Bitcoin is a decenteralized digital currency that you can buy,sell and exchange directly,without an intermediary like a bank
Bitcoin is a cryptocurrency, one of the thousands of new digital or virtual currencies available globally. It can be used as a store of value, a way to exchange value, or as a speculative investment. Its value changes daily, sometimes hundreds of dollars or more, which changes how much global capital is invested in it.
Bitcoin (BTC) is a cryptocurrency (a virtual currency) designed to act as money and a form of payment outside the control of any one person, group, or entity. This removes the need for trusted third-party involvement (e.g., a mint or bank) in financial transactions.
Bitcoin was introduced to the public in 2008 by an anonymous developer or group of developers using the name Satoshi Nakamoto. It has since become the most well-known and largest cryptocurrency in the world. Its popularity has inspired the development of many other cryptocurrencies.
Read on to learn more about the cryptocurrency that started it all—the history behind it, how to buy it, mine it, and what it can be used for.
Key Takeaways
Bitcoin is the end product of the work of many people, but it is generally accepted that Satoshi Nakamoto created it and introduced it in 2008 with 119.81M TOTAL SUPPLY
Bitcoin is the public blockchain used to create and manage the cryptocurrency of the same name.
Bitcoin mining is the race between miners to hash block information, find the solution to a hashing problem, and add a block to the blockchain. The winning miner is rewarded with bitcoins.
Bitcoin can be used by speculators, investors for investing purposes, and consumers for purchases or value exchange.
There are many risks involved with investing in and using bitcoins, including volatility, fraud, and theft.
Here’s a quick rundown of Bitcoin’s price history:
2009–2015
Bitcoin had a price of zero when it was introduced in 2009. Its price jumped from its long-held level of $0.10 to $0.20 on Oct. 26, 2010. Before the year had closed out, it had reached $0.30. In 2011, it started growing past $1, reaching a peak of $29.60 on June 8, 2011
2016–2020
Prices slowly climbed through 2016 to over $900 by the end of the year. In 2017, Bitcoin’s price hovered around $1,000 until it broke $2,000 in mid-May and then skyrocketed to close at $19,188 on Dec. 16.
Mainstream investors, governments, economists, and scientists took notice, and other entities began developing cryptocurrencies to compete with Bitcoin.
Bitcoin’s price moved sideways in 2018 and 2019, with small bursts of activity. For example, there was a resurgence in price and trading volume in June 2019, with the price surpassing $10,000. However, it fell to a closing price of $6,612 by mid-December.
At the close on Nov. 23, Bitcoin was trading for $18,383. Bitcoin’s price closed at $28,993 on Dec. 31, 2020, increasing 416% from the start of that year
2021–2023
Bitcoin took less than a month in 2021 to smash its 2020 price record, surpassing $40,000 by Jan. 7, 2021. By mid-April, Bitcoin prices reached new all-time highs of over $60,000 as Coinbase, a cryptocurrency exchange, went public. Institutional interest propelled its price further upward, and Bitcoin reached a peak of $64,895 on April 14, 2021.
By the summer of 2021, however, prices were down by 50%, closing at $30,829 on July 19. September saw another bull run, with BTC scraping $52,956, but a large drawdown took it to a closing price of $40,597 about two weeks later.
On Nov. 10, 2021, Bitcoin again reached an all-time high of $69,000 before closing at $64,921. In mid-December 2021, Bitcoin fell to a close of $46,211. The price started fluctuating more as uncertainty about inflation and the emergence of a new variant of COVID-19, Omicron, continued to spook investors.
Between January and May 2022, Bitcoin’s price continued to gradually decline, with closing prices only reaching $47,459 by the end of March before falling further to $29,000 on May 11. This was the first time since July 2021 that Bitcoin closed under $30,000. On June 13, crypto prices plunged, dropping below $23,000 for the first time since Dec. 2020. By the end of 2022, it was under $20,000.
Fortunes changed in 2023 as Bitcoin opened the year at a price of $16,530. It rose consistently throughout 2023, ending the year at $42,258
Bitcoin Prices 2024
In January 2024, the long fight for Bitcoin Spot ETFs came to a close after the SEC was forced by courts to review its denial of certain Bitcoin-related investment products. Some brokerages swarmed the market and increased their holdings, while others, like Grayscale’s Bitcoin Trust (GBTC), experienced significant outflows at the onset.
The outflows from certain funds slowed going into March, somewhat settling the market. The market-wide rebalancing was likely because there were suddenly more options for investors to choose from.
Early 2024
Bitcoin’s price climbed quickly after the fund approvals—in late February and early March, it once again breached $60,000, setting a high of $69,210 on March 6 and another of $70,184 on March 8. On March 1, Bitcoin continued setting records, reaching $73,835 on Coinbase.
Mid 2024
On April 19, 2024, Bitcoin had its fourth and latest halving event, reducing the reward for a mined block from 6.25 BTC to 3.25 BTC. The cryptocurrency recorded a modest gain that day and closed at $63,821.
On September 18, 2024, the U.S. Federal Reserve announced its first rate cut since the start of the COVID-19 pandemic, lowering the target federal funds rate to 4.75%-5%. Predictably, the market had a positive reaction, with gains across major indices. Bitcoin also continued its trend of “mimicking” the stock market and, on Sep. 19, 2024, traded around $64,000, sharply higher than its price of about $60,000 just two days prior.
Late 2024
On Nov. 7, 2024, Bitcoin’s price hit another all-time high of $76,999 on Coinbase following Donald Trump’s re-election as President before closing at $75,820, a 9% increase from the closing price on Nov. 5. On Nov. 10, 2024, Bitcoin reached another milestone, crossing the $80,000 threshold on Crypto.com ($80,152.38). On Nov. 11, it continued pushing boundaries, and on the morning of Nov. 13, it made it past $91,000 ($91,203.83) on Coinbase. Market exuberance was unfaltering in the following weeks, pushing Bitcoin to unbelievable highs of $99,637 on Oanda, $99,543 on Coinbase, and $99,555 on Gemini on Nov. 22, 2024, by mid-day.
At about 3 p.m. ET, Bitcoin broke through $100,000 on a European exchange, Whitebit, and closed at $99,513.13.
These significant increases are due to investor exuberance following Trump’s many promises on the campaign trail, such as replacing Securities and Exchange Commission Chairman Gary Gensler, making America “the crypto capital of the world,” and creating a “Strategic Bitcoin Reserve,” among others.
Today January 18/2025 – 12:30
1 Bitcoin(BTC) = 103,455.89
Today January 18/2026 – 12:30
1 Bitcoin(BTC) = 200,000(an estimate)