Friday, February 7, 2014

Bitcoin in chaos

This week, the currency rate of Bitcoin is fluctuating.

Bitcoin is a digital money, which equips some unique characteristics. It is surprising that this global scheme is not controlled by any agencies. Nonetheless, or should I say due to the vacancy of governance, Bitcoin has become a huge and borderless system of currency. On the other hand, there are some issues of violation around Bitcoin.

My past entry: Bitcoin

My past entry: Bitcoin fraud case in New Jersey

Actually, the reliance as a currency of Bitcoin is still vulnerable. The value of Bitcoin dramatically increased by ten times in the last year. After China decided to forbid the deal of Bitcoin, it was halved immediately.

Recently, the rate of Bitcoin kept stable for a couple of weeks at the level of 1 BTC = $1000. It relieved people who were willing to utilize Bitcoin.

TechCrunch: Bitcoin’s Recent Price Stability Could Point To Growing Maturity

Then, all at sudden, it fell down by 30% in this week. There seem to be some reasons regarding this slump.

First, Apple stopped exhibiting the applications dealing with Bitcoin. Blockchain, the most famous digital wallet and related softwares of Bitcoin, was banned from the App store. It made angry the users of Bitcoin. They changed their cell phones from the iPhone to Android Smartphone. But this incident looked like a phenomenon which shows the crisis of Bitcoin for investors. Apple kills off last Bitcoin wallet app in the App Store

The Telegraph: Apple bans final bitcoin wallet from App Store

Second, some nations deemed Bitcoin as illegal procedure. The Indonesian central bank declared that Bitcoin was not acceptable as neither currency nor payment method. On the other hand, I am confused to see another statement of Bank Indonesia more neutral. More or less, they are at risk of violation against the law. Indonesia bans use of Bitcoin and other virtual currencies

News BTC: Bank Indonesia Issues Another Statement on Bitcoin, This Time More Neutral

In addition, Mt. Gox, one of the largest exchanges in Japan, temporarily abandoned the deal of Bitcoin. It sent an email to all customers to announce that it would have to stop the system. If it were a real bank, this accident would match freezing in Cyprus. MtGox ANNOUNCEMENT TO STOP BTC WITHDRAWALS

My past entry: Cyprus banks tax for depositors

In conclusion, there are lots of unfired bombs around Bitcoin. Although the main algorithm of Bitcoin is solid and cool, we need more time to construct the peripheral environment to avail Bitcoin safely.


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