What was the price value of bitcoin?

[iBaba]

Nowadays we all know that when a new coin is launched, it has an initial value, whether it is listed on an exchange or before.

But was this the case with Bitcoin? Bitcoin's starting value was 0. Maybe how did it create a value through the first trading? I know about the pizza 10k btc is that the first trade with bitcoin? And at this time, did the price of bitcoin introduced, like 0.06$?
I know that the matter is not that important, but I have curiosity while working on a purpose, so I tried to find out here.

Bitcoin did not really have a fixed price when it started, people were mining bitcoin and there was no proper market where you can say 1 bitcoin was worth a certain amount of dollars, the 0.06 dollars came much later.

The initial attempt to give bitcoin a dollar value was based on the cost of electricity used for mining and people started trading their bitcoin for money which slowly helped create market price. So the 10 thousand bitcoin pizza transaction happened in 2010 and it was not even the first time to trade bitcoin, it is famous because it was one of the first time bitcoin was used to buy physical good in the world. Also the interesting part is that bitcoin price was not announced one day, people started giving it value gradually by exchanging it for money, good and service

[m2017]

Nowadays we all know that when a new coin is launched, it has an initial value, whether it is listed on an exchange or before.

This is the price the seller has set for the coin. However, this price doesn't determine the coin's actual current value, which is driven by demand. More often than not, these initial asking prices drop sharply once sales begin, revealing the true market value.

But was this the case with Bitcoin? Bitcoin's starting value was 0. Maybe how did it create a value through the first trading? I know about the pizza 10k btc is that the first trade with bitcoin? And at this time, did the price of bitcoin introduced, like 0.06$?
I know that the matter is not that important, but I have curiosity while working on a purpose, so I tried to find out here.

Bitcoin's price was determined in exactly the same way as the price of any other market good or service, that is, by the market itself, specifically through the interaction between buyer and seller. Initially, there were few people interested in buying bitcoin, so sellers could not sell the asset for, say, $1,000. Now, however, the situation is the exact opposite: you will not find a single seller willing to part with bitcoin for $1,000, because demand vastly outstrips supply (as it is a limited asset).

[yudi09]

Nowadays we all know that when a new coin is launched, it has an initial value, whether it is listed on an exchange or before.

Ultimately, they just end up as worthless clutter in one's wallet.

Newly launched coins often come with a price tag and are marketed to suggest their value will skyrocket in the future. Yet, the reality is that there are countless coins on the market—aside from Bitcoin—that eventually amount to nothing more than a pile of junk.
The result? People who chase after these coins end up dismissing all of them as scams.
As for Bitcoin, I would argue that its value is limitless, provided the laws of supply and demand remain in effect.

[Charcol]

The case of buying a pizza with 10000 btc may be a famous commercial use. But before that, I read that Satoshi Nakamoto himself probably sent Bitcoin to someone. That person's name was Hal Finney. So I'm pretty sure that buying a pizza wasn't the first transaction.

Even $0.06 wasn't the very first price of Bitcoin. I read that in 2009 (in New Liberty Standard) about 1309.03 Bitcoins were calculated against 1 dollar. From this, I was pretty clear that the price of one Bitcoin was much less than one cent at that time. Later, the price gradually increased due to everyone's interest, transactions, the creation of buyers and sellers in the market and everyone's use.

https://www.reuters.com/article/technology/factbox-ten-years-of-bitcoin-idUSKCN1N50GE/

[Tongley]

When Bitcoin first came to the market, there was no exchange and everyone bought and sold directly. Just like you said about buying pizza, everyone bought directly at that time. But we didn't have to wait very long, in 2010, an exchange called Bitcoinmarket.com was launched.

The main purpose of creating new coins or altcoins is usually to make money or to trick everyone into cheating. But the main purpose of creating Bitcoin was to decentralize financial management and use Bitcoin as a payment system.

If you are interested in learning more about this topic, you can definitely read the comments of many old members of this forum and get some information from here.

[CryptoHeadlineNews]

but become jealous after seeing how much Bitcoin was being sold for many years ago. It was so cheaper than now and it feels like I'm over paying.
 

That's not true, because I have watched several interviews which Laszlo granted in respect of his 10,000 BTC for 2 pizzas, and he clearly stated that he never for once got jealous for selling his bitcoin at that exact price. Because it is obvious for everybody to might have felt bad, but he choose to be positive as the person to have officially made the first bitcoin transaction. And secondly, it true that Bitcoin was cheaper back then in 2009/2010, simply because it have zero or little demand for it, unlike today that its demand is very high, and people use it for for trading and also the most preferred alternative for long term investment. And the value of the 2 pizza which Laszlo bought was $41, which means one pizza would have been $20.5 each, worth 5000 BTC.

[Curious T]

Let's not blame the newbie for bringing up a post like this that has a history of supply and demand written all over it and is available online from various sources, yet such a question is brought up without doing personal research.

I read all the replies from the beginning down to your post, and I didn't see anybody blaming the newbie for asking such a question. I don't even consider the question ridiculous because it's a valid question. There's no point saying he should have done personal research. Is it to understand things like this that the forum was made for, or am I missing something?  

The famous 'pizza day celebration' is one to begin with when talking about how the price of Bitcoin rose to become valuable and there's the first exchange of which was Mt.Goz who launched their first order book in July 2010.

No, Mt.Gox was not the first exchange, Bitcoinmarket was the first exchange.

There's more examples, but more research can be done to get the right and exact information you need OP.

