Bitcoin is now 16 years old!

Satoshi Nakamoto, a name used by the creator (or creators) of Bitcoin, mined the first Bitcoin block on Jan. 3, 2009. This “genesis” block followed the release of a Bitcoin whitepaper on October 31, 2008, which laid the foundation for the now-leading cryptocurrency.

2024 proved to be a landmark year for Bitcoin, culminating in an all-time high of $108,135 in December. Hypothetically, had someone invested $1,000 in Bitcoin on January 3, 2024, they would have witnessed a 115% growth in their investment, and seen it rise to $2,150.

Over the past 16 years, Bitcoin has grown from a novel idea into a global phenomenon, shaping the cryptocurrency market and disrupting financial systems worldwide. From its humble beginnings in 2009, to its climb to $1 in 2011, and to its momentary rise above $100,000 in 2024, the journey so far reflects Bitcoin’s disruptive power.

Let’s dive deeper into Bitcoin’s journey and see how it came to be a mainstream asset.

Bitcoin becomes part of 401(k) plans

Bitcoin rocketed in popularity after COVID-19 lockdowns. In 2021, it gained acceptance in mainstream finance with endorsements from influential figures. One of the pivotal moments was its inclusion in 401(k) plans, which marked a significant shift in how traditional retirement savings strategies embraced digital assets.

Bitcoin outpaces gold (ETFs)

After a prolonged bear market connected to the FTX collapse in 2022, Bitcoin made a strong comeback in 2024. Early on in the year, Bitcoin reached a high of $73,000 due to the SEC’s approval of spot Bitcoin ETFs, followed by the U.K.’s approval of Bitcoin-linked securities being listed on the stock market.

In a year alone, the U.S. Bitcoin ETFs have accumulated over $21 billion in total net flows, a noteworthy achievement considering the typical challenges faced by new ETFs. By comparison, it took gold ETFs around five years to reach the same level of net inflows.

Tech companies buy more (and more) Bitcoin 

Adding to the 2021 momentum, high-profile endorsements from business leaders, including Tesla (TSLA-6.56%) CEO Elon Musk, played a crucial role in amplifying Bitcoin’s appeal. In 2021, Tesla spent $1.5 billion on the cryptocurrency. Other publicly traded companies also added Bitcoin to their balance sheets.

As of Dec. 30, 2024, business intelligence firm MicroStrategy owns the most at 446,400 Bitcoin.

Financial giants such as BlackRock are leveraging on Bitcoin

The entry of financial giants including BlackRock and Fidelity into the crypto world has bolstered the proposition that cryptocurrency could be the future of finance. Financial institutions are working on the tokenization of funds, and they seem to no longer see blockchain as a threat but rather as a tool.