The history of cryptocurrency (2): The addition of Ethereum and the surge of Bitcoin

Source: CoinTelegraph; Compiled by: Deng Tong, Golden Finance

This article explores the period from 2013 to 2015 A critical period in the cryptocurrency world – a time of significant progress and notable challenges. During this period, Bitcoin became increasingly mainstream, marking a major shift in people's understanding of digital currencies. However, this era also witnessed the dramatic collapse of Mt. Gox . Reflects the risks and volatility of the emerging cryptocurrency market.

View related content: "Tracking the History of Cryptocurrency (1): Nakamoto Satoshi's Response to the Financial Crisis"

This era also saw the first memecoin and the emergence of the first non-fungible tokens (NFTs), these innovations expand the creativity and functionality of the crypto space.

Most importantly, this was the period when the Ethereum network was conceived. This groundbreaking development promises to use blockchain technology for more than just currency, paving the way for smart contracts and decentralized applications (DApps). This period was critical in shaping the trajectory of the cryptocurrency movement, setting the stage for future innovations and challenges.

Bitcoin continues to expand

The first Bitcoin in 2012 Shortly after the halving, BTC reached a notable milestone a few months later. On March 28, 2013, the price of Bitcoin climbed and began trading around $92. The price increase resulted in its market capitalization crossing the $1 billion mark for the first time, marking an important moment in the history of the cryptocurrency.

On April 10, 2013, during the banking crisis in Cyprus, Bitcoin hit an all-time high of $190 This event attracted widespread attention and achieved an extraordinary milestone. The crisis has highlighted the potential benefits of decentralized currencies, causingmany to view Bitcoin as a viable alternative to the vulnerabilities of the traditional financial system . Despite the initial surge, Bitcoin's value plummeted to $68 just a week after peaking.

Bitcoin price, source: CoinMarketCap

In late 2013, Bitcoin continued to outperform expectations. The price attracted market observers, and on November 19, first on the BTC China exchange (BTCC) and later on Mt. Gox, Bitcoin price reaches $1,000. The achievement underscores Bitcoin’s growing relevance and growing interest in its role as an alternative asset within the wider financial sector.

The fall of old giants and the rise of new exchanges

During this critical period, Mt. Gox, as the largest exchange at the time Cryptocurrency exchanges face significant challenges. On June 20, 2013, it announced the suspension of U.S. dollar operations, triggering two weeks of uncertainty. While withdrawals eventually resumed, the exchange struggled to process withdrawals efficiently, highlighting the operational hurdles it faced.

In the cryptocurrency community In a major development, Mt. Gox announced it was suspending U.S. operations, with Bitcoin withdrawals subsequently halted in February. This series of events eventually led toMt. Gox was suspended from trading on February 24, 2014, and filed for bankruptcy in Tokyo shortly after.

The situation escalated when Mt. Gox sought bankruptcy protection in the United States in March 2014. Mt. Gox revealed that 750,000 Bitcoins belonging to its customers and 100,000 of its own Bitcoins were leaked, resulting in losses at the time Approximately $473 million.

While the fall of Mt. Gox marks a tumultuous period in the cryptocurrency space, it also comes with the emergence of several platforms that will become major players in the future. Okcoin was later renamed OKX and began operations on June 1, 2013. Following this, Kraken’s trading platform began operations on September 10, 2013.

At the same time, Established in 2012's Coinbase received $25 million in Series B financing in December 2013, funded by Venture Capital Investment firm Andreessen Horowitz led the investment, which shows the growth and resilience of new entrants in the cryptocurrency trading space during turbulent times.

The arrival of Ethereum

In 2013, Vitalik Buterin introduced the Ethereum network through a white paper, bringing it Positioned as a multi-functional platform for developing DApps. Buterin outlined how blockchain technology can serve purposes beyond monetary transactions.

In January 2014, Ethereum co-founders Gavin Wood, Charles Hoskinson and Anthony Di Iorio held a conference in Miami Ethereum was launched with Buterin at the North American Bitcoin Conference.

Follow the history of cryptocurrency!

These exchanges now offer users a wide range of cryptocurrencies, with Ethereum, Ethereum’s native currency, solidifying its position as the second-largest digital asset by market capitalization. Ethereum delivers on its promise by evolving into a central platform for DApps.

The next article in the crypto history series will take a deep dive into the ICO boom and Ethereum’s continued evolution.