Bitcoin Historical Prices
If you’re aware of the digital currency called Bitcoin, you’re probably also aware that it’s price has been steadily climbing over the past several months as it gains more widespread acceptance from the mainstream financial community.
What you may not be aware of is the remarkable price history that Bitcoin has racked up over the past few years since its launch in 2009.
Official exchange pricing of Bitcoin, depending upon which Bitcoin exchange you’re using, generally began in July of 2010. Bitcoin was first introduced into the world as a functioning digital currency in January of 2009, however, there were no Bitcoin exchanges at the time to convert Bitcoins into any of the government-issued currencies of the world. Any such transactions were done on a person-to-person, individual level. Records of such transactions are sparse.
So, with the records being what they are, we can still estimate the Bitcoin exchange rate for time frames prior to July of 2010.
Which brings us to the historical price of Bitcoin. Here is the Bitcoin price in U.S. Dollars on January 1 of each of the past 4 years (we’ve provided an estimate for the Bitcoin price on 1/1/2010 as there were no official exchange prices dating back that far):
January 1, 2010: $0.01 (estimate)
January 1, 2011: $0.29
January 1, 2012: $4.70
January 1, 2013: $13.55
Looking at the trend over these past few years of the historical increases in Bitcoin’s value, let’s average out the yearly gains and extrapolate a few years into the future using the already established price history of Bitcoin.
From 1/1/10 to 1/1/11 Bitcoin went up about 29 times in price. From 1/1/11 to 1/1/12 Bitcoin went up about 16 times in price. From 1/1/12 to 1/1/13 Bitcoin went up about 3 times in price.
The average of these three is 16. Using this information, we can project out a few years. Of course, as the old saying goes, past performance is no guarantee of future results. There is no guarantee that Bitcoin’s price will continue to rise at the same phenomenal rate that it has over the previous three years.
With that preface, here’s the projection for the next few years based upon an average yearly price increase of sixteen fold:
January 1, 2014: $216.80
January 1, 2015: $3,468.80
January 1, 2016: $55,500.80
January 1, 2017: $880,012.80
Bottom line: if Bitcoin’s price for the next 3 years continues to increase at roughly the same rate as the last 3 years, the price of each Bitcoin will be just over $880,000.00.
Those numbers might seem impossible, but consider the story of Kristoffer Koch.
You might want to buy a few Bitcoins at today’s prices, just in case history repeats itself.