1 Elementary Bitcoin Price History Chart (Since 2009)

Bitcoin Price History Chart

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How Much was one Bitcoin Worth in 2009?

Bitcoin was not traded on any exchanges in 2009. Its very first recorded price was in 2010. Technically, Bitcoin was worth $0 in two thousand nine during its very very first year of existence!

How Much was one Bitcoin Worth in 2010?

Bitcoin’s price never topped $1 in 2010! Its highest price for the year was just $0.39!

What Determines Bitcoin’s Price?

Bitcoin’s price is measured against fiat currency, such as American Dollars (BTCUSD), Chinese Yuan (BTCCNY) or Euro (BTCEUR). Bitcoin therefore emerges superficially similar to any symbol traded on foreign exchange markets.

Unlike fiat currencies however, there is no official Bitcoin price; only various averages based on price feeds from global exchanges. Bitcoin Average and CoinDesk are two such indices reporting the average price. It’s normal for Bitcoin to trade on any single exchange at a price slightly different to the average.

But discrepancies aside, what factors determine Bitcoin’s price?

Supply and Request

The general reaction to “why this price?” is “supply and request.” Price discovery occurs at the meeting point inbetween request from buyers and supply of sellers. Adapting this model to Bitcoin, it’s clear that the majority of supply is managed by early adopters and miners.

Supply

Inspired by the rarity of gold, Bitcoin was designed to have a immovable supply of twenty one million coins, over half of which have already been produced.

Several early adopters were wise or fortunate enough to earn, buy or mine vast quantities of Bitcoin before it held significant value. The most famous of these is Bitcoin’s creator, Satoshi Nakomoto. Satoshi is thought to hold one million bitcoins or harshly Four.75% of the total supply (of twenty one million). If Satoshi were to dump these coins on the market, the ensuing supply glut would collapse the price. The same holds true for any major holder. However, any rational individual seeking to maximise their comebacks would distribute their sales over time, so as to minimize price influence.

Miners presently produce around Trio,600 bitcoins per day, some portion of which they sell to cover electrical play and other business expenses. The daily power cost of all mining is estimated around $500,000. Dividing that total by the current BTCUSD price provides an approximation of the minimum number of bitcoins which miners supply to markets daily.

Request

With the current mining prize of 12.Five BTC per block solution, Bitcoin supply is inflating at around 4% annually. This rate will drop sharply in 2020, when the next prize halving occurs. That Bitcoin’s price is rising despite such high inflation (and that it rose in the past when the prize was fifty BTC!) indicates utterly strong request. Every day, buyers absorb the thousands of coins suggested by miners and other sellers.

A common way to gauge request from fresh entrants to the market is to monitor Google trends data (from two thousand eleven to the present) for the search term “Bitcoin.” Such a reflection of public interest tends to correlate strongly with price. High levels of public interest may exaggerate price activity; media reports of rising Bitcoin prices draw in greedy, uninformed speculators, creating a feedback loop. This typically leads to a bubble shortly followed by a crash. Bitcoin has experienced at least two such cycles and will likely practice more in future.

Drivers of Interest

Beyond the specialists primarily drawn to Bitcoin as a solution to technical, economic and political problems, interest among the general public has historically been stimulated by banking blockades and fiat currency crises.

Banking Blockades

Most likely the very first such example was the late two thousand ten WikiLeaks banking blockade, whereby VISA, MasterCard, Western Union and PayPal ceased processing donations to WikiLeaks. Following a request from Satoshi, Julian Assange refrained from accepting Bitcoin until mid-way through 2011. Nevertheless, this event shone a light on Bitcoin’s unique value as censorship resistant electronic money.

The most latest such blockade occurred when MasterCard and VISA blacklisted Backpage.com , a Craigslist-style site which lists, inter alia, adult services. Adult service providers whose livelihood depends on such advertising have no way to pay for it besides Bitcoin.

On the subject of business which banks won’t (openly) touch, there’s no avoiding mention of darknet drug markets. While the most (in)famous venue, Silk Road, was taken down, the trade of contraband for bitcoins resumes unabated on the darknet. Albeit only 5% of British users have admitted to purchasing narcotics with Bitcoin, that figure is likely understated for reasons of legal risk. Ultimately, the media controversy over darknet markets has likely brought Bitcoin to the attention of many who otherwise wouldn’t have encountered it.

