Bitcoin crash occurred for the third time in three months over the past weekend. The price of the leading cryptocurrency had been relatively stable for most of 2014 until Friday. According to the Inquisitr on Feb. 11, the Bitcoin price plunged from around $900 down to $500 briefly, then bounced back up to the $700 range.
While MtGox said they were suspending the customer withdrawals due to the fact that fraudsters were using Bitcoin to con people, Bitcoin proponents argued that the issue was with the way MTGox and others chose to confirm transactions, and not with the currency itself.
Bitcoin crash was precipitated by the announcement from Mt. Gox, the Tokyo-based exchange, that they had found a software glitch and were suspending withdrawals. Other leading exchanges such as London-based Bitstamp and even the recently popular Cryptsy have been suspending customer withdrawal transactions until further notice.
This particular Bitcoin crash was also effected by Russia's decision to prohibit the use of Bitcoin or any cryptocurrency by its citizens, just in time for the Sochi Winter Olympics. In December of 2013 China also greatly restricted the use of Bitcoin after the last crash of the budding alternative currency.
These shocks to the system are no more than growing pains. By making improvements to the underlying infrastructure at this early date, Bitcoin will emerge only stronger. Recently several high profile brands announced that they would accept Bitcoin. Overstock, the large online retailer started to accept the currency in early January. Just today the popular online services marketplace Fiverr announced that they would be accepting Bitcoin as well.
What do you think about the Bitcoin crash story? Please drop in your comments below.
Recent articles from this Examiner (click on the link to read):