Rain Blog

News and updates from the leading cryptocurrency platform in the Middle East

Bitcoin Price History and Everything You Need to Know

By Mohamed Saber Farrag - Oct 15, 4:00 AM

Summary

  • Bitcoin is an open source peer-to-peer network that supports digital payments using blockchain technology.

  • Bitcoin is a digital currency that operates without any governments or banks regulating it (i.e. it is a decentralized digital currency)

  • All entries of transactions using the Bitcoin record on a public ledger. Copies of these transactions remain stored on servers in different places around the world

  • Since its launch in 2011 the bitcoin price has had a number of high and low points in the cryptocurrency market. You will get a detailed breakdown of the Bitcoin history in this article, so keep reading

  • Rain is a licensed and secure bitcoin exchange that makes it easier for users in GCC and Turkey to buy, sell, trade, and store bitcoin on their secure wallets.

  • Rain offers the best bitcoin price in the region.

The Bitcoin price in the market keeps changing, but despite the highs and lows, investing in Bitcoin gives crypto traders a huge opportunity. Over the years, BTC price highs and lows have led to some reservations by analysts, but there is a lot more to this digital currency that makes it a great investment. Therefore, there is a bull run for bitcoin at intervals, and if you are planning to invest in cryptocurrency, this may be the right time.

Rain offers a cryptocurrency exchange platform where one can trade at the best BTC price, using a secure wallet. To help you understand bitcoin and its market value before the next bull run, here is what you need to know.

What is Bitcoin?

It is a digital currency that is not subject to oversight by governments or banks. It relies on peer-to-peer transfers,  

Bitcoin has become one of the most popular virtual currencies in the world since its inception on 3 January 2009. The creators of Bitcoin were a group of computer programmers, who went with the anonym “Satoshi Nakamoto.” They launched the Bitcoin network or peer-to-peer electronic payment system that would use the bitcoin (with lowercase b) cryptocurrency. Today, Bitcoin is the most successful digital currency with a high trade value.

Each bitcoin consists of 100,000,000 satoshis which are the smallest bitcoin units. This makes each bitcoin divisible up to eight decimal places. This in turn allows people to purchase fractions of bitcoin with a little investment.

Over the years, the market value of Bitcoin has seen its highs and lows, and now it has made its place globally. It is the world’s first decentralized cryptocurrency and a digital asset that works on blockchain technology. The public-key cryptography technique allows users to sign, record, and make unique transactions using Bitcoin.

Bitcoin does not exist in the physical form. It is a virtual currency with value, saved on a secure digital wallet, and easily shared between the sender and receiver. It does not require any intermediary banking platforms to facilitate the transactions. Moreover, everything is through the transparent distributed ledger technology known as the blockchain.

How Does Bitcoin Work?

Bitcoin users input the public-key information associated with their digital wallet to send and receive bitcoins across the network. There is a small fee per transaction to serve as an incentive for the miners who are verifying the bitcoin transactions. Whichever miner adds the transaction to the blockchain gets the fee as a reward. The fee depends on a first-price auction system. In this scenario, the higher the fee attached to the bitcoin transaction, it is more likely that the miner will process that transaction first.

What is Bitcoin Mining

Mining is a process in which miners use equipment known as the Application-Specific Integrated Circuit or ASIC. It is specialized computer equipment that unlocks the next block in the blockchain.

How Unlocking Blockchain Works

The mining method requires miners to comply with the Proof-of-Work system as they use the specific machines, spend time, and energy to mine blocks. This systematic approach prevents malicious agents from disrupting or spamming the blockchain network.

Miners who succeed in unlocking the next block add a number to the transaction to the new block. Also, the miners receive the block reward, often in bitcoin.

A Quick History of Bitcoin Block Mining

Over time, bitcoin block rewards keep decreasing. For every 210,000 blocks, the block reward is halved. Halving is the main trigger for the “bull market” or the “Bull run.”

