Bitcoin (BTC) was the first digital currency and remains the most valuable and widely recognized digital asset today. Conceptually existing for over 40 years, Bitcoin made it a reality in 2009, and its journey since has been both volatile and revolutionary.
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Key Moments in Bitcoin’s History
1983: American cryptographer David Chaum, the “godfather of cryptocurrency,” proposed eCash, the idea of anonymous electronic money. He launched Digicash in 1989, but failed to achieve widespread adoption.
2008: An unknown person or persons going by the name Satoshi Nakamoto published Bitcoin: A Peer-to-Peer Electronic Cash System.
2009: Bitcoin launched, introducing the world to decentralized digital currency. That same year, New Liberty Standard established the initial exchange rate, a pivotal milestone that transformed cryptocurrency from a theoretical concept to a tradable asset.
2010: The first real-world Bitcoin transaction occurred on May 22, 2010, now celebrated by Bitcoin enthusiasts as Bitcoin Pizza Day.
2011: Bitcoin crossed the $1 threshold, piquing the interest of speculators and investors. It also set the stage for the first major pricing bubble and subsequent crash. While both events dramatically changed Bitcoin’s narrative, it also set the stage for its resilient reputation.
2013: Bitcoin was named the best investment of the year by Forbes.
2014: Bloomberg shifted the narrative, proclaiming Bitcoin the year’s worst investment.
2020: PayPal announces their support for cryptocurrencies, opening Bitcoin to millions more users.
2021: The Securities and Exchange Commission (SEC) approved ProShares Bitcoin Strategy (ticker: BITO), the first U.S. Bitcoin futures exchange-traded fund (ETF).
2022: FTX, the leading cryptocurrency exchange by trading volume, declared bankruptcy.
2024: SEC approved 11 spot Bitcoin ETFs.
2024: SEC gave final approval for spot Ether (ETH) ETFs to start trading, further legitimizing the asset class.
2025: President Donald Trump signed into law the GENIUS Act, which set regulatory standards for stablecoins. Trump also signed into law an order banning the Federal Reserve from issuing a digital currency; another law creating a market framework for crypto, paving the way for its use in 401(k) plans; and an executive order to establish a national strategic bitcoin reserve.
2025: The U.S. became the leading governmental holder of Bitcoin, with current holdings valued at more than $20 billion.
Bitcoin’s Beginnings
Writing under a pseudonym, Bitcoin’s enigmatic creator, Satoshi Nakamoto, introduced the blockchain system in a 2008 white paper. A blockchain, the backbone of the cryptocurrency market, is a decentralized ledger of transactions replicated and distributed across a network of computer systems, ensuring security, transparency and seamless immutability. It is the revolutionary system that underpins the cryptocurrency market and allows any person with internet access to make financial transactions independent of banks, financial firms and the government. Nakamoto formally launched Bitcoin on Jan. 3, 2009, when he mined the first Bitcoin block, known as the Genesis Block or Block 0. Nakamoto’s true identity has never been verified.
Bitcoin Core Concepts
— Bitcoin units. Each Bitcoin is divisible to eight decimal places. A millibitcoin (mBTC) is 1/1,000th of a Bitcoin. The smallest unit is a satoshi (sat), which is 1/100,000,000th of a Bitcoin.
— Transaction. A computer directive styled as “payer X sends Y Bitcoin to receiver Z.”
— Block. A block is a group of Bitcoin transactions over a certain period. Transactions are verified by Bitcoin “miners.”
— Mining. A process where individuals or groups (“miners”) solve complex calculations to validate transactions and create new blocks. Miners are financially rewarded for their work with newly minted BTC.
— Block hash. Mining activities include a record-keeping service ensuring the blockchain remains consistent, complete and unalterable. The hashes validate available Bitcoin and provide a uniform mining reward.
— Blockchain. A continuous, transparent ledger where each block transaction is seamlessly linked to the previous one. This public chain enables both Bitcoin’s existence and usability.
