Bitcoin celebrates the 11th anniversary of the first $1 in history

On February 10, 2011, 11 years ago today, the price of Bitcoin (BTC) equaled the US dollar for the first time, more than two years after the first Bitcoin blockchain was created in early 2009.

In the early years, there were only two ways to earn bitcoin: self-mining, or arranging peer-to-peer (P2P) transactions through a forum like Bitcointalk, where Satoshi Nakamoto created bitcoin to have discussions about bitcoin.

Back then, P2P transactions were risky because they required trust between the transaction parties, but the stakes weren’t as high as they are today because each bitcoin was worth next to nothing. Bitcoin initially traded for $0 and peaked at 39 cents in early 2010.

Free 5 bitcoins

By 2010, interest in Bitcoin had grown and new methods of earning BTC had emerged. Core developer Gavin Andresen created a Bitcoin “Faucet,” a website that gives anyone with a Bitcoin address 5 BTC for free. It was then that the first bitcoin exchanges appeared.

Bitcoin price chart at $1

Announced on the Bitcointalk forums in 2010 and launched the same year, the first “real” bitcoin exchange, Bitcoin Market, offers a floating exchange rate for bitcoin. Before that, there was no bitcoin market and therefore no way to create a floating market assessment. Buyers can buy bitcoins by sending US dollars to other users via PayPal, while Bitcoin Market holds the seller’s bitcoins in escrow until the seller receives their funds.

The most notable exchange to emerge in 2010 was Mt. Gox, which is based in Japan but was hacked in 2014 and severely impacted many users. It finally went bankrupt not long after.

The first real bitcoin exchanges in 2011

In 2011, several new bitcoin exchanges appeared. VirWoX, an exchange that buys and sells Linden Dollars, the currency used in the popular virtual reality game Second Life, has begun facilitating transactions between Linden Dollars and Bitcoin.

Tradehill, another exchange, allows users to buy bitcoin “instantly” instead of sending limit orders to their exchange. It allows users to send money via wire transfer and various payment processors.

After hitting $1, bitcoin price surged over the next three months, jumping 2,960% to peak at $29.6 on June 7th. In what has emerged as a familiar pattern to date, a sharp market downturn has caused Bitcoin price to bottom at $2.05 in mid-November 2011.

Those lucky or persistent managed to buy bitcoin for $1 and trying to hold it has since reaped big profits. It is easy to calculate the return between the market price throughout Bitcoin’s history and the initial $1 capital fee. It hit an all-time high (ATH) of $69,000 on November 10, 2021.

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