Fiat Currency Crises

A Bitcoin wallet can be a lot safer than a bank account. Cypriots learnt this the hard way when their savings were confiscated in early 2013. This event was reported as causing a price surge, as savers rethought the relative risks of banks versus Bitcoin.

The next domino to fall was Greece, where rigorous capital controls were imposed in 2015. Greeks were subjected to a daily withdrawal limit of €60. Bitcoin again demonstrated its value as money without central control.

Soon after the Greek crisis, China began to devalue the Yuan. As reported at the time, Chinese savers turned to Bitcoin to protect their accumulated wealth.

A current positive influencer of Bitcoin price, or at least perception, is the “>Argentinian situation. Argentina’s newly-elected President, Mauricio Macri, has pledged to end capital controls. This would eliminate the broad disparity inbetween the official and black-market peso/USD exchange rates. Argentinians who can purchase bitcoins using black-market dollars will likely avoid considerable financial agony.

Market Manipulation

No discussion of Bitcoin’s price would be accomplish without a mention of the role market manipulation plays in adding to price volatility. At that time, Bitcoin’s all-time high above $1000 was partly driven by an automated trading algorithms, or “bots,” running on the Mt. Gox exchange. All evidence suggests that these bots were operating fraudulently under the direction of exchange operator, Mark Karpeles, bidding up the price with phantom funds.

Mt. Gox was the major Bitcoin exchange at the time and the undisputed market leader. Nowadays there are many large exchanges, so a single exchange going bad would not have such an outsize effect on price.

Major Downside Risks

It bears repeating that Bitcoin is an experimental project and as such, a very risky asset. There are many negative influencers of price, chief among them being the legislative risk of a major government banning or rigorously regulating Bitcoin businesses. The risk of the Bitcoin network forking along different development paths is also something which could undermine the price. Eventually, the emergence of a credible competitor, perhaps with the backing of major (central) banks, could see Bitcoin lose market share in future.

Price Oddities

Sometimes an exchange’s price may be entirely different from the consensus price, as occurred for a sustained period on Mt. Gox prior to its failure and recently on the Winkelvoss’ Gemini exchange.

In mid-Novermber 2015, BTCUSD hit $2200 on Gemini while trading around $330 on other exchanges. The trades were later reversed. Such events occur periodically across exchanges, either due to human or software error.

Bitcoin is ultimately worth what people will buy and sell it for. This is often as much a matter of human psychology as economic calculation. Don’t permit your emotions to dictate your deeds in the market; this is best achieved by determining a strategy and sticking to it.

If your aim is to accumulate Bitcoin, a good method is to set aside a immovable, affordable sum every month to buy bitcoins, no matter the price. Over time, this strategy (known as Dollar-cost averaging), will permit you to accumulate bitcoins at a decent average price without the stress of attempting to predict the sometimes wild gyrations of Bitcoin’s price.

1 Ordinary Bitcoin Price History Chart (Since 2009)

Bitcoin Price History Chart

Loading chart. (uses javascript)

How Much was one Bitcoin Worth in 2009?

Bitcoin was not traded on any exchanges in 2009. Its very first recorded price was in 2010. Technically, Bitcoin was worth $0 in two thousand nine during its very very first year of existence!

How Much was one Bitcoin Worth in 2010?

Bitcoin’s price never topped $1 in 2010! Its highest price for the year was just $0.39!

What Determines Bitcoin’s Price?

Bitcoin’s price is measured against fiat currency, such as American Dollars (BTCUSD), Chinese Yuan (BTCCNY) or Euro (BTCEUR). Bitcoin therefore emerges superficially similar to any symbol traded on foreign exchange markets.

Unlike fiat currencies however, there is no official Bitcoin price; only various averages based on price feeds from global exchanges. Bitcoin Average and CoinDesk are two such indices reporting the average price. It’s normal for Bitcoin to trade on any single exchange at a price slightly different to the average.

But discrepancies aside, what factors determine Bitcoin’s price?

Supply and Request

The general reaction to “why this price?” is “supply and request.” Price discovery occurs at the meeting point inbetween request from buyers and supply of sellers. Adapting this model to Bitcoin, it’s clear that the majority of supply is managed by early adopters and miners.

Supply

Inspired by the rarity of gold, Bitcoin was designed to have a immobile supply of twenty one million coins, over half of which have already been produced.