— Blockchain address. A sequence of 25 to 34 alphanumeric characters used to receive Bitcoin while concealing personally identifiable information. While cryptocurrency exchanges may be required to collect personal data, each transaction can use a different Bitcoin address to enhance privacy.
— Keys. Credentials, similar to a safe-deposit box, that allow access to Bitcoin assets. If a party loses their key, the Bitcoin becomes inaccessible and effectively worthless. According to Chainalysis, a blockchain analytics firm, roughly 20% of Bitcoins have been lost due to misplaced private keys.
— Public keys. This is the technology used to encrypt and decrypt transactions. It is “one way,” allowing transactions to be unlocked but not reversed. This key enables the blockchain to be uninterrupted.
— Private keys. A unique passcode used by transacting parties to initiate a Bitcoin transaction. To spend Bitcoin, one must know their own private key and digitally sign the transaction. The party’s signature is verified by the public key without revealing the private key. Private keys are invaluable and must be protected. If a party loses their key, the Bitcoin becomes inaccessible and effectively worthless.
— Wallet. A digital collection of private keys necessary to managing and using Bitcoin.
— Full clients. A wallet that contains a complete copy of the entire blockchain, making it the safest form of storage besides offline or “cold storage.”
— Lightweight clients. A wallet that holds a partial version of the blockchain, allowing it to be used on mobile devices. Since it does not include the entire blockchain, users must trust full wallet intermediaries for verification.
Bitcoin Adoption
Bitcoin supporters point out that an increasing number of institutions, countries and platforms are accepting the digital currency. In the U.S., its primary value is as an investment.
While some countries (notably China, India and Saudi Arabia), have banned cryptocurrency mining and trading, many others are fully embracing it:
— Cryptocurrency has been used to fund both sides of the Russia-Ukraine conflict. Crypto is prized due to its decentralized nature, where quick transactions are useful to get humanitarian aid and military support funding into conflict zones.
— El Salvador, battling severe economic issues and a weak national economy, became the first country to adopt Bitcoin as legal tender in 2021.
— Iran has effectively used Bitcoin to bypass U.S. financial sanctions. Hamas is believed to have used $165 million in crypto transactions to fund the surprise attack on Israel on Oct. 7, 2023.
— The U.S. became the largest state owner of Bitcoin in 2025, with reserves estimated at more than $20 billion.
With new strides in regulatory acceptance, major institutions and investors are stepping into the BTC ring. The Millennium Management hedge fund led the charge with $2.6 billion in Bitcoin ETFs. The United Arab Emirates has enabled significant traction for other fund managers to participate, including Abu Dhabi’s sovereign wealth fund’s $436 million investment. Goldman Sachs was an important tipping point for many investors with their $1.58 billion. But, Jane Street Group has really raised the martini glasses with their $2.8 billion treasure chest, dramatically signaling institutional confidence.
Bitcoin Controversies
When money moves hard and fast, drama tends to ensue and unintended consequences arise.
— Crypto exchange FTX. The most dramatic chapter in Bitcoin’s history was the rapid rise and subsequent collapse of crypto exchange FTX. Led by Sam Bankman-Fried, FTX operated alongside Alameda Research, another company founded by SBF and managed by Caroline Ellison. FTX expanded aggressively through high-profile acquisitions and splashy marketing campaigns. At FTX’s peak, SBF was ranked the 41st-richest person on the Forbes 400 list. In November 2022, CoinDesk published an article detailing FTX’s precarious financial situation, lack of accounting oversight and potential criminal use of customer assets. Panicked customers created an $8 billion liquidity shortfall. Coupled with the collapse of the FTT digital token, crucial to Alameda Research’s operations, FTX ultimately filed for bankruptcy. SBF was arrested and indicted in 2022 by the U.S. District Court on multiple criminal charges, including money laundering, wire fraud, campaign finance violations and securities fraud. In November 2023, SBF was convicted of seven federal counts of fraud and conspiracy. On March 28, 2024, he was sentenced to 25 years in federal prison and ordered to forfeit $11.02 billion. Currently serving his sentence at the Metropolitan Detention Center in Brooklyn, New York, SBF’s conviction is on appeal and his hearing is scheduled for Nov. 3.
