Depressions and crises will inevitably happen in the all the aspects of our lives. However, the most common ones come from the financial sphere. This article will tell you about the downfalls in one of the most trending segments of the market according to bankers – Bitcoin cryptocurrency. Starting from the early days of the cryptocurrency, different scenarios were predicted for Bitcoin, and the most widespread one was failure. The short life of the cryptocurrency witnessed at least 5 different downfalls, which we’ll highlight below.
Spring 2013 – the time when the market crashed
In spring 2013 the value of Bitcoin turned a complete disaster, since it decreased from $230 to $67 during one single night, which in total was equal to a 71% decrease. It took Bitcoin about 7 months to return to the previous normal value. But why did it happen?
The reason for this crisis is considered the very first expanse of the cryptocurrency, as this was the exact period when Bitcoin started integrating with the major financial trends. According to the info from casinoglobal.info, approximately the same time Bitcoin casinos started to pop up, and thus the demand for Bitcoin began to grow. Don’t forget, that in 2013 none of the cryptocurrencies could even surpass the 30$ value-limit; it was Bitcoin that managed to reach $200 through the effort of mass media. Then again, the downfall of March 2013, put the whole world up to the opportunities Bitcoin could offer.
The huge bubble of 2013
After reaching the 120$ limit in 2013, Bitcoin continued to keep near this value throughout the whole year. However, in Autumn, Bitcoin suddenly increased 10 times to reach its maximum in the end of November: the exchange rate for the cryptocurrency rose beyond $1000. But in the middle of December already, it’s value decreased to $300 and even below. After that it took Bitcoin several years before it could increase at least twice. So, the decline of 2013 can be attributed to the fact, that the exaggerated value of the end of 2013 was little more than a classic “bubble”. The existence of this kind of bubble can be explained by the hyper-enthusiasm of amateur-investors. They literally jumped all over at Bitcoin; basically, even experts started to give more positive outlooks for this currency, even though that they had considered it very underground and criminal before.
Bad news from Mt. Gox
It just so happened that Bitcoin reached its maximum profit after the famous 2013 bubble; however, in February, its prices decreased almost twice and returned to $439, which was the beginning for the long depression of Bitcoin until the very end of 2016. So the depression of 2014-2016 can be actually put down to the hacking of famous long-established Bitcoin exchange – Mt. Gox. On February 7, the exchange simply stopped processing money withdrawals. Later, it was announced that hackers managed to steal 850 000 in Bitcoin. This incident cast a pall over the whole crypto-industry and raised many question about the reliability and security. Moreover, the hacking also affected badly the liquidity position of the cryptocurrency. By the way, failed Bitcoin exchange Mt. Gox CEO Mark Karpeles indicted for embezzlement.
Bitcoin “clearance” in summer 2017
In the beginning of January, 2017, Bitcoin managed to reach the $1000 limit and jump over it for the first time after several past years. From then on, Bitcoin started to grow at a quick rate and by June its rate was $3000. However, a month and a half later, in July, Bitcoin shrinked to return to $1869. The reason for that were the rumors behind the cryptocurrency. After the first Bitcoin boom, many people started to suspect the code of being wrong and miscarried. If comparing to other currencies, Bitcoin was technically slower, and its major developers simply couldn’t agree on the software updates. This situation could lead to the possible “fork” – independent development on the projects – which would have probably created two separate versions of iconic block chain Bitcoin. This has also lead to wild swings on the Bitcoin market and eventually resulted in downfall. In August 2017, the Bitcoin industry was introduced another rival company – Bitcoin Cash. But in the end, it was considered as a significant threat to Bitcoin in the long run.
China is to blame for everything
After the fears of fork penned out, there was another mind-blowing breakthrough, which raised its value up to $5000. Bitcoin managed to maintain its record-breaking value for 2 weeks and then drop at 37%. The decline lasted for 3 days only; the cryptocurrency soon started to gather momentum again. Rumor had it that it was China to blame for the last crisis, as its government had been planning to forbid Bitcoin following the announcement of the famous BTCChina exchange to stop all the Bitcoin turnover as soon as possible.
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