Bitcoin Price (BTC)

The History of the Bitcoin Price for Aspiring Investors

If you have some spare change lying around but want to take it out from under your mattress and invest it somewhere you can make some profit, then you might be considering investing in Bitcoin. 

By now, you’ve probably checked out the Bitcoin price and had a little heart attack. 

How is it possible that a single Bitcoin is currently worth over $87,000 USD, or, for an Australian audience, over $138,000 AUD? 

To put the price into perspective, that’s enough for a lower-end Porche, a deposit on a 2-bedroom apartment in Melbourne or around 34,500 Chiko rolls at full retail. 

But if you don’t want to invest in property, you don’t trust yourself to stick to the speed limit in a Porsche and have nowhere to store an astronomical amount of Chiko rolls, then Bitcoin might be a great investment for you.  

About Bitcoin (BTC)

The Bitcoin price has skyrocketed since its creation in 2009. Part of what makes Bitcoin so exciting to investors is that no one knows the real story of who created it or why. It could have been Banksy, for all we know. 

The history of Bitcoin is intriguing, and there have been plenty of rumours about how Bitcoin came to be. The current historical narrative is that in October 2008, following the crash of the global investment bank, Lehman Brothers, and at the height of the Global Financial Crisis a whitepaper espousing the workings of a peer-to-peer digital cash system was released by a person or group who called themselves Satoshi Nakamoto. 

Who Created Bitcoin?

The mysterious Satoshi Nakamoto has been extensively tracked, and all communications have been analysed in depth by internet sleuths and journalists alike. Still, no conclusive evidence has pointed towards the actual creator who reportedly held on to 1 million Bitcoins but never spent any of them. 

Bitcoin was not the first attempt at a cryptocurrency, although it was the most successful, perhaps due to the timing of its release. It was released at the point when people had stopped trusting traditional banks and were fed up with being sold a lie on a mass scale. It was time for a banking revolution, and this was it.  

When Was Bitcoin Created?

In January 2009, Satoshi Nakamoto released Bitcoin software, which was also the start of blockchain technology and, as such, a momentous event in world history. As the software was downloaded by modern-day pioneers, it spread and created a network of node computers, thus creating blockchain as we know it.

Satoshi mined the first block of Bitcoins, harvesting the first reward of 50 coins. 

The specific details of how Bitcoin was mined are rather complex, so I’ll give you an analogy: It was the online version of the gold-mining rush, but instead of using a pick and shovel to dig through the dirt, Bitcoin miners would use a very powerful computer to search through data and solve complex mathematical equations. Once solved, the miner would be rewarded with a Bitcoin. They would then add it to the existing pool of Bitcoins on the blockchain. 

A quick note on blockchain technology for those playing along at home. Over time, Blockchain has become a decentralised record that exists digitally on many computers simultaneously. Anything placed on the blockchain can’t be hacked or tampered with because it’s an untouchable ledger that’s duplicated and verified by a network of thousands of computers called nodes. If one version gets messed with, the others instantly reject it. It’s like having a diary the entire internet watches and agrees on in real time.

How Does Bitcoin Work?

Bitcoin, like money, is an agreement. It exists because we say it does. Money itself is just bits of paper, plastic and metal. But as a society, we agree that it exists, and its value is XYZ, as controlled by central banks and authorities. Bitcoin is a decentralised form of currency that is managed on the peer-to-peer blockchain, verified by nodes in real-time and recorded in blocks on the blockchain ledger. 

Satoshi created a carefully considered economic environment in which only a limited number of Bitcoins would ever exist. This makes Bitcoins valuable because they are, by nature, scarce, like diamonds. In fact, it’s said that if real diamonds were available in abundance, their value would decrease. And so it’s the same for Bitcoins.

What Makes Bitcoin Unique?

Satoshi created 21 million Bitcoins. There will never be more, which is why they are now offered in parts for smaller transactions. What makes the currency unique is that it is decentralised, as in, no one person or organisation controls it. As it’s on the blockchain, it’s highly secure. Each transaction is encrypted and irreversible. Not even the authorities can access the blockchain, as opposed to banks, making it a popular currency for use by everyday netizens, criminals and those who love to challenge the system and try something new. 

How Much Bitcoin Is In Circulation?

The amount of Bitcoin available to be mined was originally limited to 21 million coins. As of March 2025, 19.66 million of these have been mined, with around 1.34 million left to be found, but when you take into account the hardware and electricity required to mine the Bitcoin, you’re looking at a global average of $60-$75k AUD to play. 

Many of the Bitcoins that were mined, however, are now considered dormant. There are many stories of those original pioneers who mined Bitcoin or were given some Bitcoins in a digital wallet in the early days who lost the password or accidentally threw out their hard drive when their mum kicked them out of the basement, only to realise they’d accidentally discarded millions of dollars worth of cryptocurrency. These tales of woe are, unfortunately, fairly common. 

