16 most important updates in Bitcoin history

Its journey from an obscure digital asset to the top cryptocurrency is marked by lots of highs and lows.

From government regulations and mass adoption to waves of crashes and controversy, Bitcoin has been on the receiving end of both good and bad press over the years.

Regardless, its origin story of being a somewhat unknown asset into what it is worth in 2024-a digital token worth well over $60,000-is definitely a triumph and a step forward for Bitcoin and digital currency as a whole.

With how dynamic the landscape is surrounding crypto, there's definitely an interplay of various factors that have continued and will continue to influence Bitcoin's relevance and price.

That said, several past, notable events have played a major role in shaping Bitcoin into becoming what it is today.

Let's dive into the Bitcoin timeline and look back at a few of the most important updates in the history of Bitcoin.

In late 2008, an enigmatic figure called Satoshi Nakamoto launched Bitcoin to the public alongside a white paper titled Bitcoin: A Peer-to-Peer Electronic Cash System.

Until now, no one knows the true identity of Satoshi Nakamoto, or even if they're a person or a group of individuals. But this launch has changed the course of how humans deal with finance for years to follow.

The first Bitcoin block dubbed the Genesis Block was mined on January 3, 2009, by Satoshi Nakamoto.

It has been revealed that no more than 21 million Bitcoins can be mined throughout its lifetime, denoting scarcity in supply. However, not many people are willing to go through the hoops of getting Bitcoin themselves. Only a handful of people are following Bitcoin at this point, and even fewer are mining it.

On November 22, 2009, A community of Bitcoin and cryptocurrency enthusiasts called BitcoinTalk was formed. This was a forum made by none other than Satoshi Nakamoto.

Bitcoin's value continued to grow steadily but at a snail's pace. By 2010, it was worth $0.41 per Bitcoin.

While that amount of Bitcoin may have little value to some, to Jeremy Sturdivant, 10,000 Bitcoin was an acceptable currency for $41 worth of Papa John's pizzas. Early Bitcoin miner Laszlo Hanyecz gave this amount.

This was the first-ever transaction utilising this digital asset in the real world. This update was so important that May 22-the day the transaction was made-is fondly commemorated as Bitcoin Pizza Day by the crypto community.

In 2011, Bitcoin reached its highest peak yet in June 2011, with the Bitcoin price AUD at $30 per Bitcoin. This rise was exponential relative to its price before that month.

However, following that, the price of Bitcoin has fallen fast. By the end of the year, the value of Bitcoin was just $4.70.

Throughout 2011, other crypto projects started to rise to fruition. A popular altcoin called Litecoin (LTC) was launched in October 2011 by Charles Lee. This altcoin used a similar base code to Bitcoin but with a few slight modifications in its hashing system and supply cap.

Bitcoin halving is a built-in feature in its blockchain protocol that automatically reduces mining rewards by 50% every four years. This is to ensure that the amount of mined Bitcoin doesn't exceed 21 million-ruining the credibility of its deflationary nature.

In 2012, Bitcoin mining rewards decreased from 50 Bitcoin per block to 25 Bitcoin. The price of Bitcoin is still recuperating after the 2011 crash, but it's at an upward trajectory at $13.45 at the end of the year.

2013 was a time of tremendous growth for Bitcoin. It has reached $1,000 in value. From the beginning to the end of the year, its value shot up by 5,481.1%.

That said, 2013 was also when Bitcoin's inherent utility started to get bad press.

The anonymous nature of Bitcoin transactions made it the perfect resource for illegal activities-and this has led to many transactions using it to be brought to the dark web.

The FBI shut down one of the dark web's most popular crypto-exclusive marketplaces, the Silk Road, and arrested its owner, Ross Ulbricht. The Silk Road was a marketplace that hosted money laundering activities and illegal drug transactions using cryptocurrencies.

The FBI seized 144,000 bitcoins. Today, the FBI owns 174,000 Bitcoin, with 144,000 of which being seized from the Silk Road crackdown.

