Listicles

Is Bitcoin Dead? 6 Times You Thought Bitcoin Was Done

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The cryptocurrency market experiences wild swings almost daily. That said, there have been some spectacular “crashes” throughout the years. Here are some of the bigger price plunges that caused people to think it was all over.

1. 2011 Mt. Gox Hack

In June 2011 one Bitcoin traded at a mere $31. When Mt. Gox got hacked, the price flash crashed on this exchange down to a few cents. While the price recovered almost immediately on this exchange, this hack caused significant damage to Bitcoin’s reputation. This is the first bubble and by December 2011 the price had plummeted to $2. It took close to 18 months for the market to regain confidence in Bitcoin.

You can read more about this hack in Dan’s piece on the worst crypto hacks in history.

2. 2013 Rally and Crash

In April 2013, the price of Bitcoin rallied to $266, during which it encountered daily rises of 5-10%. By May the price crashed 71% overnight from $233 to $67! During this time Bitcoin started to receive significant media attention, which helped drive the price up. This correction may have happened due to declining consumer interest, or further Mt. Gox shenanigans. This time, it only took 6 months for the price to recover. Great news if you didn’t sell during the troubles.

3. November 2013: $1000

With the May 2013 crash wounds still fresh, Bitcoin’s price went stratospheric towards the end of 2013. The price rose from $150 in October to $1242 in November. Unfortunately, after breaking through the $1000 barrier, Bitcoin couldn’t sustain this price and the market reversed. By December, the price crashed down to $600, and then experienced several increases back to $1000 and crashes back to $600, before settling around $650. While $650 was still a significant increase over October’s $150 price, it was a huge loss if you purchased at $1000.

4. 2014: Mt. Gox (Again)

2011’s Mt. Gox hack was nothing compared to this hack and misappropriation of funds. This hack was so bad that Mt. Gox ceased to exist. The exchange closed and kept hold of a significant number of customer’s Bitcoins. In January 2014 the price had risen and stabilized at $800 – $900. When Mt. Gox closed in February, the price sunk to $600. In March false rumors about a Chinese ban extended the decline, and by April the price reached $340. Ouch.

This downward trend continued until reaching the bottom at $200 in March 2015. This almost year-long decline caused many to label Bitcoin as “the worst investment of the year”.

5. 2017 Rise and Fall

After the terrible 2014 and 2015 declines, 2016 was insignificant for Bitcoin. The price experienced some minor rises and falls, but there was no major news, skyrocketing prices, or huge slumps.

January 2017 got off to a bad start. Starting for $1150, the price fell 30% in one week to $750. The price hadn’t been this low for several months and after a stable 2016, this was a significant blow. The price recovered by March and continued to rise through until September where it broke $5000 for the first time. This was an exciting time for Bitcoin. The price had been rising for several months, there were more miners than ever, and media attention had never been higher.

By mid-September, China announced a crackdown on exchanges and ICOs. It looked like the bubble had burst again. The price sunk to $2900. Many declared Bitcoin dead all over again. People who purchased at the top lost a significant amount of money in less than two weeks. With the Chinese government out to get Bitcoin, how could it ever recover from this?

This crash saw the media and leading investment/banking figures turn against Bitcoin. They called it a scam. “It’s fraud” they proclaimed. This didn’t help the price either and caused many newcomers to cut their losses and sell at the bottom.

6. 2017’s Second Wind

Despite China’s best efforts, the Bitcoin price made a swift recovery. By October 2017 the price shot back up to a new all-time high of $5600, and it didn’t stop there. Bitcoin was back, and this time nothing could stop it. The next two months were very exciting for Bitcoin. China couldn’t stop it, the critics were wrong, and the price went ballistic.

By mid-December, the price reached its all-time high of $19,783, which is a crazy amount of money for one Bitcoin. Early adopters became very wealthy. Several new billionaires and many more millionaires arose, and everything looked great. The media interest was back, and so was the general public. Everyone from work colleagues to uncles were talking about Bitcoin, and you’d be hard-pressed to find someone who hadn’t heard about it.

By 22nd December, the price dropped 30% in one day. This decline continued, and by February 2018 it reached $6200 after dropping 50% in two weeks. 2018 continued to see weak to no interest in increasing the price, and many new investors lost a lot of money. Things looked glum throughout 2018, with many wondering if the price will ever go that high again. While the all-time high was not reached as of August 2019, Bitcoin’s price remains stable at $10,000.

Is Bitcoin Dead?

The king is dead, long live the king! Bitcoin has crashed so many times at this point, that it’s almost hard to keep up. The price is so volatile that you don’t know if this is an ongoing trend or a daily blip.

Bitcoin will go on to smash its previous all-time high price. These crashes have always seen a massive price increase sometime after, even if that’s several months or years. If you take advantage of these dips, you could make a lot of money. How much? Take a look at Dan’s piece on crypto rich list guide.

Disclaimer: This is not investment advice. Bitcoin and other cryptocurrencies are highly speculative. Nothing is guaranteed in cryptocurrency. Always perform your own research before investing and never commit more money than you are comfortable losing.

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Joe Coburn
Joe is a senior software developer with a degree in computer science from the University of Lincoln, UK. He is currently a Senior Writer for Blocks Decoded. Formerly, he was on the editorial team. As a writer at MakeUseOf, Joe has seen his work shared by Adobe, the Arduino Foundation, and Lifehacker. He has collaborated with Anker, BenQ, iStock, Ledger, Ultimate Ears, and many more. Joe loves all aspects of blockchain and cryptocurrencies, particularly the technical details.
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