2017 was indeed a great year for Bitcoin holders as the price increased immensely from as low $1000 towards the beginning of the year to an almost whooping sum $20,000 by the end of 2017.
With the great rise came a mighty fall as well, as the present price of Bitcoin seems to be groping between $9000 and $11000.
As the saying goes, “there is no smoke without fire”.
Former Cryptocurrency giant Mt Gox was the largest Cryptocurrency exchange site. It handled at least 70% of all crypto exchange trading activities until 2014.
The exchange site was hacked into by unknown thieves who made way with 850,000 bitcoins which were worth $450 million at that time.
Fortunately, the company was able to recover 200,000 bitcoins.
Change is the only constant thing
As the years rolled by, the world became more aware of the benefits of and advantages of Bitcoin. More people started to join the Crypto trend and this led to a rapid increase in the price of Bitcoin.
That 200,000 bitcoin is not worth more than 850,000 bitcoin that was stolen back in 20914 200,000 bitcoin is not worth more than 850,000 bitcoin that was stolen back in 2014.
The company hired Nobuaki Kobayashi to sell the recovered amount of Bitcoin and settle those whose Bitcoin was affected by the theft from the proceed of the sales.
True to their plan, Kobayashi has generated $400 million from the sale of some of the Bitcoin with $1.9 billion worth of Bitcoin left to sell.
The Hodlers Cry
It is believed that Kobayashi sells the coin on an exchange giving him the spot market price which tanks the price of Bitcoin any time he sells massively making the price drop painfully.
“Nobuaki Kobayashi is some kind of special moron selling the bottom of a correction pushing the price down”, an angry hodler posted on his Reddit’s r\ Bitcoin page.
They believe that Kobayashi should have made use of an auction or private sales so that it would have been sold at a higher price instead of using an exchange.
Battle of Opinions
“So if bitcoin market wants to grow up we can’t whine about stuff like this. Let’s say somebody is tasked with selling 200k shares for XYZ company. They’re not going to find an OTC buyer because they don’t want to tank the price.
This is just a market being a real market. Is someone dumping coins? Market reacts. Is someone buying coins? Market reacts.
Yes, this shows that the order books and liquidity for major bitcoin exchanges are very low. That’s not a good thing. It means anyone with a relatively small accumulation of coins can tank the market at any time.
But it is what it is, and complaining that a lawyer tasked with converting coins to fiat at market prices did exactly that is ridiculous”, curioustraveler123 shares his own opinion.
It should be noted that bitcoin is not a physical object but a virtual currency. It is nothing but a price. This price is and will always be determined by the forces of demand and supply of bitcoin.
Presently, we can do nothing but hope that this is only a phase that soon fades away. Also, like every other obstacle of the past. Bitcoin would also scale this and bounce back.