Bitcoin is the first and most recognized cryptocurrency, designed as a decentralized digital system for conducting financial transactions without the need for intermediaries. Its widespread popularity stems from its transparency, security, and independence from banks or government control.
At the core of Bitcoin is blockchain technology — a distributed ledger that records all transactions. Each entry is secured by advanced cryptographic algorithms, making the system highly resistant to hacking and manipulation.
The story of Bitcoin began in 2008 with the publication of a “white paper” by an unknown individual or group using the pseudonym Satoshi Nakamoto. This document outlined the concept of Bitcoin and introduced the idea of a digital currency free from reliance on traditional banking systems.
In 2009, the first version of Bitcoin’s software was released, and the inaugural network block, known as the “genesis block”, was generated. The term for the cryptocurrency generating is mining. This marked the beginning of the cryptocurrency era.
It is worth noting that in the first years, Bitcoin did not attract much interest from ordinary users, much less investors. It was used mainly by enthusiasts and programmers.
A historic event that many cryptocurrency enthusiasts often recall today occurred in 2010, when programmer Laszlo Heinitz bought two pizzas for 10,000 bitcoins, which seems incredible today given their current value of $105,000 per unit.
Over the next decade, Bitcoin experienced periods of rapid growth and sudden declines.
Thus, in 2011, its value reached $1 for the first time, and in 2013 – $1,000. However, the rate was not stable, and soon after that a significant decline followed.
One of the most famous crises was the collapse of the Mt. Gox exchange in 2014, when hundreds of thousands of bitcoins were stolen in a hacker attack, leading to a sharp drop in trust and the value of the cryptocurrency.
Meanwhile, the digital coin did not disappear into oblivion. Three years later, the first cryptocurrency gained immense popularity among investors, and its value for the first time in history reached an incredible $20,000 per unit.
It is worth noting that this period became a turning point for the cryptocurrency market: numerous altcoins (alternative cryptocurrencies) began to appear, and institutional investors began to consider Bitcoin as an asset for diversifying their portfolios.
At the same time, in 2018, the digital coin industry experienced the so-called “crypto winter” – a massive price collapse caused by market overheating and legislative uncertainty. The price of Bitcoin then fell to $3,000.
However, those investors who did not lose faith in cryptocurrencies and continued to buy digital coins at a lower price received amazing profits. After all, in November 2021, Bitcoin set another historical record when its price reached 68 thousand dollars per unit.
It seems that the potential for growth has no limit. Last year, the cost of the main cryptocurrency reached 100,000 US dollars.
There are reasons for the growth in popularity of Bitcoin. Let us look at the list:
- Limited supply: Only 21 million coins will ever be issued, making Bitcoin resistant to inflation.
- Integration into the financial system: The first cryptocurrency is gradually being recognized as a legal means of payment in a number of countries.
- Technology Advances: Improvements in blockchain technology, including the Lightning Network, make transactions faster and cheaper, increasing Bitcoin’s appeal as a means of payment.
- Institutional Investments: Large companies and funds continue to invest in Bitcoin, which supports its price.
Meanwhile, many experts say that the main trigger for the growth of the world’s first cryptocurrency at the end of 2024 is the victory of Republican Donald Trump in the US presidential election. During his election campaign, he promised to make the United States the “crypto capital” of the world.
By the way, probably to confirm his commitment to supporting the cryptocurrency market, Donald Trump released his own altcoin. Moreover, the first lady, the wife of the US President Melania Trump, also has her own coin.
According to open sources, on the eve of Donald Trump’s inauguration as US President on January 20, his team launched two meme coins based on the Solana blockchain. The tokens, named Official Trump (TRUMP) and Official Melania Meme (MELANIA), became leaders in market capitalization among cryptocurrencies within just a day of their launch.
According to Coinmarketcap as of January 23, the combined capitalization of the TRUMP and MELANIA meme coins is about $7.5 billion, although their peak value occurred on the day of launch – January 20, reaching almost $17 billion.
According to the experts, cryptocurrency market in general, especially Bitcoin, is expecting active growth. There is a prediction that the bitcoin will grow to 200-250 thousand dollars. Whether their forecasts will come true will be shown in the not-so-distant future.