Back in the day, this writer’s brother mined Bitcoin only to pay 0.99 Bitcoin for Subway for his workmates. In this day and age, this equates to over AUD $136,000 for lunch. I don’t care how much you like your workmates; that bill seems a little excessive. 

May 22 is also known as Bitcoin Pizza Day, as it marks the anniversary of the first real-world Bitcoin transaction that paved the way for future real-world transactions. In 2010, programmer Laszlo Hanyecz famously paid 10,000 BTC, now worth 1.38 billion dollars AUD, for two pizzas. If you’re reading this Laszlo, you’re welcome over for dinner anytime. Your shout. I’ll provide the riveting conversation. 

Why the flippancy with paying in Bitcoin? The Bitcoin price fluctuates over time as does money. Back in the day, it was basically worthless as no one would accept it as currency. Now, the floodgates are open, and people are buying houses and cars with them. Many retailers now accept Bitcoin as they know the likelihood of it increasing in value is high, and perhaps they want to hedge their bets across safe and high-risk investments as a superannuation fund does.  

Why Is the Bitcoin Price So Volatile?

The reasons for the fluctuations and volatile Bitcoin price are comparable to the rest of economics. I’m no economics major, but I’m married to one, plus I have access to the whole internet, so in summary, Bitcoin prices change due to: 

1. Supply and demand: 

As with any product, the scarcer it is; the more people want it, so the higher its value climbs. Put simply, a product or service is only worth what someone’s willing to pay for it. With a fixed supply and a high barrier to entry (thanks to the massive cost of mining Bitcoin yourself), most of us are left relying on the open market to get in.  

2. Regulatory news and uncertainty: 

As with the stock market, any announcements or legislation that affects its use will ripple through the market and cause panic and fear, meaning that people will dump their shares, leading to less scarcity and a lower price.

3. Market speculation: 

When the market begins to see more benefits, people jump at the chance to buy in, leading to greater scarcity and a higher price. 

4. Macro events: 

Economics has always been affected by world issues- wars, corporation closures, presidential elections, new technology inventions etc. Each macro event sends ripples through the economy, including Bitcoin price and the price of shares on the stock market.  

What is Bitcoin Mining?

People who mined Bitcoin originally had nothing to lose and a much lower cost to play. Computer-savvy people could mine it at home on their personal computers, with a much lower amount of electricity involved, and mining a single block would reward them with 50 Bitcoins! They downloaded the software created by Satoshi Nakamoto, solved mathematical equations, cracked open a block, added it to the blockchain, and released their reward of 50 Bitcoins. 

People didn’t even know they were onto a good thing at the time! As far as they knew, it was just smart-people maths games like Wordle, but more like Nerdle, which, as it happens, is a thing.

Many people mined Bitcoins on basic hardware until the network became overcrowded, and they needed to get more powerful GPU processors to compute the equations. 

Eventually, groups formed called Mining Pools, designed to pool resources like hardware and electricity and share winnings as in a lotto syndicate, as they mined day and night. 

As the Bitcoin price increased, it became more important to keep your investment safe, eventually leading to the ability to download a digital Bitcoin wallet that required a very secure password to open it, and it could not be accessed by the authorities, scammers, or your six-year-old who wanted a couple of dollars for an ice cream. Side note, many people lost these passwords, contributing to the number of dormant bitcoins and some extra wealth made by psychologists paid to listen to such tales of woe.  

These days, we also have the option to keep our investments secure using a crypto exchange wallet or a web wallet; however, these can be less secure. 

In 2014, Mt. Gox, a massive crypto exchange that handled 70% of all worldwide Bitcoin transactions, went bankrupt due to lax security, mishandling and hacking, taking 850,000 Bitcoins with it, claiming they were either missing or stolen. It’s still one of the biggest cautionary tales in crypto history and a good reason to ensure you’re using a highly secure crypto exchange. Many people are still fighting to get compensation, with others realising it’s gone forever and giving up the fight. 

How to Keep Your Bitcoin Safe

If you intend to invest, it’s important to consider how you’ll keep your cryptocurrency safe and secure. You don’t want to lose your password either, so keep it secure, enable two-factor authentication, keep your seed phrases (recovery key) offline and always avoid phishing emails and malware. Scammers will take you for all they can, so be on high alert. 

Below is a table that shows the pros and cons of each type of cryptocurrency security measure.  

Option	What it really means	Do you control your Bitcoin?	Security	Ease of use	Best for
Download Bitcoin software	Run your own full node (e.g. Bitcoin Core)	✅ Yes	✅ Very high	❌ Low	Tech-savvy users, privacy advocates
Download a digital wallet	Use a mobile, desktop, or hardware wallet	✅ Yes	✅ High	✅ Medium	Everyday users and long-term holders
Use an exchange wallet	Store BTC on a crypto exchange (e.g. CoinSpot)	❌ No	❌ Medium	✅ High	Beginners or short-term traders
Use a web wallet or browser extension	Access via the internet or browser plug-in	⚠️ Sometimes	⚠️ Varies	✅ High	Convenience seekers, casual users

What is Bitcoin Halving?

