The exchange was compromised by a hacker who gained access to customer accounts and artificially pushed the price of Bitcoin on the exchange to $0.01.Įven though the crash to 1 cent was artificial, the hack resulted in a substantial hit to confidence in Bitcoin and played a major part in the 93% decline. The largest catalyst for this crash was the hacking of Mt.Gox, by far the biggest Bitcoin exchange at the time. Sources for chart: Buy Bitcoin Worldwide, 99bitcoins, CoinCodex June to November 2011: -93%įrom June to November 2011, Bitcoin plummeted from a high of $29 and finally bottomed out at $2. To try and gain a better understanding of Bitcoin’s current woes, let’s take a look at the five largest Bitcoin price drops in history and consider some of the causes and narratives that surrounded them. “When in doubt, zoom out” is becoming a bit of a tired phrase, but it does hold some merit if we consider that extreme price drops are not at all uncommon in the history of Bitcoin. After reaching an all-time high valuation of almost $20,000 in December of 2017, Bitcoin has spent the majority of 2018 bleeding value and BTC’s current price of $3,900 represents an 83% drop from its all-time high. While Bitcoin’s extreme volatility and scalability issues have made it increasingly difficult to argue for BTC as a replacement for fiat currency, the sheer robustness of the Bitcoin network is now widely being used to make a case for Bitcoin as a store of value that could become a serious competitor to gold.Įven though there’s still a month left to go before we move on to next year, 2018 will most likely be remembered in Bitcoin history as a “bust” year. For now, the countless Bitcoin obituaries have turned out to be premature. Now, discussion surrounding Bitcoin has primarily shifted to Bitcoin’s booms and subsequent busts, which have led observers to proclaim the death of Bitcoin on several occasions. In the early days, Bitcoin had a very poor reputation in the mainstream, as it was most often discussed in connection with the dark web, where the unique properties of Bitcoin were leveraged to facilitate the infamous Silk Road marketplace, allowing users to buy a range of illegal goods with BTC. Ever since its inception in 2008 and public release in 2009, Bitcoin has been a highly controversial phenomenon.
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