which of the following is the oldest cryptocurrency exchange?
Which of the following is the oldest cryptocurrency exchange?
Answer:
To determine the oldest cryptocurrency exchange, we need to take a look at the history of cryptocurrency exchanges and their timelines. As of my knowledge cutoff in October 2021, the recognized oldest cryptocurrency exchange is Mt. Gox.
Mt. Gox: The Pioneer Exchange
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Founding:
- Mt. Gox was established in July 2010 by Jed McCaleb. Initially, it was a platform for trading Magic: The Gathering Online cards, which is where the name “Mt. Gox” originates (an abbreviation for “Magic: The Gathering Online Exchange”).
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Transition to Bitcoin:
- In July 2010, Jed McCaleb transitioned Mt. Gox into a Bitcoin exchange. This was a pioneering move as it was one of the very first platforms allowing users to trade Bitcoin.
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Expansion:
- By 2013, Mt. Gox handled over 70% of all Bitcoin transactions worldwide, making it by far the world’s largest Bitcoin intermediary and the leading Bitcoin exchange.
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Downfall:
- Unfortunately, Mt. Gox is also infamous for its downfall. In 2014, the exchange filed for bankruptcy after suffering from a series of hacks and subsequent loss of approximately 850,000 Bitcoins, which was a substantial portion of the total Bitcoin supply at the time.
Impact and Legacy
- Despite its eventual collapse, Mt. Gox is historically significant for having paved the way for future cryptocurrency exchanges. It highlighted both the potential and risks inherent in the cryptocurrency market, leading to increased focus on security measures in subsequent exchanges.
Subsequent Exchanges
- Following Mt. Gox, many other cryptocurrency exchanges have been established. Some of the notable ones include:
- Bitstamp (founded in 2011)
- Coinbase (founded in 2012)
- Kraken (founded in 2011)
However, none of these were operational as early as Mt. Gox.
Final Answer:
The oldest cryptocurrency exchange is Mt. Gox, established in July 2010.