Bitcoin: Seven Wildest Moments in Its Turbulent History

The price of a single bitcoin has surpassed $100,000 for the first time, prompting celebrations from cryptocurrency enthusiasts around the world.

Bitcoin’s wildly fluctuating price has always attracted interest, as its backers react with glee. Previous price limits have been passed. – and violation During his absence.

But this particular sign is especially eagerly anticipated. For weeks, charts, memes and predictions have been circulating on social media about when the price will hit the figure that is believed to be one of the holy grails of the crypto world.

Millions of viewers also attended online watch parties as the price was close to $100k.

According to analysis firm Coin MarketCap, the value of one bitcoin is one of the barometers of optimism in the cryptocurrency industry which is now estimated to be worth $3.3tn.

The latest spike is driven by the re-election of Donald Trump as US president.

The president-elect has vowed to make the U.S. the “crypto capital of the planet” — a remarkable shift given that as recently as 2021 he was calling bitcoin a “scam.”

It is also worth noting how the price of Bitcoin has risen. The $100k value represents a 40% increase on Election Day in the US and more than doubles this year’s value.

But there’s more to Bitcoin than its surprising changes in value.

From its mysterious inventor to the fall of the so-called crypto king, it is a story with many twists and turns, which has seen huge fortunes made and lost.

So here’s the BBC’s list of the seven wildest moments – so far – in Bitcoin’s tumultuous history.

1. The Mysterious Creator of Bitcoin

Despite its huge profile, no one really knows who invented Bitcoin. The idea was posted on Internet forums in 2008 by someone calling himself Satoshi Nakamoto.

He explained how a peer-to-peer digital cash system could work to enable people to send virtual coins over the Internet, as easily as sending email.

Satoshi created a complex computer system that would process transactions and create new coins using a huge network of self-made volunteers around the world who used specialized software and powerful computers.

But he – or they – never revealed their identity, and the world never acted on it.

In 2014, Japanese-American man Dorian Nakamoto was pursued by reporters who believed he was the ardent creator of Bitcoin, but it turned out to be a false lead due to some mistranslated information.

Australian computer scientist Craig Wright said in 2016 that he was – but after years of legal battles, a High Court judge concluded that he was not Satoshi.

Earlier this year, Canadian Bitcoin expert Peter Todd called vehemently denied being Satoshi.While this month in London, a British man, Stephen Mulla, claimed that he – But no one believed him..

2. Making a date with pizza

Bitcoin now underpins the $2 trillion cryptocurrency industry — but the first recorded transaction using it was a pizza purchase.

On May 22, 2010, Lazlo Hanyecz offered $41 worth of Bitcoin on a crypto forum in exchange for two pizzas.

A 19-year-old student obliged and the day went down in history as #BitcoinPizza Day for currency enthusiasts.

A source of memes for those in the crypto community, it also showcased the power of Bitcoin – an internet money that can literally buy things online.

Criminals must have been watching, too, because within a year the first darknet marketplace was selling drugs and other illegal goods for bitcoin.

The deal is looking pretty bad for Laszlo now, too. If he had held on to these coins, they would now be worth millions of dollars!

3. To be legal tender

In September 2021, Naib Buquel, the president of El Salvador in Central America, made bitcoin legal tender.

Hairdressers, supermarkets and other shops had to legally accept Bitcoin with its main currency being the US dollar.

Many Bitcoin enthusiasts and reporters visited the area, briefly boosting tourism in the country.

Although President Bokel hoped the move would increase investment in his country and reduce citizens’ money exchange costs, it was not as popular as he had hoped.

He is still hoping it will end but for now the US dollar remains king in the country.

Along with the public money President Bockel spent trying to get people to adopt Bitcoin, he also, controversially, bought more than 6,000 Bitcoins in the last few years.

The president spent at least $120 million to buy bitcoins at various prices in hopes of making a profit for his cash-strapped country.

This It felt good For him in December 2023 when, for the first time, his stock price started to skyrocket.

is a website created by the Dutch software engineer Elias Zerouk. Country Bitcoin Tracking Holdings and is currently estimated to have increased in value by 98%.

4. Kazakhstan’s crypto boom and bust

In 2021, Kazakhstan became a hotspot for Bitcoin mining – the process of crunching through the complex calculations that underpin crypto transactions.

These days it takes warehouses full of state-of-the-art computers running all day and all night, but the prize for participating companies is brand new bitcoins.

Computer warehouses required a lot of electricity – and many businesses moved to Kazakhstan where electricity was abundant thanks to large coal deposits.

At first, the government welcomed them with an open heart because they brought investment.

But too many miners arrived and put a huge strain on the power grid, putting the country at risk of blackouts.

Within a year, Kazakhstan’s bitcoin mining industry took off. From boom to bust As the government imposed restrictions and increased taxes to prevent growth.

Worldwide, it has been estimated that the Bitcoin network consumes as much electricity as a small country, raising concerns about its environmental impact.

5. Bitcoins in the trash

Imagine a crypto wallet worth more than $100m (£78m) – and then To throw accidentally A hard drive containing login details.

James Howells from South Wales says this is what happened to him.

The nature of crypto means recovery isn’t as simple as resetting your password. Without a bank – there is no customer support helpline.

Unfortunately for him, his local council in Newport refused to give him access to the landfill site where he says the device ended up – even after he spent 25% of his bitcoin stash. % Offered to donate to local charities if they would allow it.

He told the BBC: “It was a penny-dropping moment and it was a sinking feeling.”

6. Crypto King Fraudster

No one has lost as much Bitcoin as ex-billionaire crypto mogul, Sam Bankman Fried. The founder of the massive crypto firm FTX was nicknamed the Crypto King and loved by the community.

FTX was a cryptocurrency exchange that allowed people to trade real money for cryptocurrencies like Bitcoin.

His empire was worth an estimated $32bn and was flying high until everything collapsed within days.

Journalists discovered that Bankman-Fried’s company was financially shaky and was illegally diverting FTX customer funds to prop up another company, Alameda Research.

He spoke to reporters before his arrest in December 2022 at his luxury apartment complex in the Bahamas. He told the BBC: “I don’t think I committed fraud. I didn’t mean for any of it. I certainly wasn’t as capable as I thought.”

After being extradited to the US, he was found guilty of fraud and money laundering. 25 years imprisonment.

7. The investment bank boom

Despite all the turmoil, Bitcoin continues to attract the attention of investors and large companies.

In fact, in January 2024, some of the world’s largest financial firms added Bitcoin to their official asset lists as Spot Bitcoin ETFs. These are like stocks and shares, which are tied to the value of Bitcoin but you don’t have to personally own any.

Consumers are pouring billions of dollars into these brand new products. There have also been companies including Blackrock, Fidelity and GrayScale. Buying Bitcoins in their thousandspushing its price to record highs.

This is a huge milestone for crypto with some fans believing that Bitcoin is finally being taken as seriously as the mysterious Satoshi envisioned.

Still, some will push back against more wild moments as the bitcoin story unfolds.