A great way to predict the future of anything is to look at its past. So, for this article we’re going to take a little trip through time. We don’t have to go back far, so you can leave your dinosaur mace behind, and we have a handy guide.

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Price Chart Courtesy : www.coindesk.com

Now, Bitcoin existed before anyone was charting its price, and we have talked some about that. For now, we’re going to fire up our flux capacitor and head back to April 9th, 2013. What’s significant about this date? Well, let’s go see.

coindesk-bpi-chart

Price Chart Courtesy : www.coindesk.com

From March 18th, until the day we’ve arrived, Bitcoin has been seeing a pretty sharp increase in its price. It has gone from a little over $50 to $230 in under a month. Of course, it’s about to slide somewhat, but let’s pretend that this is an electrical time sequence of a beating heart, and this one just pulsed to life. Why? Cyprus President Nicos Anastasiades began enacting economic measures to improve the Cyprus economy. Of consequence to the choices he was making, many wealthy Cyprus citizens were looking for ways to protect their wealth. The idea of Bitcoin, and its security benefits, begin to take hold in Eastern Europe and Russia. Real money starts flowing into Bitcoin and the heart begins beating.

Mt. Gox, a now defunct Bitcoin exchange service, received so many buy orders over this time that administrators became convinced that the exchange was under a denial of service attack. In this time Mt. Gox began garnering more attention as news media’s began to take note. Hundreds and thousands of Mt. Gox accounts began to open as more and more people entered into the Bitcoin Market. At, or around the same time, technical issues within the Bitcoin software itself cropped up and shook the confidence of this burgeoning price hike. Mt. Gox suspends deposits on Bitcoin while the development community of Bitcoin swiftly get things in order.

The price of Bitcoin stabilizes at around $80 – $120 as more and more people begin to adopt Bitcoin. Bitcoin pops up in popular American television shows and the non-technical world begins to hear rumblings of some kind of new computer currency called Bitcoin. Let’s hop back into the Delorean and move forward in time.

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Price Chart Courtesy : www.coindesk.com

Alright, we’ve arrived in Oct. 1, 2013. Bitcoin is at around $125 per Bitcoin. The heartbeat is going nicely, there haven’t been any wild swings in Bitcoin’s price. But hang on, because it’s about to shoot up over $1,000 per Bitcoin. What caused this kind of rise? Strangely enough, it was the destruction of an online black market called Silk Road that primarily used Bitcoin as a way to make transactions. This salacious story spread throughout the media, and as any publicity is good publicity, people started paying attention.

On Bitcoin’s climb to a peak of $1,242 on Mt. Gox, at that time the largest Bitcoin exchange, per Bitcoin financial institutions started opening Bitcoin accounts, US Senate hearings were held and Chinese Banks OK’d Bitcoin as a form of legal currency. You couldn’t avoid Bitcoin and the idea of its explosive growth in the financial news sections. People expected Bitcoin to be well on its way to $2,000, $3,000 and more per Bitcoin.

And then it all stopped and Bitcoin would begin a steady slide down to $450. In our next article we will go into why. Stay tuned, and until then hop into some bitcoin slot games!