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From $ 0 to $ 19891 (and again down to $ 3791.01 today).
To the bottom when … actually 10 years ago to be precise, did someone create bitcoin, or was it the blockchain? I'm not sure what the first result is.
That day no one (or very few) knew what it was, but sure, it generated a whole culture of digital currency enthusiasts that along the way have developed not only a new coin out of thin air, but also a new language brand to go with it.
Nobody knew what the blockchain was, or knew that mining had nothing to do with coal but with coins. They called it cryptocurrency – like criptonite (as in Superman's Achilles heel). They were kept in their wallets, but the wallets were not like those carried by your grandfather. Perhaps some of the words were not new, but they certainly had a new meaning.
Those same people were obsessed with the idea of breaking the legal currencies, taxes and government regulations, manipulation and the unlimited supply of money. Blockchain would have none of this. Furthermore, there would be only 21 million Bitcoins. I am still not sure of the impact of the offer from other cryptocurrencies like Ethereum, Ripple or Litecoin, but the supply of Bitcoin would be defined and limited.
Those same people …. well miners … invested in computers with nvidia chips that solved algorithms that required so much electricity and generated so much heat that the "miners" based their operations near hydroelectric plants where electricity it was cheaper, and in cold environments. Colder and better is the processing power of the chips, it could heat up a small town (I invented it).
In any case, on 3 January 2009, block no. 0 was negotiated for 50 BTC. It was received in the blockchain and timestamp at 18:15:05. There was no commission. There was not even a market at the moment. This would happen later when "The Bitcoin story" was told in all the newspapers, in all the magazines and in all the commercial news stations. The marketing / hype engine has come into full effect. The story began in earnest in 2017 and the price of that year rose from $ 734 down, to a maximum of $ 19,891 during the week of December 17, 2017. WOW !!!
Of course, the house of cards began to fall in 2018. However, anyone who pulled out those first 50 coins (if they called "extract" at that time) would have a value of $ 189,550.50 of BTC in their wallet at the current price of $ 3791 01. It's not a bad return for being the first to solve the algorithm. The legend there is, the owner has done it by hand on a blackboard (I also invented myself). Only 20,999,950 remained after that first block.
Since then – at least according to Wikipedia – the total circulation at December 16, 2018 is 17,428,612. However, with 17.4 million dollars worldwide, only 3,571,388 remain in mine. Get mining people. There is $ 13,539,167,621.88 of free money out there.
What happens when all Bitcoins are extracted and there is a pile of computers with nothing else to do? (do you sell your nvidia actions?)
I do not know. Perhaps, the hype engine restarts for the second coming of Bitcoin and this is the Big Bang. The price – like any price in a market – is defined exclusively by buyers and sellers. As long as there is a willing buyer and a willing seller, the price can go anywhere. It can go to infinity and beyond – especially without new supplies (PS: it could be like the story goes) I really do not know)
For me, the story is a little twisted and can be hard to believe. However, I know that there is a price and a market (unless it is regulated by what it might be). That price can be tracked and the tools can be applied (see weekly chart above from the Coinbase price feed). Traders who do not "get" the story or do not know where to start extracting a coin can still look at a chart and trade with limited risks.
For example, looking at the Bitcoin weekly chart on Coinbase, the fall from grace brought the price up to half of the MA (white line) for 50 weeks, then the MA for 100 weeks (which is the blue line). Each break was bearish and led to further momentum in the price.
The last bullish uptrend arrives at the MA week 200 (which is the green line).
Here, the traders of "Bitcoin Land" have defended that stronghold MA in December. The MA currently reaches $ 3236.46. Stay on and the bulls cling to a glimmer of hope. Crack under and the sale could / should intensify. Sellers continue to beat bitcoin bulls.
I imagine that 2018 has arrived at the end of annus horribilis (which is the Latin for the year of disaster and misfortune) by testing the KEY MA level. After all, 2018 has closed a whisker from the $ 20,000 level. The 2017 should therefore have closed a breath from another important milestone (ie the MA of 200 weeks).
It means that 2019 will be a growing year but not as exceptional as 2017 … ie. something in the middle? Or are we going up and down?
We'll see, but I have a feeling that a 200-week MA – that green line in the chart – can give traders some clues to trading.
Happy birthday Bitcoin. You have done a lot in your 10 short years.
