It was 2011 and the world was still having a hard time getting exactly what Bitcoin was. In the previous year, the first Bitcoin transaction had taken place—two pizzas were bought for 10,000 Bitcoins. Still, it was an enigma to most. The media didn’t make it any easier, with Bitcoin being linked to all sorts of things, the most popular of which was ‘a currency for the drug dealers.’ Still, it forged on.
2011 was a landmark year in the life of Bitcoin, for more reasons than one. The first significant event took place in January that year when block 105,000 was mined, which meant that the supply of Bitcoin had hit 25% of its target.
During this time, Bitcoin’s price had also been rising steadily, buoyed by the coverage it had been receiving on media outlets, both the good—such as the coverage on the pizza purchase the previous year—and the bad—such as being deemed as the currency of drug dealers.
The next milestone for Bitcoin took place in February, the first time that Bitcoin achieved dollar parity on Mt. Gox. This meant that the price of one Bitcoin was equal to one U.S. dollar. The price had shot up over 130,000% since Bitcoin’s launch and over 15,000% in less than a year. This got the attention of many, with Bitcoin.org, one of the few crypto-focused sites at the time, almost crashing due to high traffic.
While there are hundreds of exchanges right now offering crypto trading, back then it was different. The infamous Mt. Gox was the dominant one and was almost singlehandedly responsible for determining the price of Bitcoin globally.