to close due to a hack that resulted in the loss of hundreds of millions of dollars worth of Bitcoin. This was cause for concern in the crypto community, with many investors backing out, selling coins, and becoming more cautious. Bitcoin’s value fell from around $1,000 to approximately $300.

After the Mt. Gox collapse, Bitcoin’s price fluctuated and slowly increased. It closed in 2016 with a value of around $1,000.

2017 Bull Run

In 2017, with increased media coverage and adoption, Bitcoin once again started to quickly rise in value. The coin’s value went from $1,000 at the beginning of the year to $19,000 by December that year.

During this time, many businesses started to adopt crypto as consumer demand increased. Consumers were able to purchase goods using crypto online, play games with crypto, gamble online at crypto casinos, and even book travel with crypto.

2018 bear market and the rise of 2020

After reaching a high of nearly $20,000, Bitcoin took a tumble in 2018 and 2019. 2018 closed with a value of $4,000. 2019 closed with a value of $7,000. During this time, many investors lost interest in the coin, considering it a fad that was past its time.

2020 was an interesting and volatile year for Bitcoin. At the start of 2020, the market dropped even further, with Bitcoin being affected as well. In early 2020, the coin was once again worth just $4,000. However, by May of the same year, Bitcoin’s value was back up to $10,000. Then, in the last quarter of the year, Bitcoin exceeded its all-time high, reaching a total value of $29,000 by the end of the year.

Value spike in 2021

By just the first week of 2021, Bitcoin was already worth a whopping $40,000. By February, it was worth $50,000 and by March it was worth $60,000.

The coin faltered in May, with prices dropping as low as $34,000, however quickly bounced back. By November 2021, Bitcoin was worth another record high of $69,000.

2022 saw Bitcoin fluctuate in price as it matched the market, with values as low as $20,000.

Bitcoin is currently worth $64,000

In 2024, Bitcoin’s value is hovering around $64,000. While this amount rises and falls, Bitcoin has come a long way since 2009 when it was first transacted on PayPal for $0.0009 or used to purchase pizza for a value of $0.0041.

Bitcoin will likely increase in value

Bitcoin recently underwent one of its halving events in April 2024. Each halving event cuts the reward for mining Bitcoin in half. Halving events are pre-set and are put in place to help the coin keep its value over time.

In the past, the coin has increased in value after halvings, and will likely do so again. Experts from Coinpedia believe that if the coin does not fall below $40,000, it may have a chance of exceeding $120,000 at some point in 2024. In addition, the experts believe that by 2030 the value of Bitcoin could exceed $300,000.

Conclusion

Since its launch in 2009, Bitcoin’s value has skyrocketed. Not only has Bitcoin gained millions in value, but it has also paved the way for other cryptocurrencies in the market. There are now over 29,000 different digital coins to choose from. However, Bitcoin still remains the most valuable and sought-after coin. From its humble beginnings in 2009 to its current astronomical value of around $64,000 for just 1 BTC, Bitcoin has changed how we think of and use currency.

Was this page helpful?

Our commitment to delivering trustworthy and engaging content is at the heart of what we do. Each fact on our site is contributed by real users like you, bringing a wealth of diverse insights and information. To ensure the highest standards of accuracy and reliability, our dedicated editors meticulously review each submission. This process guarantees that the facts we share are not only fascinating but also credible. Trust in our commitment to quality and authenticity as you explore and learn with us.