In 2014, there was a lack of optimism surrounding Bitcoin as an investment.

The sole cryptocurrency exchange website of the time, MtGox, collapsed. A notable board member of the Bitcoin Foundation Charlie Shrem was found guilty of money laundering. The price at the end of the year was $334.

Matt Phillips of Quartz called Bitcoin the worst investment of 2014. And at that time, the future did seem bleak.

Bitcoin is slowly regaining its composure.

On the technical side of things, Bitcoin XT was released, which addressed Bitcoin's scalability issues by increasing the block limit. EU lawmakers have also exempted Bitcoin from VAT, which is a step towards legitimising the currency.

It ended the year at $430. The community surrounding Bitcoin is also starting to develop and mature.

The second halving was widely anticipated by a subset of crypto enthusiasts. It even picked up media attention. It reduced mining rewards from 25 to 12.5 per block.

That said, 2016 was steadily but slowly growing in terms of price movements, with the Bitcoin price AUD jumping from $500 to $1,000 throughout the year. This was also the last year that Bitcoin will equal to just three figures.

Towards the end of 2017, Bitcoin shot up significantly, peaking at nearly $20,000 USD on December 15.

However, a big part of this increase was because of market manipulation from other users with another crypto called Tether.

Following the peak, Bitcoin started to crash to 30% of its peak value. Other cryptos also fell along with it.

Government bodies started to create new policies to regulate cryptos more effectively. The SEC also came forward to reject the proposition of a Bitcoin ETF, which was a setback for mainstream acceptance.

The days were quite dark at this time for crypto.

The IRS put forth a form that crypto owners can use to record capital gains and losses. This move helps legitimise crypto in the real world.

Bitcoin's value slowly picks up. It doubles from last year's value and sits comfortably at $7,350 at the end of the year.

2020 had a positive impact on cryptocurrency. The FDA approved the addition of Bitcoin in exchange-traded funds (ETFs). The third halving also occurred, which halved rewards to 6.25. The pandemic also changed the status quo, and Bitcoin was seen as a safe asset in a rapidly declining economy.

After a few bumpy months, Bitcoin surpassed its all-time high at $20,000. It carried this momentum into the next year, signalling a bull run.

As institutions start to approve and regulate Bitcoin, this has incited broader Bitcoin market acceptance. Two new all-time highs have been recorded during this year-one in April at $64,000 and one in November at $69,000.

Furthermore, El Salvador adopted Bitcoin as a legal tender. This was a monumental moment as it marked the first time a sovereign nation used this digital asset as a financial measure.

However, on the opposite side of things, cryptocurrency is getting the boot in China. This crypto-buying restriction has severely hindered the growth of Bitcoin in that region and across the globe at large.

There's a loss of market confidence in 2022 in Bitcoin and crypto at large. Major players like Luna and Terra have caused catastrophic losses to investors. By mid-2022, the value of Bitcoin was just $20,000.

The reason for this is rising interest rates and low confidence in markets. Crypto-industry players are recouping and strategising new efforts, but they're not hanging the towel just yet.

In 2023, Bitcoin received upgrades through the Lightning Network, a layer-2 innovation that helps improve the cryptocurrency's scalability and transaction speed.

Regulatory guidelines across the globe are also getting clearer-and with the general acceptance of Bitcoin in major countries across the Americas and Europe, interest is ramping up yet again.

By the end of the year, Bitcoin's price shot up to $42,265.

There are about 2 million Bitcoins left to be mined, and the yearly mined figure is going to go slower again with the halving cutting the amount of Bitcoin per block to 3.125.

In the days leading up to April 2024, the halving has brought about a new all-time high for the cryptocurrency at $70,000. However, it's keeping stable at about $60,000 for the month afterwards.

This information is of a general nature only and should not be regarded as specific to any particular situation. This should not be taken as financial advice to buy, trade, or sell cryptocurrency or use any specific exchange. This is not intended for use as investment, financial or legal advice as each individual's need will vary.