February 9th, 2011 was the day when Bitcoin’s price touched $1. The very first Bitcoin block was created on the blockchain in 2009. When it was introduced, people who wanted to invest had to mine it themselves. The other alternative was to arrange a trade with peers in the same field via forums like Bitcointalk. This forum was set up by the creator of the coin, Satoshi Nakamoto.
Being new and unknown, peer trades were considered risky as trust was required between parties. One good thing about trading back then was that Bitcoin wasn’t very expensive. The first bitcoins to ever be transacted cost 39 cents per BTC.
Less than a year later, Bitcoin had grown and new ways to buy had emerged. Gavin Andresen, Bitcoin’s primary developer set up a “faucet” which was essentially a website to give anyone who set up a wallet/address 5 BTC for free. This is when the very first bitcoin exchanges were created. Before Bitcoin Market, the first real exchange was set up, buyers had to send money using PayPal. Coins would be held in escrow till the seller received their money.
After reaching the $1 figure, bitcoin prices began to rise quickly and peaked at $29.6 just three months later. This is a pattern that is familiar to every investor. Bitcoin prices tanked and were at $2.05 in November 2011. The lucky few who bought in at $1 and held on have made out handsomely. The all-time market price touched $69,000 not too long ago. According to some experts, prices are projected to reach $150,000.
