The Biggest Bitcoin Falls in 10 Years Comments Off on The Biggest Bitcoin Falls in 10 Years

This year Bitcoin celebrated its first anniversary, the first cryptocurrency turned 10 years old. Bitcoin survived many rapid ups and quite a few drastic falls during its not very long history. In this article we will talk about the most important events in the industry that have occurred over the past decade. So let’s get started.

In the fall of 2008, the world learned about such a concept as Bitcoin for the first time, when its creator, the mysterious Satoshi Nakamoto, published his work. He described the basic principles of the new payment system, in which there is no central governing body or any intermediaries. But it is worth noting that BTC could not be bought or even mined in 2008, since the Bitcoin network started to work on January 3, 2009. The zero block was mined that day. After a few days, on January 12, 2009, the first transaction of coins from one wallet to another happened.

The first official Bitcoin exchange rate was set on October 5, 2009, it was possible to buy the coin at the New Liberty Standart exchange, where $1 = 1309.03 BTC. From this day the story of one of the most volatile and certainly the fastest growing assets in the world begins. In the first couple of years, there was no specific Bitcoin rate for fiat currencies. That is why, the first cryptocurrency`s rate started to be tracked since 2010.

Before turning to the review of the most important and serious events that happened with Bitcoin throughout the time of its existence, let`s recall a significant date, namely May 22, 2010. This day is significant due to the historical purchase of two pizzas at a price of 10 thousand BTC. This case is notable for two reasons:

  • firstly, in terms of today’s rate (at the time of writing this article it is $3500 per one coin), these pizzas would cost about $35 million, which makes them the most expensive dish in the history of mankind;
  • secondly, it was the first case of buying goods for cryptocurrency.

Due to this Italian cuisine`s lover, users around the world have become more interested in Bitcoin. In the same 2010, the coin rate significantly increased: first to 8 cents, and then to $0.5. Then there happened the first major coin rate fall, in just a few days the price of Bitcoin fell by 50%.

After that, the rate started to grow and at the beginning of 2011 one coin equated to 1 dollar. The first half of this year was very successful for the cryptocurrency industry, as of June 2011, the price of 1 BTC rose to a record $32. After that, the first scandal in the cryptocurrency industry happened, namely the hacking of the Mt.Gox exchange. As a result of this event, the BTC rate dropped to $3. That was the largest fall of the coin`s price in history.

In 2012, the first cryptocurrency bank Bitcoin Central opened up, it received an official license. This event had a positive impact on the rate of the coin. It should be noted, that that year the price of the first cryptocurrency was not volatile.

By this time, Bitcoin Central bank had already established its reliability, and with its help a growing number of investors began to take interest in cryptocurrency. Due to this, the Bitcoin rate began to grow rapidly and reached $266 in a short period of time. At this point, another negative event occurred in the cryptocurrency world – the arrest of the Silk Road Company. The CEO of the company got a verdict of 6 years in prison for property theft. Against this background, the Bitcoin rate decreased by half. But in 2013 investors were too determined; therefore the BTC rate continued its growth. By the end of the year, it overcame the psychological mark of $1000.

Source: https://coinmarketcap.com/

Correction in 2014-2016

After such a rapid growth, a rather deep and protracted correction immediately followed and lasted for more than two years. Only in early 2017, the price of Bitcoin was once again able to overcome the $1000 price point.

Source: https://coinmarketcap.com/

This time was characterized by a struggle between hackers and software developers. Successes and failures of both parties were reflected on the Bitcoin price chart. At that time, the industry began to actively develop the infrastructure, creating new decentralized applications. Since the market did not make any special movements, only traders could make money on the cryptocurrency market at that period of time. At that time the rate of BTC fell to $190, and correction lasted for more than two years.

Bitcoin “Fever” of 2017

This year was the most successful one for the cryptocurrency industry in history. It was in 2017 when the masses learned about Bitcoin and digital coins. Throughout 2017, the price of Bitcoin and other coins grew steadily. By summer 1 BTC cost $3000, by fall it cost $6000, at the end of November the price was $10000, and after that, on December 17, 2017, a historical maximum of almost $20000 was reached. At the beginning of the January of 2018, Bitcoin tried to start an upward movement again, but it could only grow to $17000.

After this, the rate began to fall down. By the February of 2018, the price of the first cryptocurrency dropped to $6000. Then rate started to grow, but unfortunately, the upward trend did not last long. Throughout 2018, the Bitcoin rate fluctuated up and down. The price of BTC did not fall below $6000 until the November of 2018. And then there happened the most rapid fall in the history of Bitcoin exchange rate over the past 7 years – in just a couple of weeks the coin lost half of its value (the price dropped to $3000).

Source: https://coinmarketcap.com/

At the time of writing this article, the Bitcoin rate is $3880 per coin. This correction has been going on for almost a year and no one can say for sure when it will end. As practice shows, Bitcoin can rapidly fall and stay unchangeable for a very long time, but its price recovers and even overcomes new psychological marks sooner or later.

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