$BTC

Bitcoin: From Obscurity to Hot Commodity—The Past, Present, Inner Logic, and Core Secrets of Success

Introduction

On January 3, 2009, when the first Bitcoin block—the Genesis Block—was mined on a small server in Helsinki, Finland, no one could have predicted that this experimental code would grow into a global asset worth approximately $1.7 trillion seventeen years later. From the early days when buying a pizza required 10,000 Bitcoins—considered a “virtual toy”—to now being included in the U.S. government’s strategic reserves, Bitcoin has undergone one of the most incredible transformations in human financial history. What exactly happened in between? What enables it to go from unnoticed to highly sought after? This article will deeply analyze Bitcoin’s legendary journey from the perspectives of its past and present, intrinsic logic, and core secrets of success.

1. Past and Present: From Cryptopunk Experiment to Global Reserve Asset

Birth Background: Rebels Born from the Financial Crisis

Bitcoin’s creation is inseparable from the 2008 global financial crisis. On November 1 of that year, a person claiming to be Satoshi Nakamoto published the Bitcoin white paper “Bitcoin: A Peer-to-Peer Electronic Cash System” on the P2P Foundation website. At that moment, the traditional banking system was severely damaged, and the global financial system was on the brink of collapse.

On January 3, 2009, Nakamoto inscribed an unchangeable message in the Genesis Block: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” This message served as both a timestamp and a declaration of Bitcoin’s original mission: to establish a trustless, peer-to-peer electronic cash system that fundamentally avoids the risks of centralized authority abuse.

Early Years: An Unnoticed Experiment

In its initial days, Bitcoin had no market value. When the first Bitcoin exchange, Mt.Gox, was established in 2010, Bitcoin’s price was less than $0.05. On May 22 of the same year, a programmer exchanged 10,000 Bitcoins for two pizzas—an event now commemorated annually as “Bitcoin Pizza Day.” At today’s prices, those two pizzas are worth over $800 million.

Back then, Bitcoin circulated only within the niche of cryptopunks, mined on home computers, and discussed on online forums. No one took it seriously, nor did anyone imagine it would someday become a globally recognized asset.

Volatility and Growth: From Speculative Bubble to Mainstream Acceptance

Bitcoin’s development has been full of ups and downs:

In 2011, Bitcoin first attracted mainstream attention, experiencing its first speculative bubble—rising from $0.5 to $13, then crashing 90%.

In 2013, Bitcoin saw its first explosive year, soaring from $13 to over $1,100, drawing global attention. However, a ban in China triggered a sharp correction, halving the price.

In 2014, the world’s largest Bitcoin exchange, Mt.Gox, filed for bankruptcy after losing 850,000 Bitcoins, marking one of Bitcoin’s darkest years.

In 2017, Bitcoin entered a frenzy, nearly reaching $20,000. But in 2018, it plummeted back to around $3,000, and mainstream media declared Bitcoin “dead” again.

A true turning point emerged after 2020. That year, institutional investors began entering the market, with companies like MicroStrategy and Tesla adding Bitcoin to their treasuries. The narrative of Bitcoin as “digital gold” started to solidify.

In January 2024, the U.S. Securities and Exchange Commission approved a spot Bitcoin ETF, opening a regulated channel for institutional capital inflow.

In March 2025, President Trump signed an executive order establishing the U.S. Strategic Bitcoin Reserve, holding about 200,000 Bitcoins as a national strategic asset, explicitly stating “not to sell.” This marked Bitcoin’s transformation from fringe technology to a national-level strategic asset.

In October 2025, Bitcoin hit a record high of $126,272.76. By February 2026, approximately 19.78 million Bitcoins had been mined, accounting for 94.2% of the total supply of 21 million, with long-term holders’ supply share rising to 79%.

2. Inner Logic: The Core Design Principles of Bitcoin

Proof of Work: The Fusion of Energy and Algorithms

Bitcoin uses a Proof of Work (PoW) consensus mechanism to maintain the consistency of its distributed ledger. Miners compete for the right to record transactions using SHA-256 hashing power, with the winner receiving block rewards and transaction fees. This mechanism converts physical electricity into a digital security budget.

Deeper down, Bitcoin is essentially an energy network. Each Bitcoin is the result of the combined action of physical energy and mathematical algorithms. The energy consumption involved in producing Bitcoin is akin to the process of gold formation—transforming natural scarce resources into assets. This energy conversion characteristic links Bitcoin to the physical world, making it far from a purely virtual network.

Halving Mechanism: Built-in Scarcity Engine

Halving is an embedded monetary issuance rule: every 210,000 blocks (roughly four years), the block reward is cut by 50%. The halving schedule is: 50 BTC → 25 BTC → 12.5 BTC → 6.25 BTC → 3.125 BTC (expected around April 2024).

This mechanism creates an anti-inflation supply curve. Bitcoin’s current annualized inflation rate is about 0.84%, lower than major global fiat currencies, and will approach zero around 2140. This absolute scarcity cannot be provided by fiat systems—central banks of any country can print more money, but no one can create more Bitcoin.