Several early adopters were wise or fortunate enough to earn, buy or mine vast quantities of Bitcoin before it held significant value. The most famous of these is Bitcoin’s creator, Satoshi Nakomoto. Satoshi is thought to hold one million bitcoins or harshly Four.75% of the total supply (of twenty one million). If Satoshi were to dump these coins on the market, the ensuing supply glut would collapse the price. The same holds true for any major holder. However, any rational individual seeking to maximise their comebacks would distribute their sales over time, so as to minimize price influence.

Miners presently produce around Trio,600 bitcoins per day, some portion of which they sell to cover electric current and other business expenses. The daily power cost of all mining is estimated around $500,000. Dividing that total by the current BTCUSD price provides an approximation of the minimum number of bitcoins which miners supply to markets daily.

Request

With the current mining prize of 12.Five BTC per block solution, Bitcoin supply is inflating at around 4% annually. This rate will drop sharply in 2020, when the next prize halving occurs. That Bitcoin’s price is rising despite such high inflation (and that it rose in the past when the prize was fifty BTC!) indicates enormously strong request. Every day, buyers absorb the thousands of coins suggested by miners and other sellers.

A common way to gauge request from fresh entrants to the market is to monitor Google trends data (from two thousand eleven to the present) for the search term “Bitcoin.” Such a reflection of public interest tends to correlate strongly with price. High levels of public interest may exaggerate price act; media reports of rising Bitcoin prices draw in greedy, uninformed speculators, creating a feedback loop. This typically leads to a bubble shortly followed by a crash. Bitcoin has experienced at least two such cycles and will likely practice more in future.

Drivers of Interest

Beyond the specialists primarily drawn to Bitcoin as a solution to technical, economic and political problems, interest among the general public has historically been stimulated by banking blockades and fiat currency crises.

Banking Blockades

Very likely the very first such example was the late two thousand ten WikiLeaks banking blockade, whereby VISA, MasterCard, Western Union and PayPal ceased processing donations to WikiLeaks. Following a request from Satoshi, Julian Assange refrained from accepting Bitcoin until mid-way through 2011. Nevertheless, this event shone a light on Bitcoin’s unique value as censorship resistant electronic money.

The most latest such blockade occurred when MasterCard and VISA blacklisted Backpage.com , a Craigslist-style site which lists, inter alia, adult services. Adult service providers whose livelihood depends on such advertising have no way to pay for it besides Bitcoin.

On the subject of business which banks won’t (openly) touch, there’s no avoiding mention of darknet drug markets. While the most (in)famous venue, Silk Road, was taken down, the trade of contraband for bitcoins proceeds unabated on the darknet. Albeit only 5% of British users have admitted to purchasing narcotics with Bitcoin, that figure is likely understated for reasons of legal risk. Ultimately, the media controversy over darknet markets has likely brought Bitcoin to the attention of many who otherwise wouldn’t have encountered it.

Fiat Currency Crises

A Bitcoin wallet can be a lot safer than a bank account. Cypriots learnt this the hard way when their savings were confiscated in early 2013. This event was reported as causing a price surge, as savers rethought the relative risks of banks versus Bitcoin.

The next domino to fall was Greece, where stringent capital controls were imposed in 2015. Greeks were subjected to a daily withdrawal limit of €60. Bitcoin again demonstrated its value as money without central control.

Soon after the Greek crisis, China began to devalue the Yuan. As reported at the time, Chinese savers turned to Bitcoin to protect their accumulated wealth.

A current positive influencer of Bitcoin price, or at least perception, is the “>Argentinian situation. Argentina’s newly-elected President, Mauricio Macri, has pledged to end capital controls. This would eliminate the broad disparity inbetween the official and black-market peso/USD exchange rates. Argentinians who can purchase bitcoins using black-market dollars will likely avoid considerable financial agony.

Market Manipulation

No discussion of Bitcoin’s price would be finish without a mention of the role market manipulation plays in adding to price volatility. At that time, Bitcoin’s all-time high above $1000 was partly driven by an automated trading algorithms, or “bots,” running on the Mt. Gox exchange. All evidence suggests that these bots were operating fraudulently under the direction of exchange operator, Mark Karpeles, bidding up the price with phantom funds.

