How Much Was Bitcoin In 2009 - Finding The Origins Of Crypto

You may wonder “how much was Bitcoin in 2009,” the exact year that the popular cryptocurrency was founded. For the majority of the year 2009, Bitcoin was worth less than one cent (USD). Though Bitcoin is currently valued at over $9,300 per coin, it did not originally sell at such a high value. Keep reading to learn more about the question, “How much was Bitcoin in 2009?” and about how the world’s biggest cryptocurrency gained popularity and value.

Why Was Bitcoin Created?

To fully understand the answer to the question, “How much was Bitcoin in 2009?” you’ll need to also know why Bitcoin was created in the first place. In 2009, Bitcoin was created by an unknown person or group operating under the pseudonym Satoshi Nakamoto. The creation of this cryptocurrency was in response to the 2008 global economic crisis, when the instability of traditional currencies and banking created a new need for alternative assets and investments that were not backed by a central government or banking organization. 

Bitcoin was created as an alternative investment and banking solution in the wake of this financial crisis — the creator(s) of this digital currency sought to make an unregulated currency that would allow users to have direct access to their monetary assets and transactions without third-party interventions. This is meant to make the processes of buying, selling, and holding Bitcoin assets much more transparent and accessible than with traditional fiat currencies, which require banks and other third parties to participate in these processes. 

How Does Bitcoin Gain and Retain Value?

Bitcoin does not derive its value in the same way that traditional fiat currencies do. Much like gold (an asset that Bitcoin is frequently compared to), this cryptocurrency gains and retains value through the scarcity of its supply. Embedded within Bitcoin’s code is a 21 million unit limit, meaning that there will only ever be 21 million Bitcoins available to be mined unless the line of code which dictates this scarcity was ever changed. Bitcoin's code also includes built-in scarcity measures, referred to as Bitcoin halvings, that systematically reduce the amount of available Bitcoin for every 210,000 units mined.  

Bitcoin’s dependence upon scarcity for its value makes it a deflationary asset, which cryptocurrency devotees greatly appreciate — this currency was created as a “safe-haven” asset in the midst of a global economic crisis.   

How Much was Bitcoin Worth in 2009?

During the early months of 2009, Bitcoin was valued at less than one cent per unit, and it wasn’t until July of 2010 that Bitcoin was able to reach $0.08 per unit. 

As you now understand, Bitcoin’s value comes from the scarcity of its supply — as more units are mined from the 21 million unit cap, the total available supply of Bitcoin is decreased, making each available unit more valuable as more are mined from this finite supply. Therefore, when Bitcoin was first launched in January 2009, no units had been mined yet. Its available supply was at its maximum (21 million units) and would not begin to gain a higher value until it gained more traction and use.  

When Did Bitcoin’s Value Finally Increase?

Across the digital currency’s 14 year history, Bitcoin has experienced many fluctuations in price. However, this was not necessarily the case during the earliest years of Bitcoin’s existence. It took until the year 2010 for Bitcoin’s price to reach 8 cents per unit. At the beginning of 2013, Bitcoin was worth only $13.50 per unit, a major increase from 2010 but still relatively low compared to its current valuation. However, it was during 2013 that Bitcoin saw much more intense fluctuations in value: in November 2013 alone, Bitcoin’s price rose from $200 to $1,075 due to the expansion of mining operations in China. 

What Is the Highest Value that Bitcoin Has Ever Reached?

Bitcoin’s price fluctuated greatly between 2014 and 2017 as it earned more global attention, reaching both historic highs and lows that the cryptocurrency had never experienced. 

Bitcoin's highest value was on November 10th, 2021, when the cryptocurrency reached $68,000. Bitcoin saw numerous ups and downs throughout 2021, including a low of $30,000 in July. Bitcoin can rapidly increase and decrease in value at any moment. Experts predict that Bitcoin’s value will increase to $100,000 during 2022. 

Will Bitcoin’s Value Ever Fall to its 2009 Price?

If the answer to “How much was Bitcoin in 2009?” shocked you, you may also wonder if Bitcoin’s value could ever reach those lows again. Given its current value of about $47,000 per unit, it would be devastating to Bitcoin holders and miners for its value to fall to less than 10 cents per unit. Cryptocurrency skeptics often refute claims of Bitcoin’s “safe haven” status due to its volatility, as demonstrated in the extreme price fluctuations experienced during the last months of 2017 and throughout 2021. 

The Future of Cryptocurrency

While Bitcoin has had many ups and downs over the past few years, it is projected to increase throughout 2022 significantly. Although Bitcoin is unpredictable, it is advised that investors keep their Bitcoin as it will continue to grow in the future. 

INCREASED REGULATION

There has been increased interest by President Biden and other government officials to have more regulations for cryptocurrency. While the unregulated, decentralized market is what draws many individuals to invest in crypto, regulatory guidance could help protect investors from potential scams. In addition, these regulations could stop cryptocurrency crime and tax evasion, requiring crypto companies that facilitate trades to report tax information to the IRS starting in 2024. However, this will make tax compliance easier for investors. Another proposed regulation is stablecoin regulation. The legislation would classify stablecoin issuers as banks, requiring them to have the same oversight to protect consumers. Advanced traders usually use Stablecoins; however, the Biden administration report hints at them becoming a more mainstream digital payment system. An additional potential advancement is in crypto ETFs. These would make it harder to use crypto for illicit activities and tax evasion. While ETFs are not available in the U.S., they may offer a way for investors to obtain cryptocurrency without buying directly from an exchange in the future.     

BITCOIN AS A FORM OF PAYMENT

With further regulation of crypto, it could become a more normalized form of currency. Cryptocurrencies like Bitcoin can have significant benefits for businesses all over the world. Many cities, such as Memphis, TN, have seen a tremendous increase in businesses accepting cryptocurrency. 

Due to their low transaction fees, offering Bitcoin is an optimal business move for establishments. With credit and debit, there is usually at least a three percent transaction fee and many hidden fees. Bitcoin can reduce additional fees to less than one percent. Additionally, Bitcoin transactions are much faster than those with credit and debit. While the traditional currency may take several days to complete a transaction, Bitcoin is nearly instant. 

Another way Bitcoin can be helpful for businesses is due to its fraud protection. While traditional forms of payment usually require an individual to disclose personal information, Bitcoin does not need this. Because Bitcoin users use a unique Bitcoin address to access their wallet, that is all required to make purchases with the cryptocurrency. 

Bitcoin is a global, universal form of currency, making foreign payments much more manageable. Using other currencies to make foreign purchases can exponentially increase transaction costs, while crypto will not. Accepting crypto is an intelligent business strategy, specifically for online stores, as this opens up the door to customers in other countries.      

Looking for More Answers to Your Bitcoin Questions? Learn More with Pelicoin.

Pelicoin is the leading cryptocurrency ATM service in the Gulf South. With our easy-to-use, secure crypto ATMs, you can gain in-person access to your Bitcoin, Litecoin, or Ethereum assets at one of our 30+ locations. Visit our blog to read up on the latest Bitcoin news and to learn more about the latest trends in the cryptocurrency scene. For more information about Pelicoin’s crypto ATMs, contact us today by emailing support@pelicoin.com or by calling 855-PELICOIN.