The 2013 Bull Run

In March 2013, the Cypriot government, facing a banking crisis, announced it would seize a percentage of bank deposits above €100,000 to fund a bailout. Ordinary people with savings in Cypriot banks woke up to find their accounts partially frozen.

It was the first time in the modern era that a European government had directly taken money from citizens’ bank accounts. The reaction was shock — and a rush to find alternatives.

Bitcoin, which had been quietly rising through early 2013, spiked dramatically. People who had never considered Bitcoin before were suddenly reading about it. The narrative — a money that no government could seize — had found a perfect, real-world demonstration of why it mattered.

By November 2013, Bitcoin hit $1,000 for the first time. From $13 at the start of the year, it had increased roughly 7,600% in twelve months.

The mainstream press noticed. Bitcoin appeared on the front pages of major newspapers for the first time as something other than a criminal novelty. Senate hearings were held. The word “cryptocurrency” entered common usage.

And then, as had happened in 2011, the price crashed. By early 2015, Bitcoin was back below $200.

But something had permanently changed. The network had survived its first moment of genuine mainstream attention. The idea had escaped its original community. Millions of people now knew what Bitcoin was — even if most of them had only learned about it to dismiss it.

The seed was planted. The crash just pruned it.

Tomorrow: Day 100. A letter.

— The Daily Bit