Top 13 Major Bitcoin Price Crashes: Endurance of An Idea

Published at: March 20, 2017

Bitcoin, an idea that originated in 2008, has since become a popular digital currency the world over, amassing a market value of under $20 bln. Since 2008, though, it hasn’t been an easy ride for the currency, which has experienced many highs and lows on its journey to acceptance.

Let’s take a seat then as we revisit some of Bitcoin’s major crashes up to the present day, with this handy infographic from Investoo, a learn to trade website.

According to legend, it’s believed that Satoshi Nakamoto initially began working on the idea of Bitcoin in 2007. However, it wasn’t until 2008, that a paper by the elusive Nakamoto, Bitcoin: A Peer-to-Peer Electronic Cash System, was published.

On Jan. 3, 2009, the Genesis Block was mined, while the first Bitcoin transaction in block 170, took place between Satoshi and Hal Finney, on Jan. 12, 2009, kicking off what has been a roller coaster ride for the currency.

2011: Mt Gox hacking

It wasn’t until Feb. 9, 2011, however, that Bitcoin achieved parity with the US dollar, costing $1 per Bitcoin at Mt Gox. Yet, despite the Bitcoin.org website struggling to handle traffic at the news of Bitcoin’s parity, on June 19, 2011, the Bitcoin price fell $3 within minutes to less than $16 after the Mt Gox hacking.

February 2012: Paxum

A repeat incident took place again on Feb. 11, 2012, when the Bitcoin price dropped by $2 to around $4 after Paxum ceased accepting the currency.

March 2012: Linode

Several weeks later on March 1, the Bitcoin price plunged to $4.89 after 46,000 Bitcoin were stolen in the Linode hacking, at the time worth just under $230,000.

August 2012: Priateat40

Even though the currency rose slightly in the proceeding months of 2012, on Aug. 17, 2012, the Bitcoin price dropped by $3 to less than $11 after Priateat40 stopped Bitcoin payments.

April 2013: DDos attack

Over the proceeding months, Bitcoin price steadily rose as interest in the currency increased. However, on April 10, 2013, the currency crashed $60 to just $122 in what was reported to be an apparent distributed denial of service attack.

December 2013: China’s ban

Later in the year, on Dec. 5, 2013, People’s Bank of China bans Bitcoin transactions, causing the currency to nosedive $300 to $840.

February 2014: Mt Gox closure

On Feb. 7, 2014, Bitcoin records a $100 drop as major exchanges experience widespread DDoS attacks. Bitcoin miners and developers block size debate on Feb. 21, 2014 sees the currency plunging $30. While the announcement of the closure of Mt Gox on Feb. 24, 2014, causes Bitcoin to drop by around $57 to $550.

March 2014: IRS judgment

After the IRS declares Bitcoin as a property on March 26, 2014, Bitcoin plummets by $150 to $453.

January 2015: Bitstamp hack

Bitstamp suspended its service after a hack, which saw 19,000 bitcoin stolen; however, nearly a week later, it reopened.

August 2015: Scalability question

The currency continues to rise and fall over the next year and on August 19, 2015 Bitcoin price declines by $45 to $214 after the release of new client software XT Fork, in a bid to resolve the scalability question.

November 2015: Unicode

Despite a slight increase in price, it then fell by $50 to $334 as its sign was accepted into Unicode on Nov. 3, 2015.

January 2016: Hearn effect

After Mike Hearn terms Bitcoin a ‘failure’ on Jan. 14, 2016, the Bitcoin price records a $40 decline.

August 2016: Bitfinex hack

Later that year, the second-biggest security breach took place at the Bitfinex bitcoin exchange when hackers stole 120,000 bitcoin on Aug. 2, 2016.

2017: PBOC intervention

Fast-forward to 2017 and on the Jan. 5, Bitcoin plunges 31 percent to $889 as Chinese officials mull restrictions on Bitcoin transactions.

While it certainly hasn’t been an easy ride for the currency, the fact that it’s still here is a testament to the fact that people believe in the currency despite the setbacks it experiences.