Gox put bitcoins on the map – but not in a way that some would have hoped for. The Tokyo-based bitcoin exchange was launched in 2010 and managed nearly 70% of all cryptocurrency transactions in the world three years later. The site was founded by Jed McCaleb, who later founded Crypto Projects Ripple and Stellar. But he later sold before it ended.
In 2011, the site underwent its first number of multiple hacks, when bitcoin reached a $ 1 milestone. Later it was in fact frozen by the US banking system for regulatory issues and in 2013 it ceased trading, closing its website and filed for bankruptcy protection.
Silk Road was another stain on the reputation of bitcoin. The dark web market has facilitated transactions for firearms, drugs and other illicit goods, mainly with bitcoins. It became known as the currency of choice for criminals, which is still as categorized by those who doubt the role of bitcoins in modern finance.
The digital currency crashed after US law enforcement officials closed Silk Road. In 2015, his creator Ross Ulbricht was sentenced to life imprisonment. Many expected the application to dry up after closing the website. But in the following years, the opposite seemed to happen.
For some, government seizures in those years presented a buying opportunity. Venture Capitalist Tim Draper was among those who bought bitcoins in government auctions after the mountain. Gox has closed, and since then has called it "the biggest internet technology". Tyler and Cameron Winklevoss, who beat Mark Zuckerberg on the origins of Facebook, bought the cryptocurrency in 2013. Bitcoin reached almost $ 1,000 that year but it took until 2017 to actually break that price mark.
Cryptocurrency exchange Coinbase, recently valued at $ 8 billion, was founded in the same period in 2012. BitPay, the largest merchant services provider, started in 2011 and opened a space for traders to start accepting bitcoins.
The currency has made its way from the digital to the physical world with the first bitcoin ATM in a Vancouver cafe by 2013. But apart from the tricks, the use of bitcoins as real currency has not really been taken into account. A key part of this is volatility, since the value of cryptocurrency is known for the whiplash of hundreds of dollars in a single day.
Still, Overstock.com, Newegg, Expedia, Microsoft, Dish Network, OKCupid, CheapAir and Etsy are among the companies that have historically accepted bitcoins for certain payments.