If you didn't have the answer to his question, you could have kept quiet and read the replies instead of telling him to go do research when asking questions is part of research.

[ImGenius]

According to Reddit, the first trade was in October 2009, where somebody bought 5050 Bitcoin via PayPal for $5.02:

Just for five dollars, a seller agreed to sell 5,000 Bitcoin. A person sell something only when he is desperate or when there is profit. Surely he made a profit from this because no one easily sells something at a loss. This means that it proves how easy it was to mine Bitcoin at that time that a person would sell such a large amount of Bitcoin for just few dollars. Thinking about it now is a pure fantasy 

[348Judah]

But was this the case with Bitcoin? Bitcoin's starting value was 0. Maybe how did it create a value through the first trading?

The increasing rate of buying and selling make it value increase, and there keeps coming high demand for knowing and buying Bitcoin; this similar model is what other commodity assets are being rated with value. Once there is an increase in the adoption rate, demand increases as well as its price, and this is how we keep going over it.

[decodx]

The famous 'pizza day celebration' is one to begin with when talking about how the price of Bitcoin rose to become valuable and there's the first exchange of which was Mt.Goz who launched their first order book in July 2010.

No, Mt.Gox was not the first exchange, Bitcoinmarket was the first exchange.

It's also worth mentioning the New Liberty Standard, which predated Bitcoinmarket exchange. This may be disputed among some regarding the true definition of exchange as it never had any dynamic pricing or order books. However, it did allow the exchange between dollars and bitcoins and vice versa, so to me at least that suffices the definition of an exchange.

[Nwada001]

The increasing rate of buying and selling make it value increase, and there keeps coming high demand for knowing and buying Bitcoin; this similar model is what other commodity assets are being rated with value. Once there is an increase in the adoption rate, demand increases as well as its price, and this is how we keep going over it.

Is it when there is an increase in price that raises the demand, or when demand increases, will the value follow up and increase? I believe demand triggers price increases and not the other way around.

Bitcoin's value back then from many sources here was not actually determined by anything directly but by what someone felt the volume they wanted to acquire was and what they paid for it as long as the seller agreed with it.

[Jaycoinz]

Bitcoin's value back then from many sources here was not actually determined by anything directly but by what someone felt the volume they wanted to acquire was and what they paid for it as long as the seller agreed with it.

So you are saying it was plain on the agreement between the seller and buyer?

Like if their wasn't a valued market, someone can decide to buy something worth of x amount of $ with a certain x amount of bitcoin and the trade would be successful if the both parties come to terms of agreement? Or am seeing this wrongly?.

[Faisal2202]

Zero.

Your mistake is comparing bitcoin (an actual peer-to-peer digital cash) with altcoins (pump and dumps created for profiting).
The first thing altcoins do is get their coin listed somewhere and attach a price tag to it because the main objective they had for creating that altcoin was for it to be traded for profit making. But that was never bitcoin's objective. Satoshi didn't invent Bitcoin for people to trade it on some exchange or swap it for fiat and make profit from its fluctuations. It was invented to serve as a payment system, so it never needed that "price tag" the way altcoins do.

Besides, there was no exchanges back in 2008-2009 for Satoshi to list bitcoin on and announce its "trading" open. It was an experiment to see if a global digital peer-to-peer money can exist. Slowly as the adoption grew, bitcoin gained a natural value (that continues growing to this day) then it got a price tag.

I can't agree more with you and honestly the core idea behind BTC was very simple and honest, that it did not come up with a price tag, these days any coin/altcoin we see they come up with their price tags. The question from OP is so generic that he thought every coin has always come up with a price tag, because when you don't know the history and see every altcoin coming up with a pre trading price, and then pre sale price, then listing price and many other prices, people tend to think maybe this is the typical normal way of listing and of a token to get a price.

Not knowing BTC did not come that way, only the altcoin listings have made this trend.

So it is not that Satoshi had some pure vision also, he also expected it to be tradeable. In many statements, he expressed that and why it was made for, it is that Bitcoin was designed to be useful with or without a price tag, and everything after it was mostly designed backwards from the price tag itself.

[Nwada001]

Bitcoin's value back then from many sources here was not actually determined by anything directly but by what someone felt the volume they wanted to acquire was and what they paid for it as long as the seller agreed with it.

So you are saying it was plain on the agreement between the seller and buyer?

Like if their wasn't a valued market, someone can decide to buy something worth of x amount of $ with a certain x amount of bitcoin and the trade would be successful if the both parties come to terms of agreement? Or am seeing this wrongly?.

Yes, that's what I meant and said based on what I understood from this source. It's just like when something doesn't have a defined value yet in the market and someone somewhere wants to experiment on it, if you have it and feel others also do, the person can come to you and approach you, asking you how much you can give them the stuff; it's left for you to decide on how you want to sell it.

[The Cryptovator]

But was this the case with Bitcoin? Bitcoin's starting value was 0. Maybe how did it create a value through the first trading? I know about the pizza 10k btc is that the first trade with bitcoin? And at this time, did the price of bitcoin introduced, like 0.06$?

All the coins' prices exist at zero at the beginning when deployed. Because unless a coin is being traded, value won’t be measured by the price. I can’t recall what the price for Bitcoin was when it began its trading journey. As you mentioned about pizza, that wasn’t actually the beginning price.

From the Google search I discovered the beginning price was $0.00099 when Bitcoin started trading. So that is the possible value in price that time.