Bitcoin, the world’s first cryptocurrency, was created in 2009 by an unknown individual or group using the pseudonym Satoshi Nakamoto. At its inception, Bitcoin had no set value, as it was not yet traded on any exchanges. However, the first transaction involving Bitcoin took place on January 12, 2009, when Satoshi Nakamoto sent 10 Bitcoins to Hal Finney, a computer programmer and early Bitcoin adopter.
It wasn’t until March 17, 2010, that Bitcoin received its first official price when an online forum user named “SmokeTooMuch” offered to sell 10,000 Bitcoins for $50. At the time, this was the equivalent of $0.003 per Bitcoin. This price was based on the cost of electricity used to mine each Bitcoin, as well as the cost of the hardware used to mine them.
In May 2010, the first Bitcoin exchange, BitcoinMarket.com, was established, allowing people to buy and sell Bitcoins for the first time. The first recorded price on the exchange was $0.0025 per Bitcoin, which was still based on the cost of mining and the cost of electricity.
By July 2010, the price of Bitcoin had risen to $0.08, a significant increase from its initial price of $0.003. This increase was due to growing interest in Bitcoin and the fact that more people were beginning to mine and trade it.
In December 2010, Bitcoin reached its first major milestone when its price surpassed $1 for the first time. This was a significant milestone, as it showed that Bitcoin had mainstream appeal and was no longer just a niche technology.
In 2011, Bitcoin continued to gain popularity, and its price continued to rise. By June 2011, the price of Bitcoin had reached $31, a new all-time high. However, this increase was short-lived, and the price soon fell back down to around $2.
Over the next few years, Bitcoin experienced several major price swings. In 2013, the price of Bitcoin reached an all-time high of $1,242, before crashing back down to around $200 in early 2015. This crash was due to several factors, including the collapse of the Mt. Gox exchange and increased regulatory scrutiny.
Since then, Bitcoin has continued to experience significant price swings, but its overall trajectory has been upwards. As of August 2021, the price of Bitcoin is around $45,000, a far cry from its initial price of $0.003.
In conclusion, the original price of Bitcoin was $0.003, based on the cost of mining and the cost of electricity. However, Bitcoin’s price has since skyrocketed, reaching an all-time high of $1,242 in 2013 and currently trading at around $45,000. Despite its volatile price history, Bitcoin has gained mainstream acceptance and is now widely traded and accepted as a form of payment.