Seven wild moments from its turbulent history

The price of Bitcoin has crossed the $100,000 mark for the first time, setting a new record.

The value of the world’s largest cryptocurrency has been boosted by expectations that US President-elect Donald Trump will adopt pro-crypto policies.

The milestone came hours after Trump announced he would nominate former Securities and Exchange Commission (SEC) Commissioner Paul Atkins to lead the Wall Street regulator.

Mr. Atkins is believed to be much more supportive of cryptocurrency than current SEC chief Gary Gensler.

The $100,000 milestone prompted celebrations from cryptocurrency fans around the world.

Bitcoin’s wildly fluctuating value has always attracted interest, and its supporters are happy to respond to exceeded the previous price thresholds – and stubbornness during its decline.

But this particular landmark is especially welcome. Social media has been swirling for weeks with charts, memes and predictions about when the price will reach the number considered one of the holy grails of the cryptocurrency world.

Millions of viewers even watched online viewing parties as the price hovered close to $100,000.

The value of one bitcoin is one barometer of optimism in the cryptocurrency industry, which is currently estimated to be worth $3.3 billion, according to analysis firm Coin Market Cap.

Trump’s election victory last month was the catalyst for the latest surge.

The president-elect has vowed to make the United States the “cryptocurrency capital of the planet,” a landmark move that took as long as 2021, calling Bitcoin a “fraud.”

It is also remarkable how the price of Bitcoin has skyrocketed. The $100,000 valuation represents a 40% gain on Election Day in the US and more than double the price at which it started the year.

But there is much more to Bitcoin than dizzying changes in its value.

From the enigmatic inventor to the destruction of the so-called Crypto King, it is a story with many twists and turns that has seen huge fortunes made and lost.

So here’s the BBC’s list of the seven wildest moments – so far – in Bitcoin’s tumultuous history.

1. The mysterious creator of Bitcoin

Despite its huge profile, no one really knows who invented Bitcoin. The idea for it was posted on Internet forums in 2008 by someone calling himself Satoshi Nakamoto.

They explained how a peer-to-peer digital cash system could work to allow people to send virtual coins over the Internet as easily as sending an email.

Satoshi created a complex computer system that would process transactions and create new coins using a huge network of self-appointed volunteers around the world who used special software and powerful computers.

But he or they never revealed their identity, and the world never figured it out.

In 2014, Japanese-American man Dorian Nakamoto was hounded by journalists who believed he was the elusive creator of Bitcoin, but it turned out to be a false surprise caused by some mistranslated information.

Australian computer scientist Craig Wright said in 2016 that it was him, but after years of legal battles, a High Court judge concluded that he was not Satoshi.

Earlier this year, a Canadian Bitcoin expert named Peter Todd strongly denied that he was Satoshiwhile in London this month Britain’s Stephen Molla claimed that but no one believed him.

2. Making history with pizza

Bitcoin now underpins a two trillion dollar cryptocurrency industry, but the first recorded transaction using it was to buy a pizza.

On May 22, 2010, Lazlo Haniec offered $41 worth of Bitcoin in exchange for two pizzas on a cryptocurrency forum.

A 19-year-old student took the plunge and the day went down in history for currency lovers as #BitcoinPizza Day.

A source of memes for those in the crypto community, it also showcased the power of Bitcoin, an internet money that can truly be used to buy things online.

Criminals must have been watching too, as the year saw the opening of the first darknet marketplace selling drugs and other illegal goods in exchange for Bitcoin.

Lazlo’s deal is looking pretty bad now, too. If he had kept those coins, they would now be worth hundreds of millions of dollars!

3. Becoming legal tender

In September 2021, the President of El Salvador, Central America, Naib Bukele, made Bitcoin legal tender.

Hairdressers, supermarkets and other shops were required by law to accept Bitcoin along with the main currency, the US dollar.

Many Bitcoin enthusiasts and reporters visited the area, briefly boosting tourism in the country.

Although President Bukele hoped the move would increase investment in his country and reduce costs for citizens exchanging money, it did not become as popular as he had hoped.

He still hopes it will rise, but for now the US dollar is still king in the country.

President Bukele has spent huge amounts of public money trying to get people to accept Bitcoin, he has controversially bought over 6,000 bitcoins in recent years.

The president spent at least $120 million buying bitcoins at various prices in hopes of making a profit for his cash-strapped country.

That started to look good him in December 2023, when his net worth skyrocketed for the first time.

Website created by Dutch software engineer Elias Zeruk Country Bitcoin Tracking farms and currently estimates that the value of the coins has increased by 98%.

4. The rise and fall of Kazakhstani cryptocurrencies

In 2021, Kazakhstan became a mining hub for Bitcoin, the complex calculation process that underlies cryptocurrency transactions.

Today, it takes warehouses full of the latest computers running all day and all night, but the reward is brand new bitcoins for the companies that participate.

Computer warehouses require a lot of energy, and many companies moved to Kazakhstan, where electricity was abundant thanks to its huge coal reserves.

At first, the government welcomed them with open arms as they brought in investments.

But too many miners arrived and put a huge strain on the power grid, putting the country at risk of blackouts.

Within a year, Kazakhstan’s Bitcoin mining industry took off from boom to bust as the government imposed restrictions and increased taxes to limit growth.

Globally, the Bitcoin network is estimated to consume as much electricity as a small country, raising concerns about its environmental impact.

5. Bitcoins in the garbage dump

Imagine having a cryptocurrency wallet worth over $100m (£78m) – and then accidentally thrown away hard drive with login information.

That’s what James Howells from south Wales says happened to him

The very nature of encryption means that recovery is not as simple as resetting a password. If there are no banks involved – there is no customer support helpline.

Unfortunately for him, his local council in Newport refused to allow him access to the landfill site where he says the device ended up – even after he offered to donate 25% of his Bitcoin stash to local charities if they would let him.

He told the BBC: “It was a penny drop and it was a sinking feeling.”

6. Crypto King cheat

No one has lost more Bitcoin than former billionaire crypto tycoon Sam Bankman-Fried. The founder of the giant cryptocurrency firm FTX was called the king of cryptography and was loved by the public.

FTX was a cryptocurrency exchange that allowed people to trade real money for cryptocurrencies like Bitcoin.

His empire was worth around $32 billion and he was flying high until it all came crashing down within days.

Journalists had discovered that Bankman-Fried’s company was financially unstable and had illegally transferred funds from FTX clients to support his other company, Alameda Research.

Just before his arrest at his luxury apartment complex in the Bahamas in December 2022, he spoke to reporters. He told the BBC: “I don’t think I committed fraud. I didn’t mean for it to happen. I certainly wasn’t as competent as I thought I was.”

After his extradition to the United States, he was found guilty of fraud and money laundering imprisoned for 25 years.

7. Investment banking boom

Despite all the turmoil, Bitcoin continues to attract the attention of investors and large companies.

In fact, in January 2024, some of the largest financial firms in the world added Bitcoin to their official asset lists as Spot Bitcoin ETFs. They are like stocks and shares tied to the value of Bitcoin, but you don’t have to own them personally.

Customers have poured billions into these brand new products. There have also been companies including Blackrock, Fidelity and GrayScale buying Bitcoins in their thousandspushing its value to a record high.

It’s a huge milestone for cryptocurrency, as some fans believe Bitcoin is finally being taken as seriously as the mysterious Satoshi envisioned.

Still, few would balk at more wild moments as Bitcoin’s story continues to unfold.