The Mt. Gox creditor debacle has cast a dark shadow over the Bitcoin industry. Some experts are concerned about how the situation will unfold. Affected victims are expected to be compensated in the near future, sparking some concern that it may trigger a market sell-off, although it is equally likely users will simply hodl their coins for the future.
Paying Back Mt. Gox Creditors
When the Mt. Gox exchange went offline, a lot of money was stolen from clients. Several years down the line, roughly $1 billion worth of funds has been recovered. This money resides in the control of the exchange’s trustee. It is expected the payments will begin trickling in over the next few weeks. Several thousand BTC will be distributed among victims of the defunct exchange.
Since the hack, Bitcoin’s value has increased significantly. Some market experts believe the creditor’s action will trigger major sales of Bitcoin. One “expert” even goes as far as claiming this process may collapse the Bitcoin market altogether. It is highly unlikely such a scenario will come to fruition. There is no real reason for victims to liquidate these incoming transactions. This is especially true when looking at Bitcoin’s price movements over the years.
A distribution of roughly 160,000 Bitcoin can cause all sorts of consequences. Some victims may very well be finished with Bitcoin and the entire industry. Others will see this as a lucky break. There is no indication recipients are preparing to liquidate vast amounts of Bitcoin. Additionally, a sale of $1bn worth of Bitcoin cannot crash the market under the current conditions. That amount represents less than 1% of Bitcoin’s total market valuation at this time.
To Sell or Not to Sell
Those who look beyond the sheer monetary value associated with the Mt. Gox creditor’s process will note interesting facts. Bitcoin is set to undergo several major development changes. All of these updates will improve the usability and user-friendliness of the world’s leading cryptocurrency. They may also trigger a price increase, though it remains unclear if that will be the case.
Upcoming changes include the Lightning Network and atomic swaps, among other things, Enabling instant and cheap transactions solves two of Bitcoin’s main “problems”. More convenience can ultimately lead to more widespread adoption among consumers and retailers alike. Financial institutions are also showing an interest in bringing cryptocurrencies to the masses. Those developments confirm cryptocurrency is here to stay.
Bitcoin is, and always will be, about much more than Mt. Gox. It is true the exchange plays a big role in the currency’s history. However, once the repayment process is complete, the chapter will be closed once and for all. It is well past time to look beyond this defunct exchange. The future looks promising for Bitcoin, at least for those with a long-term vision.
Are you a Mt. Gox victim who is seeking reimbursement? Will you sell or hodl? Let us know in the comments below.
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