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MtGox's Bankruptcy: What Happened and What Can We Learn From It?

Written By Ivan on Tech

May 26, 2020

In the early days of cryptocurrencies, the MtGox case was often brought up as a cautionary tale among crypto-enthusiasts. Specifically, MtGox was the biggest Bitcoin exchange to undergo a hack where most funds were stolen. How can you trust Bitcoin if these things may happen? This argument, which is very often used against cryptocurrencies, is somewhat misleading both for non-users and new users. In fact, poor understanding of the MtGox events is often behind the lack of Bitcoin education and generally, of lack of understanding crypto currencies.

The MtGox Scandal

So what was MtGox and what did really happen? At the beginning of 2014, MtGox was the biggest Bitcoin exchange in the world; its dominance was 70%. As such, its dominance was far more than today's biggest exchanges. It seemed to be destined to become the undisputed giant of this sector. Furthermore, the exchange is Japanese, as many suspect Satoshi Nakamoto (the creator of Bitcoin) might have been. However, in February...

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