A pizza meal is more expensive than gold… Bitcoin’s journey from scratch to an economic revolution

In the winter of 2008, as the world teetered on the brink of the largest financial crisis since the Great Depression, a mysterious document titled “Peer-to-Peer Electronic Cash System” emerged.
The timing was not a coincidence; This document was a rebellion against the centralization of traditional financial systems. Its owner, known by the pseudonym Satoshi Nakamoto, presented a radical vision: a digital currency that is not subject to the control of governments or banks, but rather is managed entirely through a decentralized network powered by blockchain technology.

The idea becomes reality

On January 3, 2009, the first block, known as the “Genesis Block,” was mined and was like the cornerstone of a new economic temple.
Initially, Bitcoin had no real value, but a simple event in 2010 changed the perception of it forever: a programmer bought a pizza for 10,000 Bitcoin.
This was not just an ordinary transaction, but an announcement that this digital currency could be used in everyday life.

From the margins of technology to the heart of economics

Despite its humble beginning, it quickly gained momentum. In 2011, exchanges such as Mt. Gox emerged that helped turn Bitcoin into a real financial asset that can be easily traded.
However, the journey was fraught with danger, as Bitcoin was used on black markets such as Silk Road, earning it a shady reputation and making governments view it with suspicion.
By 2017, Bitcoin had overcome these hurdles to reach its first peak, with its value exceeding $19,000.
But this meteoric rise was followed by a dramatic collapse, which raised questions about its stability. However, Bitcoin continued to redefine itself as a digital asset that combines technology and money, especially with the entry of major financial institutions into the world of digital currencies.

Technical and economic aspect

Blockchain technology, on which Bitcoin is based, is not just a digital ledger, but a revolution in data management. This technology allows transparency, as every transaction is recorded in an immutable public ledger.
Economically, Bitcoin introduced a new model of money based on scarcity; The number of its units is limited to only 21 million currencies, which makes it similar to digital gold.

Bitcoin’s global impact

At the level of emerging economies, Bitcoin has become a means of confronting crises. In countries like Venezuela and Turkey, as inflation eats into the purchasing power of the local currency, citizens have turned to Bitcoin as a safe haven to preserve value.
In Africa, digital currency has transcended the boundaries of traditional banks, enabling millions to access financial services without the need for bank accounts.
On the political level, Bitcoin has sparked global financial liberalization movements. In countries subject to economic sanctions, digital currencies have become a means of circumventing international financial systems.
But this political role did not come without consequences. It has prompted major governments such as the United States and China to strictly regulate the cryptocurrency market for fear of losing control.

The future of money or a temporary bubble?

Today, Bitcoin is viewed as more than just a currency; It is a tool to hedge against inflation, and a means to redistribute economic power.
As countries like El Salvador enter the cryptocurrency scene, it has become clear that Bitcoin has transcended being an idea to become a player in reshaping the global economy.
Despite criticism regarding its price volatility and excessive energy consumption, Bitcoin remains a symbol of innovation. His story is not just about money, but about belief in the power of ideas to change the world. What began as a rebellion against a collapsing regime has today become a force reshaping the global economy, and its journey continues.

Bitcoin is a virtual, encrypted currency that is traded over the Internet and does not have a physical existence.

A number of digital monetary technologies preceded Bitcoin, the most important of which was the ecash technology developed by mathematician David Chaum in 1987, which is electronic money based on encryption protocols.

Bitcoin history

Between 1998 and 2005, WeD launched the idea of ​​decentralized encryption, and Nick Zuber developed the “Bit Gold” project, a digital currency based on decentralization, and this system was subjected to a strong attack.

Satoshi Nakamoto began working on the principle of Bitcoin in 2007 AD in Japan, and in 2008 AD the site bitc oin.org was registered as a domain, and the first version of the currency was launched in January 2009.
The first bitcoin-dollar trading price was then published and set its value at 1,309.03 Bitcoin per US dollar, using a formula that included the electricity costs of running the computer that issues Bitcoin units.

The new digital currency did not find interest in the first years, and dealing with it began to be slow and limited, and dealing with it was limited to a small number of amateurs who carried out buying or selling operations.

Bitcoin exchange

In February 2010 AD, the Bitcoin market was established as an exchange for the Bitcoin currency, and the first real global transaction using it occurred when 10,000 Bitcoins were paid for a pizza on the Bitcoin forum, and the exchange rate for purchasing a pizza at that time was about 25 US dollars.

In October 2009, the first critical transaction that gave Bitcoin real monetary value was completed: Finnish computer science student Marti Mali, known as Cyrus online, sold 5,050 coins for about 414.65 Indian rupees, equivalent to $0.0009 per Bitcoin.

In May 2010, the price of Bitcoin made a stunning jump, briefly surpassing $8.

June 2011 witnessed a significant rise in Bitcoin, as its price rose to $30. Before recording a gradual decline, reaching its lowest level at the end of 2011 at two dollars, leaving a feeling of disappointment among many investors.

At the end of 2012, the price of Bitcoin had stabilized at $13.50, marking a new rise for the digital currency.

In 2013, demand for the currency increased, and the first Bitcoin ATM was installed in Vancouver. This made it easier for buyers to easily convert fiat currencies into digital currencies, which contributed to expanding the Bitcoin user base.

In early January 2014, the price of Bitcoin had reached $1,000, before its value collapsed catastrophically on February 21 to $111.60, a decline of 90%.
This is due to cyberattacks and security breaches faced by the stock exchange, which led to a significant loss in digital currencies, which undermined investors’ confidence in Bitcoin.

In November 2015, the official token for the digital currency (B) was adopted.

In April 2019, Bitcoin succeeded in reaching its price of $5,000, and amid ups and downs, the currency completed 2019 at $7,200.

In October 2020, its price was close to $20,000 as a result of the liquidity provided by the Federal Reserve in light of the spread of the Covid-19 pandemic and the hopes of the emergence of a vaccine for it. The price reached $28,949 by the end of the year.

In September 2021, China announced that all digital currency transactions were illegal, but the currency did not heed China’s warnings and continued to rise to exceed $60,000, then $68,789, and on November 10, 2021, Bitcoin had reached its peak at more than $64,000. .

Low liquidity

With the intention of the US Central Bank to reduce high prices, with the possibility of a decrease in liquidity in the market, cryptocurrencies and Bitcoin were affected, starting in early November 2022 AD.
This recession continued in 2022, with Bitcoin setting, in the middle of it, a new trading range around $20,000, then falling to less than $16,000 as a result of events, most notably the collapse of the FTX platform – a cryptocurrency exchange that declared bankruptcy in November 2022.

Investment funds

In October 2023, Bitcoin began to rise again and reached over $42,000 at the end of the year, amid rumors that the SEC would finally allow the creation of Bitcoin ETFs.

On January 11, 2024, Bitcoin ETFs began trading, with the price peaking at around $49,000 in the days leading up to the announcement.

On March 7, the price of Bitcoin rose by as much as 6.8% to its session high of $67,645, with the price actually rising by 55%.

On December 17, 2024, the price of Bitcoin reached $106,714.33, setting a new record high, with investors optimistic about the possibility of the Federal Reserve lowering interest rates this week.