1 January 2020 – 1 Bitcoin = $7,200
1 January 2019 –  1 Bitcoin = $3,800
1 January 2018 – 1 Bitcoin = $13,600
1 January 2017 – 1 Bitcoin = $1,000
1 January 2016 – 1 Bitcoin = $430
1 January 2015 – 1 Bitcoin = $315
1 January 2014 – 1 Bitcoin = $770
1 January 2013 – 1 Bitcoin = $13
1 January 2012 – 1 Bitcoin = $5
1 January 2011 – 1 Bitcoin = $0.30

Key dates and events:

3 January 2009:
Satoshi Nakamoto launches Bitcoin mining block #1. One week later Hal Finney spins up his fully validating Bitcoin node and receives the first Bitcoin transaction from Satoshi.

22 May 2010:
2 pizzas were traded for 10,000 Bitcoin. First major trade that gives Bitcoin real world value.

28 November 2012:
1st Bitcoin halving (50 to 25 Bitcoin created and distributed approximately every ten minutes).

6 July 2016:
2nd Bitcoin halving (25 to 12.5 Bitcoin created and distributed approximately every ten minutes).

20 July 2017:
Segregated Witness activated which provides a significant scaling milestone allowing for more Bitcoin transactions on the network.

May 2020:
3rd Bitcoin halving expected (12.5 to 6.25 Bitcoin created and distributed approximately every ten minutes).

Predictions for 2020 and Beyond

Exactly one year after the first halving (end of November and beginning of December of 2013) the price of Bitcoin peaked at just over $1100 which was just about the price of an ounce of gold at the time.

It took about a year and a half after the second halving (mid December of 2017) for Bitcoin to reach its peak of nearly $20,000. It took longer for the price to peak because during this time there was a heated debate about how Bitcoin would scale to the masses. It wasn’t until Segregated Witness was activated in mid 2017 that the price of Bitcoin really skyrocketed.

Now that the general consensus that Bitcoin is digital gold (a store of value) and not necessarily a way to pay for your morning coffee, the price of Bitcoin should rise sooner and than what we experienced after the second halving. With the growth in exchanges, media coverage, new wallets, transactions, core infrastructure and companies catering to institutions we should see a steady rise for years to come.

A liquid futures market also keeps the price of Bitcoin rising steadily as opposed to the peaks and troughs we experienced before they existed. Futures markets dictate the price because it is where there is the most liquidity. If everyone gets to optimistic at once about the price of Bitcoin in the futures markets, the bulls have to pay the bears more interest than they would earn from a modest increase in price.

Historical Bitcoin events and a healthy awareness about where we are today in traditional financial markets should be your guide to building wealth. None of this is personalized financial advice but hopefully it gives you perspective about how to invest your money.