Welcome to the History of Crypto, a captivating Cointelegraph series that takes readers on a journey through the major events that have shaped the cryptocurrency industry. Powered by Phemex, this timeline allows members of the crypto community to reflect on the important moments that have brought us to where we are today.
In this article, we will be exploring the years 2013 to 2015, a pivotal period in the world of cryptocurrency. It was during this time that Bitcoin (BTC) experienced a surge in mainstream adoption, solidifying its position as a recognized digital currency. However, this era was also marked by the infamous collapse of Mt. Gox, highlighting the risks and volatility inherent in the emerging crypto market.
But amidst the challenges, this period also witnessed the birth of the first memecoin and the first nonfungible token (NFT), two innovations that expanded the creative and functional possibilities of the crypto landscape.
Perhaps most significantly, this period saw the conception of the Ethereum network. This groundbreaking development aimed to leverage blockchain technology for more than just currency, paving the way for smart contracts and decentralized applications (DApps). The impact of this period on the trajectory of the cryptocurrency movement cannot be overstated, as it set the stage for future innovations and challenges to come.
Bitcoin, during this time, continued its impressive expansion. Just a few months after the first Bitcoin halving in 2012, BTC reached a major milestone on March 28, 2013, as its price surged to around $92. This increase in price propelled Bitcoin’s market capitalization to surpass $1 billion for the first time, marking a significant moment in the history of the cryptocurrency.
One event that captured widespread attention was Bitcoin’s achievement of a new all-time high of $190 on April 10, 2013, during the Cyprus banking crisis. This crisis highlighted the potential advantages of decentralized currencies, leading many to consider Bitcoin as a viable alternative to the vulnerabilities of the traditional financial system. However, shortly after reaching its peak, Bitcoin experienced a significant drop in value, falling to $68 within a week.
Later in the year, Bitcoin continued to captivate market observers by surpassing expectations and reaching $1,000 on November 19. This milestone was first achieved on the BTC China exchange (now known as BTCC) and subsequently on Mt. Gox. This accomplishment underscored Bitcoin’s growing relevance and the increasing interest in its role as an alternative asset within the broader financial landscape.
However, this critical period was also marked by the struggles of Mt. Gox, which was the largest crypto exchange at the time. On June 20, 2013, Mt. Gox announced a temporary halt of U.S. dollar withdrawals, sparking two weeks of uncertainty. Although withdrawals eventually resumed, the exchange faced difficulties in processing them efficiently, revealing the operational challenges it was facing.
In a significant turn of events, Mt. Gox announced the suspension of U.S. dollar withdrawals, followed by a halt to Bitcoin withdrawals on February 7, 2014. This series of events culminated in the suspension of trading on February 24, 2014, and a subsequent bankruptcy filing in Tokyo.
The situation escalated further when Mt. Gox sought bankruptcy protection in the United States in March 2014, revealing that 750,000 BTC belonging to customers and 100,000 of its own coins had been compromised, resulting in a loss valued at around $473 million at that time.
While the downfall of Mt. Gox marked a turbulent period in the cryptocurrency sector, it coincided with the emergence of several platforms that would become major players in the future. Okcoin, which later rebranded to OKX, launched its operations on June 1, 2013. Close behind, Kraken’s trading platform became operational on September 10, 2013.
Meanwhile, Coinbase, established in 2012, secured a $25 million Series B funding round in December 2013, led by venture capital firm Andreessen Horowitz. This showcased the growth and resilience of new entrants in the cryptocurrency exchange landscape during a time of upheaval.
In 2013, Vitalik Buterin introduced the Ethereum network through a white paper, envisioning it as a versatile platform for developing DApps. Buterin outlined how blockchain technology could be utilized for purposes beyond just financial transactions. It was in January 2014 that Ethereum was officially unveiled by co-founders Gavin Wood, Charles Hoskinson, and Anthony Di Iorio at the North American Bitcoin Conference in Miami, with Buterin leading the way.
Today, these exchanges provide users with access to a wide range of cryptocurrencies, with Ethereum’s native coin, Ether (ETH), solidifying its position as the second-largest digital asset by market capitalization. Ethereum has lived up to its promise by becoming a central platform for the development of DApps.
In the next installment of Cointelegraph’s History of Crypto series, we will delve into the boom of initial coin offerings (ICOs) and the ongoing evolution of Ethereum. Be sure to follow Cointelegraph for insightful updates on the most significant developments in the history of crypto.