On June 19, 2011, Bitcoin experienced a significant price crash, plummeting from $17 to below $0.01. This incident occurred on the now-defunct Mt. Gox exchange.
Bitcoin Crash and Its Consequences
The price drop resulted from a software glitch on the Mt. Gox platform, which permitted Bitcoin transactions at negative prices, leading to a temporary market collapse.
Historical Price Surge of Bitcoin
According to popular crypto YouTuber Lark Davis, this historic crash allowed some crypto enthusiasts to become wealthy. If someone had purchased Bitcoin for $100 at $0.01, their assets would now be worth around $1.4 billion, equating to a growth of 1,400,000,000%.
The Fate of Mt. Gox and Creditor Payments
In February 2014, Mt. Gox lost about 850,000 BTC due to a hacker attack, accounting for approximately 7% of all Bitcoin at the time. Partial recovery of losses to creditors began in July last year, with reports indicating that in late March, Mt. Gox transferred BTC worth approximately $1 billion.
The Bitcoin crash on Mt. Gox in 2011 left a lasting legacy in the cryptocurrency landscape, with its effects still felt in the market today. Investors and owners of dormant wallets continue to benefit from the volatility of prices.
