Bitcoin has seen many ups and downs ever since its inception in 2010. When it was launched, the price of one Bitcoin was $0.003. After a decade, the price of one Bitcoin has reached $56,483.40.
This cryptocurrency has surpassed all the predictions and expectations in the market. The price of Bitcoin has surged like waves over a period of time.
People have started adopting Bitcoin as a mode of payment and form of currency. Nowadays, you can easily make payment via Bitcoin while making online transactions as well as transferring money.
However, the journey has not always been easier. This currency has to face various challenges. So today, we are going to cover the entire timeline and development stages for Bitcoin.
What is Bitcoin?
It is one of the most popular cryptocurrencies in the market. There is no physical existence of this currency. It is digital in nature and is stored in digital wallets.
This decentralized digital currency is mostly used as a mode of payment. Apart from using it as a currency, you can invest in it as well. It was launched in the year 2008 and is one of the oldest cryptocurrency in the market.
The best thing about this digital currency is that there are no intermediaries in it. It works on the blockchain system. There is no central bank or any other financial instructions governing it.
Origin of Bitcoin:
This currency was invented on 31st October 2008. A person or a group of people under the pseudonym Satoshi Nakamoto were behind the idea of this coin.
They posted the first Bitcoin Whitepaper on cryptography. It was titled “Bitcoin P2P e-cash paper”. The foundation of Bitcoin was laid out in the paper.
After that, the first block of Bitcoin was mined. It took place on 3rd January 2009. It was known as “genesis block”. The first Bitcoin transaction took place a few days after.
Bitcoin Adoption Timeline:
Now that you know about Bitcoin and its origin, it’s time to learn about the development timeline. We will show you how Bitcoin gained traction over the period of time.
• 1982: E-Cash Idea (DigiCash)
Even though Bitcoin was launched in 2008, the origins lead back to the 1980s. The concept of blockchain was first laid by David Chaum. He proposed the idea of e-cash due to privacy issues. He published a paper in which anybody could keep the payment information secret from other third parties. His idea was used to launch DigiCash. It was an online currency. However, this concept became a huge failure, and nobody was ready to invest money in it.
• 1997: Hashcash
After the Chaum, many other people started innovation with the cryptocurrency concept. One such person was Adam Black. He invested in Hashcash in 1997. It was proof of work. The concept was pretty similar to Bitcoin.
• 1998: B-Money and Bit Gold
In this year, two new concepts of cryptocurrency emerged. Wei Dai came up with b-money. It was quite similar to Bitcoin. After that, Nick Szabo came up with Bit Gold. It was another cryptocurrency similar to Bitcoin.
• 2008: Origin of Bitcoin
While many people failed to create a stable cryptocurrency in the past, Satoshi Nakamoto was successful. He initiated the idea of Bitcoin this year. In most of August, the domain name of Bitcoin was registered. After two years, they published the Whitepaper for the same. The identity of Satoshi Nakamoto is hidden to date.
• 2009: Genesis Block
The idea behind Bitcoin became concrete in the year 2009 when the first block of the coin was mined. It was known as the genesis block. This year, the first transaction with the coin took place. Satoshi transferred 10 BTC to Hal Finney. Later in the year, the exchange rate for BTC was established in the market. At the time $1 = 1,309.03 BTC. In the same year, the second software for the coin was released.
• 2010: Bitcoin Commercial Transaction
This was the biggest development phase in Bitcoin adoption. During this year, the first Bitcoin commercial transaction took place. In May 2010, Laszlo Hanyecz bought two pizzas using BTC. He sent 10,000 BTC to get the pizza. The pizza was worth $25. In the same year, Bitcoin exchanges were launched. In the month of July, Bitcoin Market was launched. After that, in the month of July, Mt. Gox was launched. This year was very important for Bitcoin as the market cap surpassed $1 million.
• 2011: Bitcoin = $1
After 2010, the value of BTC started increasing. It surpassed the value of 1 cent, and soon 1 BTC became equal to $1. The coin gained negative as well as positive publicity because of which the value of 1 BTC = $30. However, the value soon came down to $10. This year, there was a major security breach at Mt. Gox. Bitcoin laid the platform for various altcoins as well.
• 2013: Bitcoin = $1,000
In this year, the value of Bitcoin increased to $1,000. It was the first-ever digital currency to cross $100 and then $1,000. Bitcoin exchanges and wallets became quite popular all over the world.
• 2014: Mt. Gox Bankruptcy
This was a bad year for Bitcoin. The value went down below $1,000. Due to security issues, Mt. Gox became bankrupt, which affected Bitcoin adoption greatly.
• 2017: Bitcoin Strikes Back
This year proved to be quite lucky for Bitcoin. The value of one coin went up by $3000. After a few months, changes were made in the network because of which the value further increased to $6,000 then $10,000. In the month of December, it reached $19,783.
• 2018: Value Decline
In this year, Bitcoin saw a decline of 67%. The value went down to $6,542.78.
• 2020: Bitcoin Halving
In 2019, the value of Bitcoin remained low. However, Bitcoin halving took place on 11th May 2020. So by the end of the year, Bitcoin skyrocketed.
• 2021: Acceptance Stage of Bitcoin Adoption
After Bitcoin halving, the coin gained traction in the market. More and more companies started adoption the coin for commercial transactions. The value surged to $50,000 and $60,000. Currently, Bitcoin is dominating the crypto market. Billionaires and top companies are showing interest in BTC. Companies like Tesla, JP Morgan and many other banks are ready to accept BTC.
These are the different phases of Bitcoin adoption in the world market. The timeline clearly shows how the challenges before the coin and how slowly and steadily, businesses started adopting it.