Bitcoin is the first and most widely used cryptocurrency in the world. It has a total supply of 21 million, of which roughly 90% has already been mined. Bitcoin has transformed the whole crypto business in its 12 years of existence.
Bitcoin’s supply is limited, making the world’s oldest cryptocurrency more valuable as more individuals participate.
Bitcoin is available on all crypto exchange platforms, and it was the most traded cryptocurrency on CoinSwitch Kuber, a major cryptocurrency exchange in India.
Bitcoin’s Evolution: From Pizza to El Salvador
Satoshi Nakamoto, a person who goes by the pseudonym Satoshi, brought the concept of Bitcoin to the public in 2008. The blockchain was established in January 2009, but it took more than a year for the first economic transaction to take place. For 10,000 bitcoins, a Florida guy arranged the delivery of two $25 Papa John’s pizzas. While this may appear to be a tragic story for the Florida man, it is important to note that this transaction established bitcoin’s first real-world price or value. A pizza today costs 0.00027 Bitcoin, and 10,000 Bitcoins would buy 37 million pizzas.
In 2022, Bitcoin is the most valuable cryptocurrency, with a crazy market price drawing investors from all over the world. Tesla CEO Elon Musk announced a $1.5 billion investment in Bitcoin in early 2021, the largest investment in cryptocurrencies by a mainstream firm.
El Salvador was the first country to recognize Bitcoin as legal money. El Salvador is also planning to establish a Bitcoin city.
Furthermore, in 2021, big corporations added Bitcoin to their reserves. Bitcoin has been added to the company reserves of Mastercard, Bank of New York Mellon, and Twitter.
If Bitcoin can accomplish all of this in only 12 years, think what a single bitcoin can accomplish in the following 12 years.
History of Bitcoin Prices
Since its humble origins, Bitcoin has taken investors and the rest of the globe on a wild journey. In just over a decade, it rose and plunged, rallied and sank again.
Bitcoin’s price crossed $1 in February 2011, and it remained under $2 for the next few years. In June 2011, the price soared to around $31 before plummeting down into the single digits.
Bitcoin’s price hit $200 two years later, in 2017, and by the end of the year, it was worth more than $1,000. It subsequently increased tenfold to $10,000 in November 2017, with the peak price in December 2017 being at $19,650. Convert Bitcoin to Indian Rupees here.
From 2017 to 2019, there were additional ups and downs, with the largest peak being in January 2018, at roughly $17,527. In December 2018, the lowest drop was roughly $3,236.
Bitcoin’s price began to accelerate its upward trajectory in 2020. Bitcoin’s price had climbed by more than 300 percent since January by December 2020.
Bitcoin’s value doubled in 2021, and it surpassed its previous all-time high of more over $68,000 on November 10. However, by January 2022, it had dropped below $35,000 once more.
While some analysts anticipate Bitcoin’s price will exceed $100,000, we don’t know when or if it will happen.
The Future of a Limited-Supply Bitcoin
In the 12 years since its creation, 83 percent of all Bitcoin has already been mined. Based on Bitcoin’s halving timetables and network activity projections, 97 percent of Bitcoin would already exist by the early 2030s, with the remaining 3 percent appearing over the next 110 years until 2140. Though the first 90% was completed in just over a decade, the final 10% will not be completed until the following century.
Surprisingly, prices have tracked the rising supply of bitcoin on the open market.
In early 2010, the price of bitcoin was $0.10 because only 10% of it had been mined. At 50% in December 2012, prices were hovering around $7.50. Today, nine years later, with 90% supply, one bitcoin is worth around $50,000.
Bitcoin’s price will only rise due to a drop in supply and an exponential increase in demand.
What happens if the entire 21 million are mined? After the maximum number of bitcoins is achieved, no further bitcoins will be issued. Bitcoin transactions will be pooled and processed as before, and Bitcoin miners will be compensated.
It should be noted that not all bitcoins mined are available on the open market. Almost 3.7 million bitcoins have been lost owing to a variety of factors ranging from people misplacing their private keys to death.