Halving reduces the number of bitcoins entering the blockchain. In 2021, miners received 6.25 bitcoins each time they would mine a new block. The next bitcoin halving is in 2024, and the bitcoin block reward will likely drop to 3.125 bitcoins per block. Therefore, as the supply of new bitcoins gets smaller, the more competitive the bitcoin market will become. However, this is assuming the demand for bitcoin continues to increase.

Bitcoin Mining Energy Consumption

Using resources to mine bitcoin blocks comes at a price. There are reports of high electrical energy consumption each year due to bitcoin mining. However, Bitcoin is a complete financial system that measures and tracks energy consumption, unlike other systems. It is necessary to mention that Bitcoin mining uses 1.29% of energy consumption from a single country. This has led to widespread criticism.

In addition, there are initiatives underway (like the Bitcoin Mining Council and Crypto Climate Accord) to improve the bitcoin carbon footprint by urging miners to use renewable energy sources.

What is the Bull Run or Bull Market?

A bull run or bull market is a period in which numerous investors buy. During this time, demand is greater than supply, confidence in the market is high, and prices rise.

The main factor that affects the BTC price is the relationship between demand and supply. As mentioned earlier, halving triggers a bull run because it reduces the supply even more. When halving takes place, it makes mining more expensive for miners while supply remains fixed at 21 million. Consequently, with every halving, the BTC price increases.

What Makes This Bull Run Different?

This bull cycle is very different from previous ones because now institutions and investors can easily obtain bitcoins. The reason for this is that now there are more online trading platforms, one of which is Rain.

Rain makes it easier for users to safely store their cryptocurrencies in a secure wallet and buy and sell at the best prices. Another reason this bull cycle is different is that investors are driving the BTC demand by supporting this digital currency. Moreover, today there is more awareness about the advantage and support for cryptocurrencies and blockchain technology. These factors are making a positive impact on the demand for bitcoin and other digital currencies in the market.

Previous Bull Runs

After the bitcoin halving in 2012, the price increased from $11 to $12, but in a year after that, the price increased to $1,075.

After the bitcoin halving in 2016, the most notable bull run took place, increasing the bitcoin price from $576 to $650. A year later, there was a steady growth in the bull cycle, and by December 2017, the bitcoin price reached $17,000.

By 2018, there was low volatility and bitcoin had a steady growth into 2019, and by June that year, bitcoin price was $10,000.

Therefore, the future of bitcoin prices is positive and predictable.

Bitcoin Price History

In the past thirteen years, it has been a bumpy ride for bitcoin investors. Aside from the rises and drops in bitcoin price, fraudsters and scammers have added to the volatility of BTC price. There have been good times when bitcoin prices had a massive increase. Bitcoin price increases and decreases are what we call the “price bubble.”

2011

In 2011, the bitcoin price increased from $1 in April to $32 in June. However, due to the recession in crypto markets, by November 2011, the price dropped to $2.

2012

In 2012, there was an increase in Bitcoin price to $4.80 by May and it continued to rise to $13.20 by August.

2013

2013 proved a pivotal year for BTC price with two price bubbles. That year, digital currency trading began at $13.40. BTC price increased to $220 by the beginning of April. As swiftly as it increased, by mid of April, the bitcoin price dropped to $70. However, by October, the bitcoin trade was at $123.20. In December, BTC price saw a spike, reaching $1,156.10, which ended too soon. Within three days, the price dropped to $760.

2015

These rapid price bubbles were a sign of a multiyear slump for BTC price. By the beginning of 2015, the bitcoin price in crypto trading platforms was $315.

2017

The beginning of 2017 was witness to the fifth price bubble when the bitcoin price was about $1,000. There was a two-month period of decline in BTC price, and by March it was at $975.70. By December BTC price rose to $20,089. This helped bring Bitcoin into the spotlight – economists and governments noticed this digital currency. Soon analysts were debating over BTC value in the trade market and trying to make BTC price forecasts.

2019

Like it happened in the past, Bitcoin price was on the rise and fall for two consecutive years. In June 2019, there was a resurgence in trading volume and BTC price when it surpassed $10,000. This event rekindled hopes in cryptocurrency traders for another rally. However, by December 2019, the BTC price dropped to $7,112.73.

