Bitcoin Price History: The Changing Bitcoin Cryptocurrency Prices Over the Years; Is It a Worthy Investment?
Investing can be in different forms, platforms, and even on different asset classes. Many investors are now being pulled to investing in cryptocurrencies, and among the best cryptocurrencies available are Bitcoins (BTC). Before you can invest in any cryptocurrency, it is always prudent to analyze its price history and trend. The history will make it easy for you to understand whether the cryptocurrency under study will be worthy in the future or the investment period.
In this article, we shall base our study on the history of Bitcoin and one of the best cryptocurrencies.
Bitcoin Price History
We can trace the history of bitcoins to 2011. This was when bitcoin as a cryptocurrency started gaining popularity among many investors. The bitcoin price history has been characterized by many factors: the daily volatility, numerous fraudsters and scams, the absence of well-established bitcoin price regulation, and many more factors that are plaguing the bitcoin ecosystem.
Even with such incidences, there are some times when the bitcoin prices have out-spaced their volatile swings and resulted in price bubbles that were massive.
Here is a brief history of bitcoins;
#2011- 2011 was the year when an unusual instance occurred. The bitcoin price that was in the previous year and few early months of 2011 trading at $1 rose up to $32. This was a translated gain of 3200% within three consecutive months. In November 2011, there was a sharp recession in the crypto market that led to the drop of the bitcoin price of $2. The following year, the price of the bitcoin improved up to the $4.80 mark in May 2012 and further improved to $13.20 in August 2012.
#2013- 2013 is another year that the bitcoin price made a remarkable improvement. The bitcoin price rose from $13.40 from the previous year to $220 in the month of April. After such a high increase, there was a sudden decrease in the bitcoin price and was being exchanged at the rate of $70 in mid-April 2013.
#2013B- it did not end in April 2013 as there was a major happening in the bitcoin price. This was in early October when the bitcoin was trading at $123.20. many investors in the bitcoin cryptocurrency were surprised in the month of December when the Bitcoin price spiked and were trading at $1,156.10. Three days later, the price of the bitcoin drastically fell down to $760. This marked a multilayer slump in the price of bitcoin that went as low as $315, ushering at the beginning of 2015.
#2017 – this is the year that the bitcoin price made drastic changes. At the beginning of 2017, the bitcoin price was trading at around $1,000. There was a brief decline of the bitcoin price from $1,000 to about $975.70; this was in March 2017.
In December the same year, the bitcoin price made a major move, and a bitcoin was trading at the highest ever recorded price of $20,089. This introduced bitcoin as a cryptocurrency into the mainstream spotlight. This is the time when the government and other economists noticed the worthiness of cryptocurrency and worked to develop another cryptocurrency to compete with the bitcoin in the market.
#2019- there was sideways movement on the bitcoin price showing the bitcoin trading at $10,000 in June 2019 before it fell to $7,112.73 in December 2019.
#2020- bitcoin burst into activity in 2020. The bitcoin price for the start of the year was $7,200. In November of the same year, there was accelerated bitcoin demand that saw the bitcoin price burst rising to $18,353. 2020 was affected by many strains following the effects of the pandemic, but Bitcoin survived.
#2021- after 2020, the bitcoin cryptocurrency still remained strong in the investment market. By March 2021, the bitcoin price was trading at $60,000, the highest bitcoin price ever recorded. There were continued institutional interests changing it from the interest of individuals. This propelled the bitcoin price upwardly, and the bitcoin that was just operating under $24,000 in December 2020 got an increase of about 224%.
In April 2021, the price of a bitcoin was at its peak, trading at $64,000. Because of summer, the price of the bitcoin fell by 50% and was just trading at $32,000.
Factors that Influence Bitcoin Trading and Prices
Like any other business or investment, bitcoin trading was influenced by many factors. During the early days when bitcoins were being introduced, there was thin liquidity, and few investors were investing in cryptocurrency.
Many investors were attracted to bitcoin trading because of the following factors;
1. The rise and fall of the cryptocurrency exchanges controlled the bitcoin stashes that contributed to the bitcoin price increase and attracted many investors.
2. Traction with mainstream online retailers
3. The ASIC Mining operations
4. The government regulations
5. Interests from institutional investors. This increased the demand for bitcoin and complicated the bitcoin mining process affecting the price of the bitcoin.
6. Economic instability.
FAQs Associated to Bitcoin Price History
How Much did a Bitcoin Cost as it Came Out?
Bitcoin came into use between 2009 and 2010. At this time, a single bitcoin was worth almost nothing. However, this has changed over some time now, and the price of a bitcoin is trading at high prices.
What Determines the Price of a Bitcoin?
The price of a bitcoin is pegged on numerous factors that include;
1. The Bitcoin demand and the supply of the demanded bitcoins
2. The cost the bitcoin miners incur during the mining process
3. Competition from other cryptocurrencies
4. The bitcoin selling regulations
5. The rewards that the bitcoin miners get after they verify the blockchain transactions.
Why is the Bitcoin Price Rising?
For the bitcoin price to rise, it depends on many events like the media hype, crossing an ATH, among many other factors.
Do Companies Accept Bitcoins?
Yes! Some major companies like Microsoft, PayPal, Overstock, and many more accept the use of Bitcoins.
Bitcoin is the most popular cryptocurrency in use today, with over $4 billion worth of transactions every day. It's easy to know why people are passionate about bitcoin, but getting into the history behind it can help you better understand how this revolutionary technology came to be and what makes it so special. If you're looking for a way to get started learning more about bitcoin or if you want some new insights on its history, check out our blog series "Bitcoin 101," where we'll walk through all facets of this exciting currency!