Bitcoin is a decentralized digital currency that was created in 2009 by an unknown individual or group of individuals using the pseudonym Satoshi Nakamoto. Bitcoin is a decentralized digital currency that was created in 2009 by an unknown individual or group of individuals using the pseudonym Satoshi Nakamoto.
The concept of Bitcoin was first described in a white paper published be Nakamoto in 2008, which outlined the details of a peer-to-peer electronic cash system that would allow for the transfer of value without the need for intermediaries such as banks.
The first block of the Bitcoin blockchain, known as the Genesis Block, was mined on January 3, 2009.
In the following years, Bitcoin gained increasing recognition and adoption as a means of exchange and a store of value.
In 2010, the first real-world transaction using Bitcoin took place when a programmer named Laszlo Hanyecz paid 10,000 Bitcoinâs (worth approximately $41 at the time) for two pizzas.
In the years that followed, Bitcoinâs price and adoption continued to grow, with the first Bitcoin exchange and the first Bitcoin ATM being launched in 2011.
Since then Bitcoin has had its all-time-highs and crashing moments as a result of its price volatility but this notwithstanding, it has had a continuous upward movement in price since inception in 2009 that it was launched at the price of $0.01.
Itâs worth noting that the price of Bitcoin can be affected by many factors, including changes in market demand, regulatory developments and technological innovations.
Bitcoinâs price movements since 2009 till date (2022)
Since the inception of Bitcoin in 2009, it has been known for its price fluctuation due to its volatile nature, this has birthed the bear and bull market seasons over time, though in all, Bitcoin has had a continuous surge in price movement till date.
Bitcoin was launched in January, 2009 for a few cents at the price of $0.01 and was as well given as rewards for free to its miners. As the network and the adoption of Bitoin grew, the price began to rise.
Bitcoin price movement from 2009 to 2015
Bitcoin rose from its price launch of $0.01 in January, 2009 to $0.06 from January to October, 2010 and to $0.29 in December 2010. Then in March, 2011, it hit $1.35 with a peak of $17.96 in June of 2011 and it ended 2011 by bottoming up to $3.91 in December, 2011.
Also in 2012, its price remained down while rounding the year at a price of $13.4 in December, 2012. Then in 2013, it had a new high of $144 in April, 2013, and then it had a major leap in November, 2013 to $1129 but later receded in price to $760 in December of same year.
All through 2014, the market was down and it ended at $226 in December of same year. This continued in the year 2015 with a price closure of $425.
Bitcoin price movement of 2016 till date (2022)Bitcoin price movement of 2016 till date (2022)
In the first and second quarter of 2016, the consolidation in the Bitcoin down time continued though it had a minor lift in price in the third quarter and closed at $746. But then it rallied with an uptrend in 2007 with a major upward movement in price to $7000 in November, 2017 and closing up the year at a peak of $19,345 in December, 2017.
Then came a major bear market in 2018 to 2019 crashing the price to the lowest of $3,809 in December, 2018 with a downtrend consolidation that entered 2019, though it had a minor lift to over $10,000 in June 2019 though it fell to $6,635 in mid-December, 2019.
Year 2020 was grazed with the beginning of a bull market with its highest price at $28,837 in December, this was propelled by the Covid 19 pandemic economic shutdown and subsequent government policies fed investors' fears about the global economy and accelerated Bitcoin's rise.
Then 2021 was ushered into a major uptrend with a price opening at $34,199 in January, with its topmost skyrocketing price peak in history/all-time high of $68,789 in November 10, 2021 as stated by Coinbase.
But it later closed the year with a downward trend ushering in another major bear market that has lasted till date (2022), as at January 2022, the price was $34,983 but the downtrend continued and as at this December 2022, the price is closing at $16,816.
Bitcoin have had its major bear seasons in 2013, 2014, 2018 and 2020 while its major bull seasons have been 2013, 2017 and 2021.
The price is usually affected by factors such as changes in the market, regulatory developments, technological innovations and the market sentiment per time.
Bitcoin's price fluctuations primarily stem from investors and traders betting on an ever-increasing price in anticipation of riches.
However, Bitcoin's price story has again changed. In January 2022, Bitcoin began losing steam
How profitable is bitcoin investment compared to the investment class
Despite the volatility that trails bitcoin, it has remained a more profitable venture compared to other asset class.
Smart Valour opined that Bitcoin has remained the best performing asset class of the decade returning ten times more than the NASDAQ 100.
This report further stated that according to data from Ychart, which examined the 17 top-performing assets between 2011 and 2021 found that since 2011, Bitcoinâs cumulative gains have exceeded 20,000,000%.
This far outpaced the gains of the US Large Caps and NASDAQ 100, which recorded returns of $3,282 and 541%, respectively.
Bitcoin returned 230% on an annualized scale in that period. This is 10x the amount of the NASDAQ 100, which was the second-best performing asset class of the last decade.
US Large Caps recorded an annualized return of 14%, and gold recorded an annualized return of 1.5%.
Even though Bitcoin is very volatile, thereâs no denying that itâs an asset worth holding onto for many investors.
Never the less, Bitcoin investment is not regulated by any government or institution and this means that there is no regulatory protection for investors in the event that something goes wrong at the moment.
Hence the decision to invest in Bitcoin or any cryptocurrency should come with a thorough understanding of the risks and potential rewards associated with it,
one should seek an indepth knowledge of Crypto space before investing in it to avoid losses.