Before Bitcoin became an investable asset, a fundamental question stood at the center: Is it possible to create digital money that works without banks and is not controlled by any central authority?

The creator, known under the pseudonym Satoshi Nakamoto, published a whitepaper in 2008 that aimed to solve exactly this problem. The goal was a network that enables transactions directly between individuals-without banks, intermediaries, or central oversight. The network was designed to be open, transparent, and secure. The money supply would be fixed, ensuring that no one could “print new money”.

On January 3, 2009, the system officially launched. Bitcoin was born. At that time, almost no one knew about the project, and there was no market price. It remained an experiment among tech enthusiasts.

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1. The Early Phase: Bitcoin Has No Market Price (2009–2010)

In the early years, Bitcoins had virtually no monetary value because nobody was buying or selling them. Users experimented with the system, mined new coins, and discussed the underlying technology.

A breakthrough came in 2010. A programmer named Laszlo Hanyecz proposed buying something real with Bitcoin-as a test. On May 22, 2010, he ordered two pizzas and paid 10,000 BTC for them. Today, this date is celebrated as Bitcoin Pizza Day.

This event marked the first practical market price for Bitcoin: approximately 0.0025 USD per BTC. It was the moment when an idea became a tradable asset.

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2. Growing Awareness-and First Signs of Instability (2011–2013)

As the first trading websites emerged, a real market began to form. The price climbed above 1 USD for the first time, and later briefly surpassed 30 USD. But the market was tiny, largely unregulated, and technologically immature-conditions that led to extreme volatility. One platform in particular shaped this era: Mt. Gox.

What was Mt. Gox?

Mt. Gox was the world’s largest Bitcoin exchange at the time, handling more than 70% of global trading volume. It functioned like a traditional exchange, allowing users to buy and sell Bitcoin.

In 2011, the platform faced its first security issues. In 2014, it collapsed entirely:

• A large portion of the stored Bitcoins was stolen
• The company filed for bankruptcy
• Many users lost their funds

The Mt. Gox failure was a massive shock. It revealed how young and vulnerable the ecosystem still was. Yet it also proved something important:

The Bitcoin network itself continued to function flawlessly. The core technology remained intact-only the exchange had failed.

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3. A Phase of Global Interest (2013–2017)

Over the next years, public interest surged. Media coverage increased, more people created Bitcoin wallets, and governments around the world began considering regulatory approaches.

In 2016, the number of newly mined Bitcoins was cut in half-a recurring event known as the halving, which gradually reduces new supply.

By late 2017, Bitcoin reached an unprecedented price near 20,000 USD, elevating it to global recognition.

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4. Correction and Professionalisation (2018–2020)

After the 2017 surge, a sharp decline followed. Many observers declared it a “burst bubble”.

Yet this period laid critical groundwork:

• Exchanges became more secure
• Regulators introduced clearer rules
• Professional custodians emerged
• Institutional investors began monitoring the asset closely

Bitcoin was slowly transitioning into a more mature, institutional-grade market.

Then, in 2020, the landscape shifted again. The Covid-19 pandemic triggered global economic uncertainty. Governments and central banks implemented highly expansionary monetary policies, and many investors started viewing Bitcoin as a potential hedge against inflation. Prices rose significantly.

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5. A New Environment: Regulation, Interest Rates, and Global Volatility (2021–2023)

The years following the pandemic were turbulent-both for Bitcoin and the global economy.

Central banks raised interest rates to fight inflation, putting pressure on risk assets. Bitcoin fell sharply. At the same time, several major crypto companies faced insolvency or collapsed entirely.

These events shook investor confidence. Yet the period also had positive outcomes:

• Regulatory frameworks became clearer
• Firms were required to implement stronger security standards
• Market structures became more transparent

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6. The Turning Point: Bitcoin ETFs and the Bridge to Traditional Finance (2024–2025)

The year 2024 marked a historic milestone: the approval of the first spot Bitcoin ETFs.

Why was this so significant?

For the first time, investors could buy Bitcoin through standard brokerage accounts-without wallets, private keys, or technical complexities. Barriers to entry fell dramatically, triggering a new wave of demand, especially from institutional investors.

This development contributed to Bitcoin reaching a new all-time high in 2025, surpassing 125,000 USD.

It was a powerful signal:

Bitcoin had transitioned from a speculative niche asset to a firmly established component of the global financial system.