The excursion into history. How did the legendary cryptocurrency exchange Mt.Gox

“Hi. I created a new Bitcoin exchange. I would like to hear your opinion.” These harmless words began one of the most infamous sagas in the early history of Bitcoin. Exchange called Mt.Gox, and she was destined to play a key role in the growth of the first cryptocurrencies. At least at some stage.

Magic and mayhem

Mt.Gox was the first exchange, though technically was created before Bitcoin. Jed McCaleb registered the domain mtgox.com in 2007, after several years the full name of the exchange was the phrase Magic: The Gathering Online eXchange.

However, in 2010, he read about Bitcoin on one of the forums. McCaleb was smart enough programmer. He realized that a Bitcoin exchange is better for his domain, which by that time already a few years lying idle. By the way, his first business for which the domain was registered, was not successful.

When July 18, 2010 McCaleb announced a redesigned platform on the Bitcointalk forum, the first reaction was restrained. Many forum users have reviewed the website but was not impressed. They didn’t understand why they Mt.Gox, if you already have Bitcoinmarket.com – the first exchange of this kind. Machalaba it was a simple answer.

Mt.Gox always online, the site is automated, works faster and is on a dedicated server. I think the interface is better.

And he was right.

“I can’t wait when Bitcoin will grow to $ 10”

At an early stage of Mt.Gox faced the same problem as Bitcoinmarket.com, – PayPal. Being one of the few Fiat systems that can easily integrate PayPal was a necessary evil for the early Bitcoin platforms. Soon he began to create more problems than it solved.

I really hope that Bitcoin will cause [PayPal] severe damage – fumed McCaleb. – I hate that they take 5.9 percent for implementation in their database, one simple user – UPDATE.

After completion of the site its liquidity has increased, and traders were treated to Mt.Gox supportive. “I like your exchange. Better not yet met,” the admired one trader.

In August 2010 a user forum was set machalaba to a potential problem: “What happens if someone hacks the website and finds a way to send all the BTC balances?” McCaleb then joked: “I’m not sure. If this is a bug in Bitcoin, it probably will have to solve questions with Satoshi :)”.

Eight months later, on March 6, 2011, McCaleb wrote a message entitled “Mt.Gox change owner”.

I created Mt.Gox just for fun, after reading about Bitcoins last summer. It was interesting and exciting. I remain confident in the bright future of Bitcoin. But to realize the full potential of Mt.Gox needs more time than I currently have. So I decided to pass the baton to someone who will be able to raise the site to a new level.

Next was a replica.

MagicalTux has already made a significant contribution to the Bitcoin community, and in many ways he will be able to deal with the site better than I do. Thank you to everyone who supported Mt.Gox. I can’t wait when BTC will reach $ 10!

Frame from the documentary “the Bitcoin Big Bang: an incredible Saga of Mark Karpeles”

Then McCaleb left and concentrated on the Ripple XRP cryptocurrency. Instead, the new head of the Mt.Gox was MagicalTux, today better known as mark Karpeles.

See also: the Greatest con man or businessman-loser. How does mark Karpeles after breaking the Mt.Gox.

So in the history of Bitcoin has begun a fundamentally new stage of development, which has not been without unfortunate consequences. However, even the hacking of exchanges and the loss of 850 thousand BTC are unable to slay the entire ecosystem: Bitcoin is still afloat and even preparing for the next bullrun. In our cryptodata get to find other cool details.

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