2020

By 2020, Bitcoin price witnessed a burst of activity due to the pandemic that affected the economy. The shutdown due to the pandemic and resulting government policies led investors to fear a bad global economy. This accelerated crypto trading and caused the value of bitcoin to increase. By the end of 2020, in November the Bitcoin price was $18,353. 2020 saw a rise in BTC price by December when it was at $24,000.

2021

In less than a month, the BTC price increased and by January 2021, it was at $40,000. By April 2021, BTC price was at its peak, valuing at more than $64,000. By summer 2021, prices dropped by 50%, making BTC price $32,000. Autumn 2021 saw another bull run when prices spiked to $50,000, but this was short-lived and followed by drawdowns bringing the BTC price to $42,500.

Factors That Influenced Early Bitcoin Price & Trading

In the early years of Bitcoin, liquidity was thin, and very few people were investing in cryptocurrency markets. The situation led to wide price swings, and due to this, there were reports of a ban on cryptocurrency exchanges. The rise and fall of cryptocurrency exchanges influenced the bitcoin price.

Mainstream online retailers also played an important part in the bitcoin price fluctuations. In 2014, the bitcoin price crossed $1000 when Overstock announced its intent to buy bitcoins and accept them.

As the bitcoin network grew, so also did mining difficulty and the need to use more energy for the mining equipment.

A Quick Bitcoin Price Analysis & Forecast

Here are some important things that will help you understand that it is a good time to invest in bitcoin now. Let us analyze and make a rough forecast based on the facts available above.

At What Price Did Bitcoin Start Trading?

It started trading in July 2010, starting from $0.0008 to $0.08 per coin.

How Much Was One Bitcoin Worth in 2009?

The bitcoin price was worth $0 in 2009. Early adopters traded it for free.

What is the Highest Price Bitcoin Has Reached?

On April 14, 2021, Bitcoin price reached an all-time high of $64,863

What will One Bitcoin Be Worth in 2030?

Making accurate predictions is not possible. Nonetheless, one may say that the future value of bitcoin can be between $397,000 and $500,000 per coin by 2030.

How to Buy Bitcoin in GCC and Turkey

Buy bitcoin from a licensed bitcoin exchange, one of which is Rain.bh.

Rain is a leading and trusted cryptocurrency trading platform in the Middle East. It is a licensed Cryptocurrency platform and custodian of different cryptocurrencies. It is a platform trusted by thousands of customers in over 50 countries.

What is a Bitcoin Exchange?

A bitcoin exchange is an online currency exchange or a digital marketplace, that serves as a platform and intermediary where cryptocurrency traders can buy and sell bitcoins, using different fiat currencies.

Benefits of Using a Bitcoin Exchange

Here are some benefits of trading bitcoin through bitcoin exchanges:

  • Decentralization and speedy transfers of currency

  • 24/7 operational system

  • Deflationary nature of the digital currency

  • Transparency due to blockchain technology

  • Secure interface - Keep your currency safe in a digital wallet

  • Unlink bank transfers to prevent reversible transactions

What Can Bitcoin Be Exchanged For?

Bitcoin allows cryptocurrency users to exchange currency with each other without any trusted third party or a bank system.

Is it safe to keep Bitcoin on exchange?

Rain is a very safe and reliable cryptocurrency exchange, which accepts many different payment methods. You can store your bitcoin or other cryptocurrencies that you trade with on Rain in your secure wallet.

What Makes Rain one of the Best Bitcoin Exchange Platforms

In the Middle East, many prefer Rain as their best Bitcoin exchange because buying and selling cryptocurrencies is very easy and safe through this platform. You can also use the mobile app on the go. Rain implements strict security protocols and offers transparent pricing. Through Rain, you can be sure to get the best bitcoin price in the market.

You are all set to begin bitcoin trading through Rain. If you need more information or assistance to get started, feel free to get in touch.

Rain is licensed by the Central Bank of Bahrain as a Category 3 Crypto-Asset Services Provider. We are headquartered in the Kingdom of Bahrain

Company

Learn

Careers

Social

Scan to download

iOS & Android

Downloads

Copyright 2022 Rain Management WLL