Bitcoin in 2013 and bitcoin progress story

Posted by Rohit Sharma
6
Jan 31, 2017
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2013: The world wakes up to bitcoin

2013 was one of the most tumultuous years for Bitcoin. It had two period of incredible volatility in which people literally woke up to almost 100% price increases.

 

The first occurred in early 2013. A bail-out deal between the EU and Cyprus included a levy on bank accounts with sizeable sums of money, inspiring Cypriot account holders to buy bitcoin en masse. The Bitcoin price almost doubles, and Cypress sets a precedent for using Bitcoin as a means of capital flight.

 

Bitcoin survived one of its first major crises of legitimacy this year: the shutting down of the Silk Road and the arrest of its founder. The government seized all assets and helped cement public association of Bitcoin with online black markets. After a quick price drop, the price quickly recovered, but Bitcoin has lived in the Silk Road’s shadow ever since, mining hub

 

Globally, governments began to take Bitcoin more seriously but reactions were mixed.

 

The People’s Bank of China, after initially approving Bitcoin, banned financial institutions from using it or working with customers whose businesses involve it.

The US Department of Homeland Security declared Mt. Gox a ‘money transmitter’ (a heavily regulated entity) and moved to seize some of its assets, bitcoin mining company

US Financial Crimes Enforcement Network (FINCEN) issued some of the world’s first bitcoin regulation in the form of a guidance report for persons administering, exchanging or using virtual currency. In particular, exchanges must comply with money laundering laws and register as Money Services Businesses.

The US Senate held a hearing which was (to the surprise of many) open to the long-term prospects of Bitcoin.

The second period of volatility occurred in November. In 30 days, the price went from just over $100 to just over $1200. Searches for bitcoin spikes. News outlets covered it. In 30 days, it went from a successfully digital currency proof-of-concept to a new technology in the eyes of the world. The price plummeted back down in December, but it never stayed below $200 again, top 10 bitcoin mining farms

 

The swell of popularity led to an explosion of “altcoins”—digital currencies based on modified or different underlying protocols. Litecoin had been the first, back in 2011, but 2013 saw hundreds of these new altcoins launch. Many turned out to be scams, but many are also still traded today.

 

As 2013 ended, the price of 1 Bitcoin was $764 and 26354 people viewed the Wikipedia page.
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