Bitcoin is dipping again so an impressive number of “crypto experts” are now declaring the death of the blockchain innovator, just like they proudly anticipated. Naturally, this causes even more agitation in the market with people being afraid for their investments.
Let’s talk about five situation when Bitcoin has previously crashed and was declared dead just so it can rise even more powerful.
The 2013 crash
The first major Bitcoin crash went down in April 2013 when the cryptocoin managed to hit mainstream for the first time in its existence. A good media coverage got Bitcoin up to $233 but then Bitcoin dipped back to $67 overnight. That’s a 71% drop, clearly a disaster for anyone that’s not used to trading in this market.
Except for, the coin went up again after several months.
The 2013 bubble
After spending the rest of the year at $120, Bitcoin jumped to $1,150 in late November just so it can go down again at $500 by December. Again, a huge crash that put the coin in standby for several years.
But what happened after that? Bitcoin managed to reach the $1000 mark once again. Except for…
The 2014 Mt. Gox calamity
A huge hack went down that generated yet another significant dip. Just when the coin managed to get some significant gain, the price went down once again in February 2014, from $867 to $439. That was a 49% drop that happened when Mt. Gox announced that a group of hackers managed to steal 850,000 bitcoins from their servers.
That impacted the coin’s value for years.
The 2017 split
Fast forward in 2017, Bitcoin broke the $1,000 barrier for the first time in years just to climb to $3,000 when all of a sudden it dipped 36% to $1,869 by mid-July.
What happened is that people got worried about the code that Bitcoin was running on, with currencies such as Litecoin and Ethereum being able to function more properly. As the developers never agreed on how to further develop the software, the coin encountered the first big fork, meaning second version of its canonical blockchain was created.
The second version is now called Bitcoin Cash.
The China crackdown
The worst was yet to come and in September 2017 the coin dipped once again 37% in September last year. Back then, rumors started circulating that China’s Communist government is going to ban trading cryptocurrency overall right after they had a major crackdown on ICOs (initial coin offerings).
This, of course, had a major impact on the market since China is a major player in the market. A conclusion? It’s not over yet so don’t panic.
Note: It was actually hard to pick just five scenarios since Bitcoin was declared dead more than 249 times up until this point, according to 99bitcoins.com.