Mt. Gox was the major Bitcoin exchange at the time and the undisputed market leader. Nowadays there are many large exchanges, so a single exchange going bad would not have such an outsize effect on price.

Major Downside Risks

It bears repeating that Bitcoin is an experimental project and as such, a very risky asset. There are many negative influencers of price, chief among them being the legislative risk of a major government banning or stringently regulating Bitcoin businesses. The risk of the Bitcoin network forking along different development paths is also something which could undermine the price. Eventually, the emergence of a credible competitor, perhaps with the backing of major (central) banks, could see Bitcoin lose market share in future.

Price Oddities

Sometimes an exchange’s price may be entirely different from the consensus price, as occurred for a sustained period on Mt. Gox prior to its failure and recently on the Winkelvoss’ Gemini exchange.

In mid-Novermber 2015, BTCUSD hit $2200 on Gemini while trading around $330 on other exchanges. The trades were later reversed. Such events occur sometimes across exchanges, either due to human or software error.

Bitcoin is ultimately worth what people will buy and sell it for. This is often as much a matter of human psychology as economic calculation. Don’t permit your emotions to dictate your deeds in the market; this is best achieved by determining a strategy and sticking to it.

If your aim is to accumulate Bitcoin, a good method is to set aside a immobilized, affordable sum every month to buy bitcoins, no matter the price. Over time, this strategy (known as Dollar-cost averaging), will permit you to accumulate bitcoins at a decent average price without the stress of attempting to predict the sometimes wild gyrations of Bitcoin’s price.

1 Ordinary Bitcoin Price History Chart (Since 2009)

Bitcoin Price History Chart

Loading chart. (uses javascript)

How Much was one Bitcoin Worth in 2009?

Bitcoin was not traded on any exchanges in 2009. Its very first recorded price was in 2010. Technically, Bitcoin was worth $0 in two thousand nine during its very very first year of existence!

How Much was one Bitcoin Worth in 2010?

Bitcoin’s price never topped $1 in 2010! Its highest price for the year was just $0.39!

What Determines Bitcoin’s Price?

Bitcoin’s price is measured against fiat currency, such as American Dollars (BTCUSD), Chinese Yuan (BTCCNY) or Euro (BTCEUR). Bitcoin therefore shows up superficially similar to any symbol traded on foreign exchange markets.

Unlike fiat currencies however, there is no official Bitcoin price; only various averages based on price feeds from global exchanges. Bitcoin Average and CoinDesk are two such indices reporting the average price. It’s normal for Bitcoin to trade on any single exchange at a price slightly different to the average.

But discrepancies aside, what factors determine Bitcoin’s price?

Supply and Request

The general response to “why this price?” is “supply and request.” Price discovery occurs at the meeting point inbetween request from buyers and supply of sellers. Adapting this model to Bitcoin, it’s clear that the majority of supply is managed by early adopters and miners.

Supply

Inspired by the rarity of gold, Bitcoin was designed to have a stationary supply of twenty one million coins, over half of which have already been produced.

Several early adopters were wise or fortunate enough to earn, buy or mine vast quantities of Bitcoin before it held significant value. The most famous of these is Bitcoin’s creator, Satoshi Nakomoto. Satoshi is thought to hold one million bitcoins or harshly Four.75% of the total supply (of twenty one million). If Satoshi were to dump these coins on the market, the ensuing supply glut would collapse the price. The same holds true for any major holder. However, any rational individual seeking to maximise their comes back would distribute their sales over time, so as to minimize price influence.

Miners presently produce around Three,600 bitcoins per day, some portion of which they sell to cover tens unit and other business expenses. The daily power cost of all mining is estimated around $500,000. Dividing that total by the current BTCUSD price provides an approximation of the minimum number of bitcoins which miners supply to markets daily.

Request

With the current mining prize of 12.Five BTC per block solution, Bitcoin supply is inflating at around 4% annually. This rate will drop sharply in 2020, when the next prize halving occurs. That Bitcoin’s price is rising despite such high inflation (and that it rose in the past when the prize was fifty BTC!) indicates utterly strong request. Every day, buyers absorb the thousands of coins suggested by miners and other sellers.

A common way to gauge request from fresh entrants to the market is to monitor Google trends data (from two thousand eleven to the present) for the search term “Bitcoin.” Such a reflection of public interest tends to correlate strongly with price. High levels of public interest may exaggerate price activity; media reports of rising Bitcoin prices draw in greedy, uninformed speculators, creating a feedback loop. This typically leads to a bubble shortly followed by a crash. Bitcoin has experienced at least two such cycles and will likely practice more in future.

