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Exploring Bitcoin: From Bitcoin Pizza Day to Bitcoin Halving

Exploring Bitcoin: From Bitcoin Pizza Day to Bitcoin Halving

2024-02-02 | 5m
Bitcoin has been the most popular and widely traded cryptocurrency for over a decade, and despite skeptics waiting for the downfall of crypto, the famous coin's value reached an astonishing US$69,000 in 2021, sparking renewed debate about its worth.
Crypto enthusiasts have had a tough time in 2022, with Bitcoin and Ethereum among the cryptocurrencies hitting hard. BTC, the world's largest cryptocurrency, lost around 65% of its market value over the past year. In July, Bitcoin rose an average of 0.39 to about $31,000. However, the start of 2023 brought signs of recovery to the crypto world, with cryptocurrencies showing strength. BTC has risen to good levels in October, November, and December, indicating a strong recovery.

What is Bitcoin?

In 2009, an individual or group under the pseudonym Satoshi Nakamoto introduced Bitcoin, often denoted by its ticker symbol BTC. Bitcoin was created as a decentralized digital currency that operates on a peer-to-peer network. This innovative technology allows users to transact directly with each other, eliminating the need for intermediaries. Bitcoin's underlying technology is based on blockchain, a public ledger that records all transactions across a network of computers.
When discussing Bitcoin's role as a currency, there are several characteristics it must exhibit to be considered legitimate. These include scarcity, divisibility, acceptability, portability, durability, and uniformity. As a digital currency, Bitcoin easily meets the requirements for portability, durability, and uniformity. Additionally, it is divisible down to one millionth of a Bitcoin (one Satoshi). Therefore, Bitcoin's value is determined by its scarcity and acceptability.
Bitcoin's first bull run occurred in 2013, almost five years after its inception. This marked the beginning of mass adoption of the digital currency. With the growing need for decentralization in recent years, Bitcoin's unregulated nature has made it even more attractive. As more people accept Bitcoin, demand for it increases. However, Bitcoin mining can be expensive, which limits its supply. Therefore, scarcity is the key driver of Bitcoin's value.

From Pizza Day to Mainstream Adoption

Bitcoin's journey has been truly impressive. Initially worth nothing when the pseudonymous Nakamoto Satoshi published the Bitcoin whitepaper, it barely changed hands above zero in the next five years. Did you know that there is a Bitcoin Pizza Day celebrated every year on May 22? It marks the first-ever commercial transaction made with Bitcoin when a Florida man paid for his two delivered pizzas with 10,000 BTC in 2010.
It took Bitcoin three more years to climb to the US$1,000 mark, leading to the installation of the first Bitcoin ATM in Vancouver. However, the rally was short-lived, and many predicted the fall of Bitcoin and referred to it as a scam. But the 2017 upsurge proved them wrong. Bitcoin's price exceeded US$20,000, representing a return of 20X in less than 12 months and a market capitalization of over US$1 billion dollars. This captured the attention of mainstream media, encouraging more retail investors to trade and hold BTC.
Click here to see how Bitget celebrated Bitcoin Pizza Day this year.

Bitcoin Halving and How It Works

Bitcoin halving occurs every four years, and it is when the reward for Bitcoin mining is halved. The aim behind this policy was to maintain scarcity and counteract inflation by reducing the pace of Bitcoin issuance. As per the theory, if the demand for Bitcoin remains the same, the price will increase due to the reduced pace of Bitcoin issuance.
Bitcoin transactions are verified by a decentralized network of validators through a process called mining. The validators are rewarded with 6.25 BTC for being the first to use complex math to add a group of transactions to the Bitcoin blockchain as part of its proof-of-work mechanism. At current Bitcoin prices, this reward is worth around $193,750, which is a decent incentive for miners to keep adding blocks of transactions to the blockchain smoothly.
These blocks of transactions are added approximately every 10 minutes, and the Bitcoin code mandates that the reward for miners is reduced by half after every 210,000 blocks are created. This halving event occurs roughly every four years and is often accompanied by heightened Bitcoin price volatility.
The next Bitcoin Halving is near. Get ready with Bitcoin Halving 2024 with our latest articles:
Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.
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