History of bitcoin

Bitcoin is a cryptocurrency, a digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management, rather than relying on central authorities.[1] The presumed pseudonymous Satoshi Nakamoto integrated many existing ideas from the cypherpunk community when creating bitcoin.

Prices and value history

Among the factors which may have contributed to this rise were the European sovereign-debt crisis—particularly the 2012–2013 Cypriot financial crisis—statements by FinCEN improving the currency's legal standing and rising media and Internet interest.[124][125][126][127]

Until 2013, almost all market with bitcoins were in US $.[128][129][130]

As the market valuation of the total stock of bitcoins approached US$1 billion, some commentators called bitcoin prices a bubble.[131][132][133] In early April 2013, the price per bitcoin dropped from $266 to around $50 and then rose to around $100. Over two weeks starting late June 2013 the price dropped steadily to $70. The price began to recover, peaking once again on 1 October at $140. On 2 October, The Silk Road was seized by the FBI. This seizure caused a flash crash to $110. The price quickly rebounded, returning to $200 several weeks later.[134] The latest run went from $200 on 3 November to $900 on 18 November.[135] Bitcoin passed US$1,000 on 28 November 2013 at Mt. Gox.

Prices fell to around $400 in April 2014, before rallying in the middle of the year. They then declined to not much more than $200 in early 2015.[136]

In the second quarter of 2017, prices more than doubled from $1200 to over $2500.