The story of Mt. Gox and the impact of the compensation process on Bitcoin's price is quite intriguing. Here's a comprehensive analysis:
History of Mt. Gox
- **2007:** Mt. Gox was created as a platform for trading Magic: The Gathering cards.
- **2010:** It transformed into a Bitcoin trading platform, becoming one of the first and largest exchanges.
- **2014:** The exchange declared bankruptcy after a series of hacks that resulted in the loss of approximately 940,000 BTC.
- **2024:** The compensation process for users began after recovering about 141,868 BTC and some Bitcoin Cash following the 2017 hard fork.
Impact of the Compensation Process on Bitcoin Price
- **Total BTC to be distributed:** 141,868 BTC.
- **Options available:** Users can receive their coins early with a 10-11% discount.
- **Expectations:** It is estimated that 75% of users will opt for early conversion, making the available number 94,697 BTC.
Distribution of Coins and Sales Impact
1. **Liquidation rights companies:** 20,000 BTC
2. **Bitcoinica users:** 10,000 BTC
3. **Individual users:** 64,697 BTC
Analyzing User Behavior
- **Individual users (around 20,000 people):** Each will receive an average of 3.23 BTC (approximately $180,000).
- **Sales expectations:** Many individuals are unlikely to sell the entire amount to avoid a hefty tax. Experts predict that only about 10% will be sold, which means roughly 6,500 BTC.
Comparison to Daily Trading Volume
- Considering the daily trading volume of Bitcoin, selling 6,500 BTC represents only about 6%, which might mitigate the impact on the price.
Larger Impact on Bitcoin Cash
- **Logically:** Many users might sell their BCH to secure liquidity before selling Bitcoin, as BCH might be considered more like an airdrop.
While the compensation process might create some selling pressure on Bitcoin's price, the expected impact is not substantial given the current market size. The larger effect is likely to be seen on Bitcoin Cash.