Reuters
Donald Trump's victory in the US presidential election helped push the price of Bitcoin to a series of record highs.
Supporters of the digital currency are rejoicing and wondering how much more valuable it could become – with some suggesting it could reach $100,000 per coin.
Its price is skyrocketing because the president-elect has pledged to make the United States “the crypto capital of the planet” – a remarkable turnaround given that as recently as 2021 he was calling Bitcoin a “scam.”
He even began accepting Bitcoin and other cryptocurrencies as campaign donations and raised millions from the industry.
But that's just one of many twists and turns in the stunning story of Bitcoin, which continues to captivate people around the world and has seen the creation – and loss – of enormous fortunes.
Here's the BBC's list of the seven craziest moments – so far – in Bitcoin's tumultuous history.
1. The mysterious creator of Bitcoin
Despite its enormous fame, no one knows for sure who invented Bitcoin. The idea was posted on Internet forums in 2008 by someone calling themselves Satoshi Nakamoto.
They explained how a peer-to-peer digital payment system could 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 vast 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 managed to discover it.
Retors
Dorian Nakamoto was wrongly accused of being the inventor of Bitcoin
In 2014, Japan's Dorian Nakamoto was pursued by journalists who believed he was the elusive creator of Bitcoin, but this turned out to be a false trail caused by poorly translated information.
Australian computer scientist Craig Wright said it was him in 2016 – but after years of legal battles, a High Court judge concluded he was not Satoshi.
Earlier this year, a Canadian Bitcoin expert called Peter Todd strongly denied he was Satoshi, while in London this month a Briton, Stephen Mollah, claimed he was – but no one has believed.
2. Make history with pizza
Bitcoin now underpins a two trillion dollar cryptocurrency industry – but the first recorded transaction using it was the purchase of pizza.
On May 22, 2010, Lazlo Hanyecz offered $41 worth of Bitcoin on a crypto forum in exchange for two pizzas.
A 19-year-old student agreed and the day went down in history for fans of the currency as #BitcoinPizza Day.
A source of memes for members of the crypto community, it also highlighted the power of Bitcoin – an internet currency that could truly purchase items online.
Criminals must have been watching too, because in less than a year the first darknet marketplace was launched, selling drugs and other illegal goods in exchange for Bitcoin.
The deal also looks very bad for Lazlo now. If he had kept these coins, they would now be worth hundreds of millions of dollars!
3. Become legal tender
In September 2021, President Nayib Bukele of El Salvador, Central America, made Bitcoin legal tender.
Hairdressers, supermarkets and other stores were required to legally accept Bitcoin, alongside its main currency, the US dollar.
Many Bitcoin enthusiasts and journalists visited the region, briefly boosting tourism in the country.
While President Bukele hoped the move would increase investment in his country and reduce costs for citizens transacting money, it did not become as popular as he hoped.
He still hopes it will take off, but for now the US dollar remains king in the country.
Reuters
President Nayib Bukele plans to build a city called Bitcoin City, as he pushes his country to use the digital currency.
In addition to the enormous amount of public money President Bukele has spent trying to convince people to adopt Bitcoin, he has also controversially purchased over 6,000 bitcoins over the past few years.
The president spent at least $120 million buying bitcoin at different prices in hopes of making a profit for his cash-strapped country.
It started to please him in December 2023 when, for the first time, the value of his reserve skyrocketed.
A website created by a Dutch software engineer tracks the country's Bitcoin holdings and estimates that the coins' overall value has increased by 98% at the time of writing.
4. The rise and collapse of crypto in Kazakhstan
In 2021, Kazakhstan has become a hotspot for Bitcoin mining – the process of analyzing the complex calculations that underpin crypto transactions.
These days it takes warehouses full of the latest computers running all day and night, but the reward is new bitcoins for the companies that participate.
BBC journalist Joe Tidy visited one of Kazakhstan's giant Bitcoin mines during the boom
Computer warehouses require a lot of energy, and many companies moved to Kazakhstan, where electricity was plentiful thanks to huge coal reserves.
At first, the government welcomed them with open arms as they brought in investments.
But too many miners arrived and strained the power grid, putting the country at risk of blackouts.
In one year, Kazakhstan's Bitcoin mining industry went from boom to bust as the government imposed restrictions and raised taxes to curb growth.
Around the world, the Bitcoin network is estimated to consume as much electricity as a small country, raising concerns about its environmental impact.
5. Bitcoins in the landfill
Imagine having a crypto wallet worth more than $100 million (£78 million) – then accidentally throwing away a hard drive containing the login details.
This is what happened to him, according to James Howells, from South Wales.
The very nature of cryptography means that recovery is not as simple as resetting your password. Without banks involved, there is no customer support line.
James Howells
James Howells said he wanted to return a quarter of the money to the people of Newport.
Unfortunately for him, his local council in Newport refused to let him access the landfill where he claims the device ended up – even after he offered to donate 25% of his Bitcoin stash to local charities if they would. allowed.
He told the BBC: “It was a penny-loss moment and it was a sinking feeling.”
6. Crypto King Scammer
No one has lost as much Bitcoin as billionaire former crypto mogul Sam Bankman-Fried. The founder of the huge crypto company FTX was nicknamed the Crypto King and loved by the community.
FTX was a cryptocurrency exchange that allowed people to exchange regular money for cryptocurrencies like Bitcoin.
Reuters
His empire was worth around $32 billion and he was flying high until it all fell apart in a matter of days.
Reporters had discovered that Bankman-Fried's company was financially fragile and had illegally transferred FTX client funds 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 being extradited to the United States, he was convicted of fraud and money laundering and sentenced to 25 years in prison.
7. Investment banking boom
Despite all the turbulence, Bitcoin continues to attract the attention of investors and large companies.
In fact, in January 2024, some of the world's largest financial companies added Bitcoin to their official asset lists as a Spot Bitcoin ETF. These are like stocks and shares, tied to the value of Bitcoin, but you don't have to own any personally.
Customers have invested billions in these brand new products. Companies such as Blackrock, Fidelity and GrayScale also purchased thousands of Bitcoins, sending their value to record levels.
This is a milestone for crypto, with some fans believing that Bitcoin is finally being taken as seriously as the mysterious Satoshi imagined.
Still, few would object to crazier times as the Bitcoin story continues to unfold.
