If you had told a trader 10 years ago that a digital-only asset was to emerge and produce gains unrivaled by anything currently in the market over the course of a decade, you’d have been labeled a madman (or woman).
That’s right. When Bitcoin (BTC), the world’s first decentralized, blockchain-based digital currency hit the scene, no one knew what to make of it. It was so virtually worthless, that a man had to use 10,000 of them to afford a couple of pizzas in 2010 worth $30.
Today, Bitcoin value has jumped from a couple of cents to $7,316 dollars, and that pizza order? It’s worth $73 million dollars today. With around 18.136 million Bitcoins currently in circulation, that represents an accumulated asset fortune of $132.7 billion, all generated from a decentralized, virtual, digital currency, in the span of 11 years.
Who’s the madman now?
The decade’s best performing assetBitcoin is a true anomaly. There has been nothing truly like it before, especially when it came to its perfomance over the decade.
According to data compiled by Bloomberg, Bitcoin has posted gains of more than 9,000,000% since July 2010. You didn’t misread that – I said 9 million percent.
“Nothing else comes even close to beating [Bitcoin’s performance in the past 10 years],” Bloomberg writes. “The S&P 500 merely tripled in that period. An index that tracks world markets has more than doubled. Gold is up 25%. Some of the best-performing stocks in the Russell 3000 — including Exact Sciences Corp. and Intelligent Systems Corp. — are each up about 3,000%. Those gains pale in comparison to the finance world’s latest – and one of its most controversial – marvels.”
Bitcoin’s obscure origins
Released by a digital persona under the name of Satoshi Nakamoto during January 2009, Bitcoin was valued at mere cents after one year of existence. It was so trivial that even after a year and a half, a Florida programmer had to use 10,000 of them to afford the aforementioned pizza order.
As is the case with anonymous affairs and proceedings on the internet, most people didn’t make much of it. Bitcoin was reserved for the benign and not so benign – those with technical leanings or know-how, and shady deep web forums respectively. Essentially, Bitcoin was a technological marvel for the expert eye, and an untraceable currency for threat actors.
Basically, Bitcoin’s 2009 debut could be seen as a direct reaction to the catstropic gloal recession of 2008. When centralized banking and financial systems failed us, Satoshi Nakamoto had come up with the alternative. Still, Bitcoin offered quite the leap of faith, and so it took some time before it began picking up steam. that happened in 2017, when its value finally blew up.
If Bitcoin truly finds a place in the future of our society, 2017 will go down in the history books as the year it made its claim to fame. Starting the year at under $1,000, the cryptocurrency exploded, eventually landing at around $19,000 in December. No one knows exactly why 2017 was the year it happened, but the theories are plenty. Some believe it was market manipulation by HODLrs, others stated that more mainstream acceptance by large corporations like Microsoft had cemented the Jackpot appeal of the digital token. Regardless, 2017 was the year of Bitcoin, no questions about it.
Since then, it’s been a bumpy ride. With many ups and downs, Bitcoin’s value today is a fraction of its 2017 high. However, with more and more corporations adopting blockchain and cryptocurrency technology, as well as regulators finally giving it serious consideration, it is clear Bitcoin (and its various ilk) won’t be going away like most Internet-borne fads. As for the value of Bitcoin, expect it to make further gains as an event known as the halvening takes place this year. With miners payouts halving per block mined, there will naturally be a push in demand as supplies become more limited.