TLDR
- In 2009, $1 equaled 1,309 BTC based on mining power costs.
- The first BTC value was set by developer NewLibertyStandard.
- Bitcoin now trades near $123,000, a 12-billion-fold increase.
- Armstrong predicts Bitcoin could reach $1 million by 2030.
Coinbase CEO Brian Armstrong has revisited a key moment in Bitcoin’s early history. Sixteen years ago, one U.S. dollar could purchase 1,309 Bitcoins, marking the first recorded dollar valuation of the cryptocurrency. The figure, estimated from mining electricity costs, represented Bitcoin’s earliest known benchmark in 2009.
Bitcoin’s First Recorded Dollar Valuation
Bitcoin’s first estimated exchange rate dates back to 2009, when one U.S. dollar equaled about 1,309 Bitcoins. The rate was published on a Bitcoin discussion forum by early contributor NewLibertyStandard. The calculation used the electricity cost required to mine Bitcoin on a standard computer processor.
At that time, Bitcoin had no trading platforms or market price. Transactions occurred between a small group of miners and developers testing the system. The rate was purely theoretical but served as the first recorded value linking Bitcoin to the U.S. dollar. This benchmark became a historical reference for the cryptocurrency community.
Early Mining and Cost Calculations
In 2009, Bitcoin mining was performed using central processing units (CPUs), which consumed measurable electricity per coin generated. NewLibertyStandard estimated the cost by calculating the average annual power use of a high-end CPU computer. He then compared this with the average residential electricity rate in the United States.
At that stage, Bitcoin’s total circulating supply was small, and block rewards stood at 50 BTC per block. The network processed very few transactions daily. The estimated valuation of $1 for 1,309 BTC was based purely on mining costs rather than supply and demand. It reflected the early technical experiment that Bitcoin represented before any market price emerged.
Armstrong Recalls Bitcoin’s Early Days
Coinbase CEO Brian Armstrong shared the historical data point on social media, reminding users of Bitcoin’s humble beginnings. “The people crazy enough to think they can change the world are the ones who do,” Armstrong wrote while referencing the early $1 valuation.
https://x.com/brian_armstrong/status/1974844387508043869
His post served as a reminder of how far Bitcoin has evolved in sixteen years. From being valued by electricity costs to becoming a global financial asset, Bitcoin’s growth has been extraordinary. Armstrong’s recollection resonated across the crypto community, reflecting on the early days when the currency had no market recognition.
From $1 to Over $120,000 in Sixteen Years
As of October 2025, Bitcoin trades near $123,000 per coin, according to CoinGecko data. The increase from the 2009 valuation represents more than a 12-billion-fold rise. Over time, Bitcoin gained recognition as a decentralized digital asset, attracting institutional investors, financial institutions, and regulators.
The launch of Bitcoin futures, exchange-traded funds (ETFs), and corporate adoption has expanded its role in the financial system. Armstrong has stated that growing regulatory clarity could support Bitcoin’s continued rise. He has predicted that the cryptocurrency may reach $1 million by the end of the decade, citing greater mainstream adoption and long-term market maturity.
Bitcoin’s early valuation, once based on mining electricity, now stands as a milestone in financial innovation. From its 2009 roots in a small forum to global markets, the cryptocurrency’s journey reflects both technological evolution and enduring investor confidence.
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