Every cryptocurrency has its own charm and history. Each has its own profitability and risks. But there is one that has been around since the very beginning and is synonymous with cryptocurrencies in the public mind. That is Bitcoin. Why should you not forget about this stalwart, and how can you take advantage of the approaching halving effect? You will find out in this article.
Article content – Bitcoin:
- The history of Bitcoin and the legend of Satoshi Nakamoto
- How did Bitcoin go from being a new player to a giant in the world of finance?
- What is Halving – Bitcoin's Main Accelerator?
- Halving 2024 – Can you still jump on the rising wave?
- Bitcoin in an uncertain world – How the crisis is changing the established rules
- Bitcoin is winning and showing that we have to reckon with it
The history of Bitcoin and the legend of Satoshi Nakamoto
Bitcoin is one of the few cryptocurrencies that has its own legend. It concerns its creation and its founder, who is now almost legendary: Satoshi Nakamoto. Who was this man? And what do we actually know about him?
Practically nothing. He could have been a gifted individual, but also a group of digital pioneers who wanted to change the world. Conspiracy theories, on the other hand, talk about the involvement of secret services. Whatever the case, all we know is that during Halloween 2008, a nine-page PDF from an unknown author appeared in an email community. It described a new type of currency that would function digitally and without central supervision. It may sound like science fiction, but the document also contained practical instructions on how to launch such a digital currency and ensure its security. A vision was born that no one could stop.
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How did Bitcoin go from being a new player to a giant in the world of finance?
The beginnings of Bitcoin were slow and uncertain. It took several years for cryptocurrencies to become popular and prove that they had a chance of surviving in the future. In the meantime, Bitcoin still faced several obstacles on its way to world domination. Let’s take a closer look at its trajectory.
In 2011, 1 Bitcoin was worth only 13 Czech korunas. That would only buy you a discounted Fidorka chocolate bar. In 2013, however, it rose to 13,000 CZK. At that time, you could buy an average laptop for that amount. In 2017, Bitcoin reached its first peak – 380,000 CZK. If a user had sold 1 Bitcoin at that time, they could have bought a new Škoda Fabia.
From there, Bitcoin’s journey was still a bit bumpy, but it paid off. Those who didn’t sell and kept their coins could rejoice after 2024. Today, 1 Bitcoin is worth over 2 million CZK. That’s the price of a small apartment in Ústí nad Labem. And that’s a big difference from the beginning, when you could only buy a Fidorka chocolate bar.
There were certainly more reasons for this success. We could mention the emergence of new cryptocurrencies, the transformation of the financial world, and much more, but one reason is crucial. And that is halving.
What is Halving – Bitcoin’s Main Accelerator?
Bitcoin has a big advantage over traditional currencies. It can perform something called “halving.” The name refers to a real event that is planned in advance and users can prepare for it. During halving, the reward for mining 1 Bitcoin block is reduced by half.
Due to various mechanisms (such as the departure of inefficient miners), there is a drastic increase in price approximately one year after halving. Bitcoin has experienced four halvings so far, each of which has taken it to a new level. The first halving in 2012 caused a 9,200% appreciation of 1 BTC. The second halving (2016) caused a 3,000% increase. During the third halving (2020), the increase slowed to 650%, but that’s nothing to be sad about, because it still meant a profit of $56,000 per 1 BTC. That’s more than after the second halving (when the price rose by $19,000).
As you can see, the percentage increase after halving decreases each time, but it still exceeds the earnings of the previous halving because the price of 1 BTC is much higher each time. And this will likely continue to be the case in the future.
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Halving 2024 – Can you still jump on the rising wave?
Now, of course, you are interested in how you can take advantage of this effect in practice. The last halving took place in April 2024, less than a year and a half ago. According to estimates, we are therefore right in the middle of a rising wave. In the last year alone, the value of Bitcoin has risen by 88%. Although there are fluctuations, the trajectory seems to be decisive. According to some, the price will rise this year from the current $111,000 to a limit value of $250,000. However, everything may not be as rosy as it seems.
Bitcoin in an uncertain world – How the crisis is changing the established rules
We live in a rapidly changing world, and what was once true may no longer be true in the future. The arrival of Donald Trump on the world stage and the global challenges facing the world may pose an unexpected problem for Bitcoin and other cryptocurrencies. Back in June of this year, Forbes warned that the collapse of the world order and the rise of a new one in the hands of tech giants could bring unexpected challenges.
And there are many of them – from war in the Middle East, through trade wars with China, to warnings from the European Union about the destabilization of the entire market.
Bitcoin is winning and showing that we have to reckon with it
Cryptocurrencies have become part of the political struggle, and this is also reflected in the news. The fact is, however, that the halving effect is still evident in Bitcoin, refuting most of the dramatic concerns.
In addition, there are also positive changes happening on the world stage that strengthen the position of cryptocurrencies in the financial world. For example, in March of this year, Trump ordered the creation of Bitcoin reserves. In doing so, he showed that Bitcoin will be a factor in the future. In short, development cannot be stopped, and cryptocurrencies will continue to grow as society becomes more digital.
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