Satoshi was a smart enigma and designed the system to control inflation and prolong the availability of new bitcoins. They did this by building into it a programmed event called Bitcoin Halving. 

Approximately four years, or to be more specific, for every 210,000 mined blocks, the system reduces the reward miners get by 50%. 

This means that if you want to get into mining Bitcoin now, you won’t receive anywhere near as much today as you would have in 2009 when the reward was 50 BTC. 

When Is the Next Bitcoin Halving?

The first Bitcoin halving occurred in 2012, and miners received 25 BTC. 

In 2016 the second halving of Bitcoin delivered 12.5 per mined block. 

The 3rd halving in 2020 reduced to 6.25. 

The 4th halving is expected around April 2025 and will reward 3.125 and the 5th halving is expected around 2028, returning 1.5625 BTC and so on until all the bitcoins have been mined. 

The penultimate halving is expected to occur around the year 2136 and return approximately 0.00000001 BTC, also known as one satoshi, the smallest possible unit of Bitcoin. 

The final halving will happen when all 21 million Bitcoins have been mined, around 2140 and will reward 0 BTN. But by then, we’ll all be orbiting the solar system in our jet-powered houses and too busy collecting Saturn’s valuable moon rocks to care. They’re great for the skin. 

Does Bitcoin Halving Affect BTC’s Price?

Halving affects the Bitcoin price through the scarcity principle. The less Bitcoins entering the market, the more scarce they become. But if the demand for them is still high, it creates a higher asking value. 

What could crash the Bitcoin price? I hear you asking. At this point, the only thing that could reduce the price of Bitcoin, as I see it, is if it suddenly becomes uncool, like how the phrase ‘on fleek’ was tossed out as soon as your parents started using it. So what could reduce the popularity of Bitcoin is if it became grossly uncool for some reason, like if Taylor Swift said Bitcoin ate her baby, or Bitcoin zombies started hacking into brains to get to the NeuraLink because that’s where our crypto wallets are now kept. 

There are a few other highly speculative reasons the Bitcoin price could significantly crash: 

• If a government crackdown made it illegal or way too highly taxed. In that case, it might enter a black market phase (like in prohibition) or die out altogether. 
• Something better might come along, making it redundant, as Facebook did to MySpace (although no subsequent cryptocurrencies have been as successful as Bitcoin so far, still, it could happen). This is why whispers make ripples. 
• And in a bit of a sci-fi twist, our home robots or smart fridges might all simultaneously be reprogrammed by a virus created by an evil supervillain with a soft cat. The robots might hack the blockchain, change the ledger and thus prove the crypto experiment to be non-secure. In which case, people might withdraw their money, crash the system and put their wads of paper back under the mattress- if it’s even worth anything after the subsequent revolt and revolution.  

View our Bitcoin Price Prediction section to know how the price of bitcoin could vary from now till 2030.

Bitcoin Tokenomics

Bitcoin tokenomics is fascinating isn’t it? Did you know that the word ‘tokenomics’ was only invented as a mashup around 2015? 

It’s used to explain the economics of the cryptocurrency token world, created around the launch of Ethereum, and even though Bitcoin doesn’t use tokens, it’s been adopted to explain the economics of how the crypto currency works. 

How Do Bitcoin Transactions Work?

So how does it work? What happens when we make a Bitcoin transaction? This bit is somewhat dry, so bare with me while I attempt to make accounting sound like collecting coins in Mario Land. 

Let’s say you’re paying your mate back for those $20 pale ales from the night before. He sends you his crypto wallet ID, which is like a bank account number, but for Bitcoin.

You open your wallet app, enter his wallet ID, type in the amount and hit send.
Your wallet signs the transaction with your private key (basically your secret password), proving you’re the rightful owner of those coins.

The transaction is then broadcast to the Bitcoin network, where thousands of computers around the world go, ‘Alright, let’s check this out.’

They verify that you haven’t already spent those coins elsewhere, and once everything checks out, the transaction is confirmed and added to the blockchain (Bitcoin’s public record of all transactions).

A few moments later, your mate checks his wallet, sees the Bitcoin has arrived and raises a pint to your digital generosity.

And the rest, as they say, might induce a stinging hangover. 

Still have questions? Of course, you do, this is Bitcoin! Below are some rapid-fire answers to the most common questions.

Bitcoin FAQs

Note: This information is for educational purposes only and should not be considered financial advice. Consult with a financial advisor to determine if investing in Bitcoin aligns with your financial goals and risk profile.