— Climate impact. Bitcoin has faced heavy scrutiny for its negative climate impact. The mining process is highly dependent on fossil fuels, electricity consumption and significant water volume. Bitcoin’s price is highly correlated to its energy use, so as its popularity has risen, its climate impact has risen accordingly. The United Nations published a study during the 2020-21 period that demonstrated that the global Bitcoin mining network’s electricity consumption exceeded the entire country of Pakistan with its population of 253 million people. It is estimated that almost 4 billion trees were needed to offset the CO2 emissions, comparable to 7% of the Amazon rainforest. Fortunately, the industry is leaning into technology designed to reduce their oppressive footprint. The Cambridge Bitcoin Electricity Consumption Index (CBECI) provides estimates of the greenhouse gas emissions associated with Bitcoin, providing real-time usage.
— Rising impact of lost keys. As the price of Bitcoin continues to rise, disorganized owners have often found themselves at their wit’s end trying to access their accounts when keys have been lost. A 2021 Finbold study showed that 39.7% of individuals had forgotten their passwords. An enduring case involves James Howell, a Welsh computer engineer whose ex-partner mistakenly disposed of a computer hard drive containing 8,000 Bitcoins that is believed to have been buried in a local landfill. Given that the current value of the wallet in September 2025 hovers around $875 million, Howell has secured global investors to help him purchase the site after the Newport City Council announced that the landfill is due to be closed in 2025 or 2026. The Council has argued that their environmental permits precluded them from approving excavation searches.
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Bitcoin Price Trajectory
Nakamoto initially capped the Bitcoin supply at 21 million coins. As of this writing, there were 19,920,864 BTC in circulation with just 5.14% left to mine.
Bitcoin had a price of zero when it was introduced in 2009.
The first real-world Bitcoin transaction occurred on May 22, 2010, now celebrated by Bitcoin enthusiasts as Bitcoin Pizza Day. Laszlo Hanyecz spent 10,000 BTC to have two Papa John’s pizzas delivered, valued at approximately $25. The transaction continues to be tracked as the Bitcoin Pizza Index, and the Bitcoin used to purchase the pizzas would now be worth about $975 million.
The cryptocurrency’s first significant price increase occurred in October 2010, when the value of a single Bitcoin started moving past its long-flat price of less than 10 cents. It took until 2011 for BTC to break the $1 mark, and then it surged to $29.60. However, in that same year, Nakamoto became a digital ghost. The Bitcoin founder’s decentralized vision meant that there was no central authority, server, storage or administrator. This uncertainty around Nakamoto’s absence caused Bitcoin’s price to fall.
The COVID-19 pandemic shut down the economy in 2020. As cryptocurrency often experiences significant moves due to consumer sentiment, public uneasiness over governmental policy actions accelerated upward price movement, and BTC opened the year over $7,000.
2021 was a year for big advances — BTC surpassed $40,000 in January and peaked for the year at $64,895 in April. By November, it was touching $69,000, but ended the year around $46,000 as new COVID variants continued unabated.
In 2022, the markets experienced a “crypto winter,” and Bitcoin’s value plunged more than 70%. Bitcoin thrives on volatility, a phenomenon partly explained by the Gartner Hype Cycle, which is common among new and innovative technologies. This cycle includes five stages: the innovation trigger, peak of inflated expectations, trough of disillusionment, slope of enlightenment and plateau of productivity. Many people have gained and lost substantial fortunes with Bitcoin, leading eight Nobel Prize winners in economic sciences to compare it to the oft-cited Dutch tulip mania in the 1600s. True to its enduring reputation, Bitcoin rebounded.