Fixed Total Supply: The Hard Currency of the Digital Age

Bitcoin’s total supply is permanently capped at 21 million. This limit is hardcoded in the Genesis Block’s code, and any protocol change attempting to increase supply requires over 95% consensus from the network’s hash power and nodes—an insurmountable threshold in practice.

As of February 2026, about 19.78 million Bitcoins have been mined, leaving 5.8% to be gradually released over approximately 114 years. This absolute scarcity sharply contrasts with gold: gold supply is still influenced by geological reserves and extraction technology, with marginal increases possible; Bitcoin’s supply curve is fully predetermined and unaffected by demand fluctuations.

Decentralized Network: A Trustless Value Network

Bitcoin has no central management authority; its network is maintained by millions of nodes worldwide. Even if a country enacts restrictions, the global application of Bitcoin remains largely unaffected, forming a distributed defense pattern of “East not bright, West bright.”

This design breaks the reliance on trust in centralized institutions typical of traditional finance, avoiding risks of human intervention, regional monopolies, and institutional collapse. Banks can freeze accounts, governments can confiscate assets, but no one can control the Bitcoin network. As long as private keys are kept secure, assets remain safe even if all exchanges shut down and all banks cease operations.

3. Core Secrets of Success: Multi-dimensional Resonance and Consensus

Bitcoin’s rise from obscurity to popularity is no accident. It results from the combined influence of multiple forces.

Energy Foundation: Deep Binding with the Physical World

The material foundation of Bitcoin is its core reason for success. Through cryptographic algorithms, it transforms natural energy into an immutable digital asset, becoming a “super digital battery” capable of permanently storing the value of natural energy.

This energy transformation creates a deep symbiotic relationship with the energy industry. Mining farms can be built in the Arctic’s cold environment, leveraging geothermal energy; or near waterfalls and nuclear reactors for stable, continuous power; or even dynamically shut down based on grid load, playing the role of an “energy shock absorber” in today’s increasingly renewable energy landscape.

This physical connection to the real world makes Bitcoin more than a virtual network—it is an entity participating in real-world social division of labor. This is also the fundamental reason why other cryptocurrencies struggle to serve as stores of value.

Algorithm Rules: Immutable Determinism

Bitcoin’s underlying design is extremely elegant: a cap of 21 million coins, 1MB block size, and a 10-minute block interval. These rules together form a stable value system.

The 21 million cap ensures scarcity; the 1MB block size allows ordinary nodes to easily store data, preventing network centralization; the 10-minute block interval balances transaction confirmation speed and security.

The unchangeability of these core algorithms has allowed Bitcoin to withstand numerous shocks over its more than a decade of development—whether it was the bubble burst from $20,000 to $3,000 in 2017, the liquidity crisis triggered by the bankruptcy of FTX in 2022, or tightening regulations worldwide, the Bitcoin network has always maintained stability thanks to its rule-based “constant barrier.”

Institutional Support: From Fringe to Mainstream

Bitcoin’s evolution into digital gold is inseparable from financial empowerment. The funds for building mining farms come from the financial system, and the involvement of traditional financial institutions has provided Bitcoin with mainstream trust.

The approval of spot Bitcoin ETFs globally in 2024 opened the door for traditional capital to enter Bitcoin. In 2025, the U.S. established a strategic Bitcoin reserve, elevating Bitcoin to an unprecedented level. This institutional backing has transformed Bitcoin from an experiment of cryptopunks into a national strategic asset.

Community Consensus: Anti-fragile Evolution

Bitcoin demonstrates a unique anti-fragile evolutionary capacity. Pressure and shocks not only fail to destroy the system but also serve as nutrients for strengthening the network. When Mt.Gox went bankrupt in 2014, the network quickly eliminated inefficient participants, guiding capital and users toward safer platforms; during the BCH hard fork in 2018 and the FTX attack in 2021, decentralized node clusters could identify vulnerabilities and synchronize fixes within hours.

More importantly, the confidence of long-term holders continues to strengthen. On-chain data shows that the share of long-term holders has increased from 63% in 2016 to 79% in 2026. When a hundred million holders are safeguarding their wealth sovereignty, this collective resilience far exceeds any static fortress built of diamonds or steel.

Conclusion

From 2009 to 2026, Bitcoin has traveled 17 years. It has endured countless 50% to 80% crashes, hundreds of “death proclamations,” and waves of regulatory pressure. Yet it remains standing, growing stronger.

Bitcoin’s secret of success can be summarized as: energy foundation providing material support, algorithm rules establishing trust, institutional backing promoting mainstream acceptance, and community consensus reinforcing anti-fragility. These four elements intertwine and reinforce each other, jointly creating the legendary rise of Bitcoin from obscurity to popularity.

Today, large enterprises include it on their balance sheets, governments regard it as a strategic reserve asset, and institutional investors trade through regulated products. This digital currency has proven that it can survive, adapt, and grow. Regardless of future price fluctuations, Bitcoin has completed its transformation from fringe technology to a foundational element of global finance—an incredible achievement for that experimental code from 17 years ago.