Bitcoin recently reached the remarkable milestone of being the first digital currency to surpass $100,000. Initially cast aside as a mere digital curiosity, it has become a mainstream asset class worthy of interest.
Although already a force to be reckoned with, experts believe Bitcoin still has plenty of room for growth in the coming years. While no one knows for sure, we could see its value reach into the millions down the road.
Still, others are turning to altcoins, wondering what the next 1000x crypto coin might be. It took Bitcoin 15 years to achieve this milestone, but newer currencies could witness a much faster journey now that Bitcoin has paved the way.
However, let’s go back 16 years, to what was to be the start of the cryptocurrency revolution.
Bitcoin’s Humble Beginnings
The concept of Bitcoin first appeared in a 2008 document written by an anonymous figure or group referred to as Satoshi Nakamoto. It describes a decentralized digital currency operating out on the blockchain that enables transparent, secure, and tamper-proof transactions without the need to rely on a financial institution or bank.
In early 2009, Nakamoto mined the first Bitcoin block, launching the crypto era as we know it. While most individuals didn’t see the need for such a currency, the coin did catch the eye of a select few who saw its potential. Early calculations for mining blocks were much easier at this time too, although Bitcoin had yet to carry any actual value.
The Road to Mainstream
As the first of its kind, no one knew where Bitcoin would go. With limited real-world application, the coin’s harshest critics saw cryptocurrency as nothing more than a novelty. Few transactions could take place given its narrow scope, minimizing the impact of a decentralized currency even more.
The lack of a regulatory framework for handling Bitcoin only added to the coin’s struggle. Rising and waning interest led to several early spikes and dips as investors tested its potential. Still, Bitcoin managed to gain traction. Its first big break came in 2011 when Bitcoin reached parity with the U.S. dollar, finally signalizing it was more than a fad.
Bitcoin emerged from a mere niche interest to more mainstream use. Platforms like Mt. Gox became the first cryptocurrency exchanges, allowing safe, efficient trade and a semblance of liquidity. This sense of stability allowed Bitcoin to reach $26 within the year and climb as high as $1,200 toward the end of 2013.
A Brush With Death
Unfortunately for Bitcoin, a series of adverse events caused a steep decline from this storied high. Crypto exchange Mt. Gox suffered a fatal security breach in the early months of 2014, leading to a loss of nearly 850,000 coins.
Also, Bitcoin had yet to break free from its volatile nature. With a price point primarily driven by speculation, negative news or rumors had the power to cause massive value shifts. The market’s pullback from such claims sent the coin’s price below $100, causing fears that the crypto era had reached a conclusion.
Recovery and Growing Attention
Despite such a significant loss in valuation, Bitcoin started to garner more attention from mainstream sources. Governments and regulators around the globe leaned more into cryptocurrency, realizing at last its potential as a viable currency for trade.
Altcoins began to make an appearance as well, adding additional fuel in the case for cryptocurrency as a whole. Ethereum’s introduction in 2015 served to expand the blockchain ecosystem and helped formulate some of the ambiguities surrounding the niche.
Many technical advancements were also at work during this time, helping to address issues with scalability and transaction speeds. It wasn’t long before Bitcoin started gaining traction again, sparking interest even beyond institutional investors.
Adoption Across Industries
Several companies chose at this point to add Bitcoin as a viable form of payment. Microsoft was among the first to allow Bitcoin to purchase games, apps, and other digital content, with platforms like Twitch to shortly follow.
This trend trickled into a number of other industries as well, from retail to food and beverage and luxury goods. It became possible to pick up a coffee from Starbucks or book a hotel on Expedia using nothing but Bitcoin.
Similarly, many online casinos chose to adopt Bitcoin and certain altcoins as the primary option for making bets. Doing so offers customers security, privacy, and faster transactions than ever before through the use of a crypto wallet.
The Next Rise
Positive changes and wide-scale acceptance proved fruitful for Bitcoin in 2017, causing its valuation to climb from $1,000 in January to over $20,000 by the end of the year. The introduction of Bitcoin futures by major exchanges the same year marked a significant turning point as well.
Another sell-off in the following year sent Bitcoin’s price back down to $3,000, but this low wouldn’t last long. The digital currency found purpose in cross-border transactions and offered stability to regions experiencing instability. Even in the United States, folks began to see Bitcoin as a hedge against inflation and devaluation of the dollar.
Success in 2024 and Global Recognition
Bitcoin entered 2024 at just over $40,000, but a series of spot ETF approvals would make the coin even more accessible than ever. Now with major players like Fidelity and BlackRock showing interest, confidence in Bitcoin surged higher than ever before.
Additionally, Bitcoin additions to corporate holdings and improvements in the mining process bolstered its global standing. The currency’s latest halving in April further increased interest and sent its price up further than ever before.
Most recently, Donald Trump’s election as a pro-crypto president could create a precedent for Bitcoin as commonplace with his announcement of several digital currency policies. The President-elect famously thanked the world on his Truth Social platform when Bitcoin crossed the $100,000 mark for the first time in early December.
Bitcoin’s rise clearly demonstrates how a revolutionary concept can forever change how we function as humans. Time will tell all, but it’s safe to say that digital currencies have cemented their place in the global economic landscape and as a means for trade for the foreseeable future.
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