On April 19, 2024, Bitcoin experienced an event known as “halving.” This unique deflationary mechanism, occurring roughly every four years, reduces the rate at which new coins are created, enhancing Bitcoin’s scarcity. This halving reduced the mining reward from 6.25 BTC per block to 3.125 BTC. Historically, halvings correlate with rising BTC prices, although past performance does not guarantee future results. The next halving is expected in 2028, and the process will continue until 2040, when the total Bitcoin supply reaches its cap of 21 million. At that point, the mining reward will drop to just one satoshi, the smallest unit of Bitcoin, which cannot be further divided.
Bitcoin continues to be influenced by global economic conditions, regulatory changes and evolving market demand. Bitcoin’s price rose to its all-time high ($123,071.07) on Aug. 13, 2025, on anticipation of coming interest rate cuts from the Federal Reserve. Since then, the digital currency has erased its summer gains and sits at around $110,000 as of Sept. 2.
Regulatory Outlook
With Bitcoin’s increasing values and more spot ETFs on the horizon, regulators have continued to increase watchful eyes on the industry.
Digital currencies are subject to multiple tax challenges that can complicate tax compliance, including difficulties in tracking cost basis, short-term capital gains classification and international tax law coming into play. As a result, Bitcoin investors should review their portfolios with their CPA or other tax specialist to ensure that they are reporting these assets properly to the IRS.
The U.S. Securities and Exchange Commission’s regulatory activity had been on the rise until July 2024, when the U.S. Supreme Court unexpectedly ruled against the Chevron doctrine, a 40-year precedent on the power of federal agencies, including the SEC. With the sweeping new ruling in the mix, crypto regulations seemed to be on hold.
However, in light of President Donald Trump’s more crypto-friendly administration, SEC Chair Paul Atkins unveiled a new project, dubbed “Project Crypto,” that would “be the SEC’s north star in aiding President Trump in his historic efforts to make America the ‘crypto capital of the world.'”
Looking Ahead
With headline-popping news happening so frequently, investors are eager to watch the future of digital currencies.
On July 18, Trump signed the GENIUS Act into law. The bill provides a legal framework surrounding the issuance and regulation of “payment stablecoins” that are defined as a “digital asset.” The flurry of “Crypto Week” activity in July also included the Clarity Act, which defines digital assets more clearly and splits regulatory authority between the SEC and the Commodity Futures Trading Commission. The CFTC would oversee spot crypto markets, which may alleviate some concerns crypto investors have had over fuzzy regulatory boundaries. And by all accounts, the CFTC is working to quickly bring crypto into the mainstream financial markets via an initiative called “Crypto Sprint.”
This action comes on the heels of Trump signing the executive order to create a national strategic bitcoin reserve. Three states have launched their own Bitcoin reserves (Texas, New Hampshire and Arizona) and 13 more states have put legislation forward to establish their own. U.S. Senator Cynthia Lummis (R-Wyo.) has introduced a Bitcoin reserve bill that would include the U.S. Treasury investing $76 billion in Bitcoin over five years to monetize the asset side of the nation’s balance sheet and provide long-term inflation hedging.
Of course, beyond such major headlines, the simple fact of such major institutional money flowing into this alternative asset class potentially bodes well. However, like all investments, risk is always present. It will be important for investors to watch the outcome of the SEC’s actions and policies, as well as the impact of U.S. tariffs and subsequent Fed actions.
As for Nakamoto’s individual holdings, they are believed to total 1,125,150 BTC. At Bitcoin’s current price, Nakamoto would have digital assets valued at about $119,439,341,873. Significant wealth concentrated in a speculative investment can be problematic both for the living as well as their heirs. As time continues to pass, Nakamoto’s estate planning (or lack thereof) could lead to unexpected developments.
Even after more than 15 years, Bitcoin’s journey is still unfolding. Marked by both promise and uncertainly, its story captivates a global audience, and its next chapters are sure to be just as intriguing.
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The History of Bitcoin originally appeared on usnews.com
Update 09/02/25: This story was previously published at an earlier date and has been updated with new information.
