Bitcoin genesis block went live on Jan. 3, 2009, laying the foundation for the evolution of cryptocurrencies. 50BTC, the reward Satoshi received for mining Block 0, became the first amount of Bitcoin to officially exist. At the time of mining, the value of 1BTC was equivalent to $0 and only traded for $0.08 a year later. A decade later, with a one trillion dollar market cap, the value of a BTC is trading above the $50,000 mark. Yet, the recurrent question remains:
Can 1 BTC be worth a million dollars?
- In the beginning, Bitcoin was worth just $0 after its creation and traded at 0.08 one year later
- Market Analysts predict Bitcoin can hit I Million dollars in market value within the next decade.
- Institutional adoption may fuel price increase
The worth of Bitcoins in the beginning
What was Bitcoin worth in 2009? Bitcoin has one of the most fluctuating price histories. To understand how Bitcoin will be worth a million dollars in the future, it is very pertinent to go back at the very beginning to trace its price histories, and how it has progressed over time.
The first mining took place on Jan. 3, 2009. This date is significant because it made the news that the Government was planning a second phase of a bailout for banks, to resolve the financial crisis of the period. Satoshi included the headline from the times (The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.) within the genesis block.
During this period, Bitcoin has not gotten any attention from the public because Satoshi was practically experimenting on mining, and testing out transactions. The first set of coins processed into the network from the mining was 50BTC that was worth around $0 per coin.From a fraction of a cent to a dollar.Over time, Bitcoin caught the interest of other parties. It began trading around $0.08. This gain was the benchmark that triggered the price movement of BTC to date.
On May 22, 2010, Bitcoin witnessed its first commercial use. Two pizzas sold for 10,000, setting the stage for more commercial uses. May 22 is now officially recognized as Bitcoin Pizza Day.
Further increase in Bitcoin’s value occurred on Feb. 9, 2011. Bitcoin rose to the $1 threshold, attaining crucial parity with the United States dollar. This increase ushered in the first Bitcoin surge that drove the price from $1 to $31 within the space of four months. Though it plummeted afterward to $2, recording the first Bitcoin crash.
Elon Musk Effect: From $1000 to institutional interests.
Bitcoin achieved its $1000 peak in November 2013. In four years, it recorded another groundbreaking high of $5000 and skyrocketed to a new peak of $20,000 by December of 2020.Between these periods of Bitcoins price fluctuations, there was little or no institutional support and adoption. The biggest Bitcoin rally happened when Elon Musk 0n Feb., announced adoption for the car company, Tesla. Prices of Bitcoin jumped dramatically doubling its price to reach a new high of $44,000.
The market witnessed a pullback as the Chinese Government cracked down on Bitcoin businesses. Although there were environmental concerns that prompted some institutional adopters to temporarily suspend their support.
Bitcoin has managed to overcome those challenges and is worth more than $60,000 at press time.
Currently, more and more institutions are beginning to show support or interest in Bitcoin even as regulatory policies and Government crackdown intensifies.
Data chat from trading view.
Factors that drive the Bitcoin price
Many factors contribute to driving BTC prices to new highs, but the following are very obvious.
- Celebrity Endorsements
Celebrity endorsement is a very strong factor that drives Bitcoin prices. Celebrities have thrown their support around Bitcoin and had on many occasions influenced its rally.With more and more celebrities getting on board, it is very obvious that Bitcoin will witness another market boom that will drive its worth to unprecedented heights.
- Institutional adoption
Many top companies are beginning to adopt Bitcoin. A few of these companies are Goldman Sachs, Visa, PayPal, Tesla, and others.As of press time, BTC ETF has made a historical debut on the New York stock exchange (NYSE), and some other centralized exchanges globally. The implication is that more and more investors who consider holding the actual coin volatile will key into the stock exchange listing. This move will drive up the price in time.
- Government policies
Most Governments are indeed cracking down on BTC, however, others are also adopting it as a legal tender. El Salvador led the Government’s counter move and had become a great symbol that shows that more government adoption will likely follow.Experts are optimistic about the Bitcoin $1M/BTC worth although no one knows exactly when.
In his article, The Billionaire Flippening, Balaji Srinivasan, former Coinbase CTO, predicted that the Bitcoin Billionaires will multiply once the price of BTC hits $100,000. He believes Bitcoin’s 1 million dollar worth is certain, and that by his calculation at $1M/BTC, there would be 2393 billionaires.
Anthony Pompliano, co-founder and partner at Morgan Creek Digital Assets, in a CNBC Podcast, Beyond the Valley, said Bitcoin will reach $1 million per coin by the end of the decade.
Global Equities Research’s Trip Chowdhry and many other experts in a Forbes report argued for the $1M/BTC also citing its implications.Bitcoin will reach $1 million worth, but no one can say exactly when given its volatile movements. Bitcoin believers are optimistic about the immediacy of the outcome, capping its realization within the decade.
While some experts are excited about the outcome, others warn it could be catastrophic. Investors are not deterred with all the price predictions, bullish or bearish. As Bitcoin inches towards $100,000 to a BTC mark, it fuels the increasing optimism for the $1M/BTC rally. It is certain. It is coming.