From Two Pizzas to $100,000: What Has Bitcoin Been Through?
Jan 15, 2025
Bitcoin (BTC), from an obscure experiment in 2009 to surpassing $100,000 in 2024, has become a legend in the global digital asset space. Its creation stemmed from the exploration of decentralized finance, and over its 15-year journey, Bitcoin has experienced technological breakthroughs, market volatility, and regulatory challenges, evolving from a “geek toy” to the symbol of digital gold. Looking back on this journey, from 10,000 BTC being traded for two pizzas to becoming a mainstream investment asset, every step of Bitcoin’s growth has been marked by skepticism and triumph, ultimately cementing its place at the pinnacle of modern finance.
The Origins of Bitcoin: A Technological Revolution from Scratch
In 2009, Satoshi Nakamoto released the Bitcoin whitepaper and mined the Genesis Block, launching the world’s first decentralized digital currency network. At the time, Bitcoin was largely seen as a “geek toy.”
On May 22, 2010, Bitcoin completed a historic transaction—programmer Laszlo Hanyecz traded 10,000 BTC for two pizzas. This transaction marked the first real-world use of Bitcoin. Ironically, while the value of those Bitcoins was about $41 at the time, by 2024, that same amount is worth over $1 billion! Despite this milestone, Bitcoin remained a niche technological experiment, mainly used by cryptography enthusiasts to explore the potential of decentralization.
Entering the Market: From Geek Circles to the Mainstream
Bitcoin made its first major price surge in 2013, surpassing $100. That year, the Cyprus financial crisis exposed vulnerabilities in the traditional banking system. Bitcoin’s “non-sovereign currency” status attracted funds seeking a hedge against economic instability.
In the years that followed, Bitcoin’s price movements became cyclical:
The 2017 Bull Run: Bitcoin’s price skyrocketed from $1,000 at the start of the year to nearly $20,000. This surge was driven by the crypto market boom and the frenzy surrounding Initial Coin Offerings (ICOs). However, as the market overheated, the 2018 bubble burst, causing Bitcoin’s price to crash to $3,000 and shaking investor confidence.
The 2020 Turning Point: The global COVID-19 pandemic triggered economic uncertainty, amplifying volatility in traditional financial markets. Bitcoin regained attention due to its scarcity and role as a hedge asset, becoming a critical part of institutional investors' portfolios.
2024: The Milestone of Breaking $100,000
In 2024, Bitcoin reached a historic moment—its price surpassed $100,000. Several key factors contributed to this achievement:
Record Price High: In November 2024, Bitcoin’s price surpassed $100,000, setting a new all-time high.
Halving Effect: On April 19, 2024, Bitcoin underwent its fourth halving event, reducing miner rewards from 6.25 BTC to 3.125 BTC. Historically, halving events have led to reduced supply, often driving price increases.
Continued Institutional Participation: Large institutions, such as MicroStrategy, continued accumulating Bitcoin, underscoring confidence in its value. Additionally, asset management giants like BlackRock applied for Bitcoin spot ETFs. If approved, these ETFs would provide easier access for institutional investors, and bringing substantial capital inflows.
Macroeconomic Impact: With global central banks maintaining high interest rates, traditional asset markets have faced significant volatility. Bitcoin is increasingly viewed as a hedge, especially amid a weakening U.S. dollar and persistent inflation pressures, further solidifying its “digital gold” narrative.
Bitcoin’s Technical Characteristics and Investment Value
As the first cryptocurrency built on blockchain technology, Bitcoin possesses the following key attributes:
Decentralization: Operating on a distributed network, Bitcoin requires no central authority, enhancing its resistance to censorship.
Scarcity: With a capped supply of 21 million, Bitcoin mirrors the scarcity of gold, providing a robust store of value.
Transparency: All transactions are publicly recorded on the blockchain, ensuring transparency and trust within the system.
These features establish Bitcoin as “digital gold,” offering potential value for inflation hedging and portfolio diversification.
From Skepticism to Mainstream: The Role of Regulation
As the Bitcoin market expands, regulatory compliance has become increasingly important. Governments and regulatory bodies worldwide are actively developing frameworks to oversee Bitcoin’s trading and usage:
Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT): Exchanges and wallet service providers are required to implement strict KYC (Know Your Customer) procedures to prevent illicit activities.
Tax Compliance: Cryptocurrency taxation varies by country. For example, the U.S. Internal Revenue Service (IRS) regulates cryptocurrency taxation, focusing on transactions such as sales and using crypto for goods or services. Tax rates differ based on short-term and long-term capital gains, ranging from 0%, 15%, or 20%, depending on income. Germany exempts profits from tokens held for at least one year, while profits from tokens held for less than a year are treated as regular income.
Exchange Regulations: Licensing requirements are imposed on exchanges to ensure operations comply with legal standards and protect investor interests.
Regulation plays a key role in addressing market concerns, fostering trust, and facilitating Bitcoin’s integration into mainstream finance.
Hong Kong's Recognition and Regulatory Progress in Digital Assets
As an international financial hub, Hong Kong continues to enhance its recognition of digital assets and refine its regulatory framework.
Improvement of Regulatory Framework
On October 28, 2024, the Securities and Futures Commission (SFC) of Hong Kong unveiled its regulatory roadmap for the virtual asset market. The SFC aims to issue formal licenses to the first batch of virtual asset trading platforms by the end of the year.
Stablecoin Legislation
On December 6, 2024, the Hong Kong government officially introduced its Stablecoin Legislation. The new law mandates that individuals or entities operating or promoting fiat-referenced stablecoins (FRS) to the public in Hong Kong must obtain appropriate licensing from the Hong Kong Monetary Authority (HKMA).
As one of the first SFC-licensed virtual asset exchanges in Hong Kong, OSL strictly adheres to international compliance standards while leveraging advanced technology to safeguard user assets. OSL provides a secure and efficient trading experience, making it a trusted platform for exploring Bitcoin and other digital assets.
Tax Incentive Policies
To enhance its status as an offshore financial center, Hong Kong plans to exempt taxes on profits from crypto investments, private credit, and other digital assets made by private equity funds, hedge funds, and ultra-high-net-worth individuals. This policy aims to attract more investors to the region.
Future Outlook: What’s Next for Bitcoin?
Following Bitcoin’s milestone of breaking $100,000, its future potential has sparked widespread speculation. Many analysts predict that Bitcoin could reach $1 million in the coming years, driven by institutional capital inflows and growing acceptance by sovereign nations. However, its price volatility and regulatory risks remain critical considerations for investors.
From Two Pizzas to $100,000, Bitcoin Has Written a Legend The rise of Bitcoin reflects a remarkable convergence of technology and finance. Its success has redefined the digital asset landscape while offering global investors new opportunities for wealth and innovation.
Choosing a compliant and secure platform like OSL is essential for navigating this new era of finance. As Bitcoin’s story continues to unfold, are you ready to witness the next miracle?