Drivers of Interest

Beyond the specialists primarily drawn to Bitcoin as a solution to technical, economic and political problems, interest among the general public has historically been stimulated by banking blockades and fiat currency crises.

Banking Blockades

Most likely the very first such example was the late two thousand ten WikiLeaks banking blockade, whereby VISA, MasterCard, Western Union and PayPal ceased processing donations to WikiLeaks. Following a request from Satoshi, Julian Assange refrained from accepting Bitcoin until mid-way through 2011. Nevertheless, this event shone a light on Bitcoin’s unique value as censorship resistant electronic money.

The most latest such blockade occurred when MasterCard and VISA blacklisted Backpage.com , a Craigslist-style site which lists, inter alia, adult services. Adult service providers whose livelihood depends on such advertising have no way to pay for it besides Bitcoin.

On the subject of business which banks won’t (openly) touch, there’s no avoiding mention of darknet drug markets. While the most (in)famous venue, Silk Road, was taken down, the trade of contraband for bitcoins proceeds unabated on the darknet. Albeit only 5% of British users have admitted to purchasing narcotics with Bitcoin, that figure is likely understated for reasons of legal risk. Eventually, the media controversy over darknet markets has likely brought Bitcoin to the attention of many who otherwise wouldn’t have encountered it.

Fiat Currency Crises

A Bitcoin wallet can be a lot safer than a bank account. Cypriots learnt this the hard way when their savings were confiscated in early 2013. This event was reported as causing a price surge, as savers rethought the relative risks of banks versus Bitcoin.

The next domino to fall was Greece, where stringent capital controls were imposed in 2015. Greeks were subjected to a daily withdrawal limit of €60. Bitcoin again demonstrated its value as money without central control.

Soon after the Greek crisis, China began to devalue the Yuan. As reported at the time, Chinese savers turned to Bitcoin to protect their accumulated wealth.

A current positive influencer of Bitcoin price, or at least perception, is the “>Argentinian situation. Argentina’s newly-elected President, Mauricio Macri, has pledged to end capital controls. This would eliminate the broad disparity inbetween the official and black-market peso/USD exchange rates. Argentinians who can purchase bitcoins using black-market dollars will likely avoid considerable financial agony.

Market Manipulation

No discussion of Bitcoin’s price would be finish without a mention of the role market manipulation plays in adding to price volatility. At that time, Bitcoin’s all-time high above $1000 was partly driven by an automated trading algorithms, or “bots,” running on the Mt. Gox exchange. All evidence suggests that these bots were operating fraudulently under the direction of exchange operator, Mark Karpeles, bidding up the price with phantom funds.

Mt. Gox was the major Bitcoin exchange at the time and the undisputed market leader. Nowadays there are many large exchanges, so a single exchange going bad would not have such an outsize effect on price.

Major Downside Risks

It bears repeating that Bitcoin is an experimental project and as such, a very risky asset. There are many negative influencers of price, chief among them being the legislative risk of a major government banning or stringently regulating Bitcoin businesses. The risk of the Bitcoin network forking along different development paths is also something which could undermine the price. Ultimately, the emergence of a credible competitor, perhaps with the backing of major (central) banks, could see Bitcoin lose market share in future.

Price Oddities

Sometimes an exchange’s price may be entirely different from the consensus price, as occurred for a sustained period on Mt. Gox prior to its failure and recently on the Winkelvoss’ Gemini exchange.

In mid-Novermber 2015, BTCUSD hit $2200 on Gemini while trading around $330 on other exchanges. The trades were later reversed. Such events occur from time to time across exchanges, either due to human or software error.

Bitcoin is ultimately worth what people will buy and sell it for. This is often as much a matter of human psychology as economic calculation. Don’t permit your emotions to dictate your deeds in the market; this is best achieved by determining a strategy and sticking to it.

If your aim is to accumulate Bitcoin, a good method is to set aside a immovable, affordable sum every month to buy bitcoins, no matter the price. Over time, this strategy (known as Dollar-cost averaging), will permit you to accumulate bitcoins at a decent average price without the stress of attempting to predict the sometimes wild gyrations of Bitcoin’s price.

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