2014 was dominated by the catastrophic collapse of Mt. Gox, which was at the time the world’s largest Bitcoin exchange. In February, Mt. Gox suspended trading, closed its website, and filed for bankruptcy protection after announcing that hundreds of thousands of bitcoins belonging to customers and the company were missing, presumably stolen. 

This event severely damaged public perception of Bitcoin and led to a prolonged bear market, often dubbed the “crypto winter.” Throughout the year, regulators worldwide grappled with how to approach cryptocurrencies, with some jurisdictions issuing warnings and others beginning to explore regulatory frameworks. 

Despite the Mt. Gox failure, development on the Bitcoin protocol continued, and some companies, like Microsoft, began accepting Bitcoin for payments.

Bitcoin Milestones in 2014

• February: Mt. Gox, the largest Bitcoin exchange, collapsed, claiming massive theft of bitcoins and severely impacting the market and trust in cryptocurrency exchanges.
• June: The US Marshals Service auctioned off bitcoins seized from the Silk Road.
• July: New York State Department of Financial Services released its proposed “BitLicense” regulatory framework, drawing criticism from some in the Bitcoin community.
• December: Microsoft began accepting Bitcoin for digital content.
• Throughout the year: Bitcoin’s price experienced a significant and prolonged downturn following the Mt. Gox collapse