The Price History of Bitcoin

Bitcoin’s Price History

bitcoin

Bitcoin is a cryptocurrency or a form of money which the management and creation use the control of cryptography. Since the debut in 2009, Bitcoin has a very unstable trading history which traded for nothing. In the 2010, the real price of a single coin of bitcoin starts to increase from $0.0008 to $0.08. Bitcoin next become the important currency in the major trading rallies.

Background

On November 2008, Satoshi Nakamoto released a paper on internet with the title is bitcoin: A Peer-to-Peer Electronic Cash System. The first existence of Bitcoin started to be known as an open-source in the beginning of 2009. Nakamoto use bitcoin for the first transaction in January 2010, but the real-world transaction done in 2010 by miner that owned first block of bitcoin to buy pizza from Papa John with 10.000 BTC (bitcoin).

Using blockchain as the basic of currency, people who use bitcoin can use computer power. Firstly, the cryptographers not really pay lot of attention especially to use bitcoin for transaction. Then in the 2012 and 2013, bitcoin gains popularity when some retailers start to use them. The trading currency for per bitcoin is $13.50. In the early April 2013, bitcoin went over $220 but also drop down quickly to $70 in the mid April.

The Increasing of Trading and Volatility

The actual bitcoin rally started in with trading currency at $100 in the beginning of October 2013. In the end of the month, it moved up to $195. The value was increasing intensely from $200 to more than $1,120 in the end November. This intense rally was happened due to China’s miners and new bitcoin exchanges entering the trading market. Especially when Mt. Gox exchange owned about 70% of transactions started to operate.

The triumph wasn’t last long. Mt. Gox issued having management and security problem which led to the bitcoin shakiness. On the beginning of December, bitcoin price reached the highest number of $1,230, but it felt quickly by Dec 7 to $750, about 39% value dropped. Marketplace tried to stabilize the price in January 2014 to $920. But once again, Mt. Gox experienced the worst problem of bankruptcy in early February. On Feb 4, the price was still around $911, but it suddenly slumped to $260 on Feb 16 which reached 71% of decline.

However, the trading price could recover on March 2014 around $620. There was gradual decline to $600 on July and eroded to half price around $315 in beginning of 2015. In the summer of 2015, the price could be stabilized at some extent. In October 23 the price went down to $275, then it started to increase again to $460 on Nov 4. In the end of November 2015, the currency of bitcoin traded around $360.

Also read: How to trade moving averages like a pro

Arbitrage across Exchanges

The arbitrage opportunities of bitcoin across various exchanges can be happened because it is traded on non-centralized number of independent exchanges. The differences of prices among exchanges lead to arbitrage. If there is lacks in the centralized exchange, the uniform price might be difficult.

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