Will Mt. Gox bring Bitcoin’s prices down…again?
Mt. Gox was a Bitcoin exchange that handled over 70% of all BTC transactions worldwide, back in 2014.
They’re kind of like ‘the East India Trading Company of crypto.’
(Massively valuable at some point in history, but now dissolved).
If you don’t know the full story, it’s crazy. Here what happened in 3 bullet points:
Launches in 2010.
Becomes the dominant global BTC trading platform.
Ceases operations with at least 200,000 stolen Bitcoin, in 2014. (Worth ~$4B, today).
Which, of course, led to years of lengthy court battles - until late last year, when a settlement was approved which would allow the return of 140,000 BTC.
...and the BTC is about to start being released, back into the wild.
So the question is, with 140,000 BTC (worth ~$2.8B) moving back into people’s wallets, won’t that push prices down by the very law of supply and demand?
Yep! It could certainly do some damage.
The good news is:
The big brains that created the settlement plan recognized this, and baked a solution into the deal.
They’re releasing the BTC back to creditors in tranches, which is a fancy financial way of saying:
They're drip feeding Bitcoin back to the people they owe, so they can't dump it all at once.
Smart!
