Bitcoin has seen a rapid flux in its fortunes since the cryptocurrency’s launch in 2009.
It steadily rose until reaching a peak value of $1,242 per Bitcoin back in 2013. Soon after, it crashed down to a sub-$1,000 level and is currently hovering around $350.
Needless to say, the rapid rise and decline of the cryptocurrency’s value has made many millionaires while leaving many investors bankrupt. The period also saw a flurry of speculators betting on the fluctuations of the currency from minute to minute, cementing the doubts regarding its stability.
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Market and Regulatory Challenges
During this roller-coaster ride, Bitcoin has seen many ups and downs, apart from its valuation. The most notable controversy regarding Bitcoin comes from the fact that the cryptocurrency is not subject to normal financial regulations, and that it offers complete anonymity to the users. This has pitted many Bitcoin exchanges against regulators over accusation of financial fraud.
For instance, one of the largest Bitcoin exchanges, Mt. Gox, was shuttered in 2013 when it was accused of money transfer violations by the Department of Homeland Security. Silk Road, the famed dark web hub, was also notoriously associated with Bitcoin before being taken down