2012 was a year of steady, though less dramatic, growth and important technical development for Bitcoin. The most significant event was the first “halving” in November. 

A halving is a pre-programmed event in Bitcoin’s code that reduces the reward for mining new blocks by 50%. This event is designed to control the supply of new bitcoins and is generally seen as a bullish factor for the price in the long term. 

The price of Bitcoin started the year around $5 and ended it around $13.50, showing resilience and a gradual increase in value. 

The Bitcoin Foundation was also formed this year to promote the development and uptake of Bitcoin.

Bitcoin Milestones in 2012

• May: Bitcoinica, a Bitcoin exchange, suffered multiple security breaches, leading to significant losses.
• September 27: The Bitcoin Foundation was formed to support the development and adoption of Bitcoin.
• November 28: The first Bitcoin block reward halving occurred, reducing the reward for miners from 50 BTC to 25 BTC per block.
• Throughout the year: Bitcoin started to see more adoption by merchants and payment processors