All along with the Cryptocurrency story, we have heard of individuals minting money. There were rags to riches tales aplenty and earlier cryptocurrency investors made it big. Real big. And why not? A combination of safety and ease of operation, sans the overarching enthusiasm of institutional bureaucracy, made it the darling of the masses. Blockchain became the byword for a technological miracle and newer areas of its usage we’re being explored. In the meantime, the world of cryptocurrency flourished. And how? After the advent of Bitcoins, numerous cryptocurrencies joined ranks. Litecoin, Thorium became synonymous with tech disruption and staggering profits. However, in 2017, Bitcoin crashed. From a high of $20000, it lists up to 75% of its value and went down under. However, over the years this has not been the only loss story, pertaining to cryptocurrencies. There have been a few others. Let us look at some of them:
Scaling Mt. Gox
The exchange which was handling almost 70% of all Bitcoin transactions, declared bankruptcy in early 2014, on account of a hacking operation which wiped off 850,000 coins or $500 million. The more recent valuation of that would be approximately $5 billion. A Tokyo District Court has directed the authorities to begin a civil rehab program, and that may bring some succour.
The Ripple Effect
Chris Larsen, the co-founder of Ripple, marched into 2018, with a total valuation of $60 billion. Ripple was being traded at $3.65 a unit. However, a golden rule in any business is to diversify which unfortunately did not happen here. Ripple tumbled and went down to almost 45 cents. That meant, almost $44 billion of personal wealth was wiped off Chris Larssen’s portfolio. Even though at $16 billion he is not exactly poor, however, it still remains one of the largest falls in the history of cryptocurrency.
Ripped Van Winkle
The Winklevoss twins are known for their association with Facebook. After moving out of the former they jumped right into the whirlpool called Bitcoin. 120000 coins were bought or 1% of all bitcoins in circulation. The year was 2012 and Bitcoin was valued at only $10. They were worth a whopping $2.34 billion. However, with the crash, they are now valued at $720 million. A loss of $1.62 billion. However, since the coins were bought at $1.2 million the impact had been not much. The brothers never broke a sweat.
In spite, of these setbacks, cryptocurrencies remain the future of financial transaction.