Since the beginning of 2021, Bitcoin has almost doubled in value. Since its emergence in 2009, the currency has seen ups and downs, but it is now attracting millions of investors. The biggest exchanges like Coinbase allow you to turn Bitcoin into US dollars and withdraw quickly. This hasn’t always been that easy. Here is how the BTC-USD exchange evolved over the past decade.
The First Service
The New Liberty Standard launched in 2009 was the first system for buying and selling. Back then, 1 US dollar was worth roughly 1,309.03 BTC. The rate was essentially based on electricity — i.e., the amount of energy mining required.
Soon after creation, the service registered the first case of exchange to fiat. Sirius sold it 5.050 Bitcoins for $5.02. This was a PayPal transaction, and it reflected the first considerable growth in the Bitcoin value. At that moment, 1 US dollar equaled 1.010 BTC.
Birth of the Market
The creation of the Bitcoin Market was the second milestone. This portal was set up by dwdollar in early 2010. There, coins could be bought and sold between users via methods like PayPal. The payment system terminated its support of the exchange in summer 2011 due to suspected fraud.
The First Exchange
This platform was named Mt. Gox, and it emerged in mid-2010. Users could see Bitcoin’s volume, highs, and lows over the past 24 hours. They could check the parameters of the last price. This system also eventually fell apart after its users’ funds vanished.
Similar platforms began to emerge. BritСoin and BitMarket.eu allowed conversion into the pound and the euro, respectively. Hacking attacks became rampant, causing the demise of many such services.
Growth of Exchanges Around the World
At the moment, there are thousands of exchanges worldwide (13,000+). More and more countries are beginning to regulate transactions. Asia (specifically, Japan and South Korea) is the most progressive region. On the other hand, Malta, Estonia, and Switzerland have the clearest laws for user protection.
In the United States, such platforms are allowed to operate, but local legislation lacks clarity. Kraken, created in 2011, became the first official US-based platform. Today, it is one of the biggest and most respected systems worldwide.
Another large exchange, Coinbase, appeared in 2012. It allows users to buy and sell Bitcoin, Ethereum, and other altcoins. Other big names are Bittrex, Poloniex, Coinmama, etc.
Converting BTC to USD in 2021
Today, one may sell Bitcoins for dollars and withdraw them to a bank account online. The biggest platforms like Kraken or Cex.io make these operations almost effortless. They offer many cryptocurrencies aside from BTC, such as Ripple and Ethereum.
Clearly, modern security measures are a huge leap forward from the systems of the early 2010s. Users may buy, sell and exchange their coins for US dollars safely. Advanced verification, encryption, and offline storages give them peace of mind.