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2011Dollar parity, boom and bust

Bitcoin reached parity with the US dollar, shot up to roughly $30 by June and then lost more than 90 percent of that value within months. It was the first full boom-and-bust cycle, and it also brought the first altcoins and darknet markets.

Year-end price (approx.)

~$4

Block reward

50 BTC

Mid-year peak

~$30

What happened

1. Feb 9

   Bitcoin reaches $1 on Mt. Gox for the first time.

2. Feb

   The Silk Road marketplace launches, giving Bitcoin its first large and controversial real-world use.

3. Apr

   Satoshi sends the last known private messages, saying they have moved on to other things.

4. Jun

   The price peaks near $30, then a security breach at Mt. Gox sends the exchange price crashing and shakes confidence.

5. Oct 7

   Litecoin launches, one of the first Bitcoin-inspired alternative coins.

Why it mattered

The 2011 crash set a pattern that has repeated ever since: sharp rallies, deep drawdowns, and the lesson that exchanges are a weak point.

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