The Rise And Down Fall of The Mighty Mt.Gox.
Mt.Gox, The Japanese Bitcoin exchange has been a long standing member of the Bitcoin Community as one of it s more prominent institutions. It also has been going through one of biggest headache inducing ordeals any biz can go through. During Friday, the exchanged had announced it had to declare bankruptcy.
The History of Mt.Gox
Not many Bitcoin users where surprised with this announcement due to the recent amount of problems they have had since the beginning of the new year. Back in 2011, the value of bitcoin had elevated from a measly $1 to an amount of $32. Much of this trading was done through Mt.Gox, which had been unable to to handle the huge demand. The servers began to freeze under the huge traffic, leading towards the trigger that collapsed the currency’s value, leaving one bitcoin to be only worth $2 during November. History repeated itself during 2013, as prices for a single bitcoin began to soar high from its $13.50 to $266, Mt.Gox Servers struggled against the strain of traffic, leading towards another wave of panic that dropped the price back towards a sum of $50.
The Beginning of The End.
The excess amount of demand leading towards an over crowded the crash of another server where the least of their problems. Mt.Gox had another even more serious problem. During the year before, the exchange announced a deal between a Bitcoin startup named CoinLab to manage its North American Trading. Unfortunately the deal went down under leading CoinLab to file a $75 million lawsuit against Mt.Gox. Later during August, the U.S government seized a large sum of $5 million funds from Mt.Gox for failing to comply with money laundering laws.
While This continued to happened, customers where have a difficult time accessing their money from the exchange. August led Mt.Gox announcing a two week suspension of any withdrawal. Since its passing withdrawals request had begun to process even slower then before, leading towards a large amount of customer complaints.
During the early months of February Mt.Gox had announced a suspension of bitcoin withdrawals once again. This set price of bitcoins the exchange had into a spiral of loss. Customers where only able to withdraw a fraction of their money back, some didn’t even get one coin back.
The Good News.
With all this bad news come some good news for the Bitcoin community, Mt.Gox is luckily not the only exchange to exist. While Mt.Gox has gone down the recent drain in popularity, other exchanges have taken its place as top dogs. Sources from Bitcoincharts.com have shown the most popular exchange at the moment is a European firm named BitStamp. While bitcoins have decreased towards less than $400 on Mt. Gox, bitcoins on other available exchanges are going for around larger sum.