So as I was saying yesterday (Bitcoin: The Biggest Clown Show In History?), Bitcoin has several obstacles on the path to potential success as an alternative currency. But I forgot to mention hacking and theft at Bitcoin exchanges and other technical problems. This is related to the lack of government backing and the fact that the value of Bitcoins is based entirely on confidence.
Jitters After Bitcoin Exchange Suspends Services
By SYDNEY EMBER
One of the biggest Bitcoin exchanges suspended services on Tuesday, prompting unease in a virtual currency industry already scarred by the collapse last year of Mt. Gox, once its most prominent exchange.
On Tuesday morning, Bitstamp, based in London, posted a message on its website saying it had “temporarily suspended Bitstamp services” and urged its customers not to make deposits to previously issued Bitcoin deposit addresses. The exchange said that some of its virtual wallets were compromised on Sunday and that it had lost roughly 19,000 Bitcoins, worth about $5 million.
In its message, Bitstamp sought to reassure customers and prevent the sort of panic that ensued last February, when news of a major theft at Mt. Gox, based in Tokyo, roiled the Bitcoin world. “Bitstamp customers can rest assured that their Bitcoins held with us prior to temporary suspension of services on January 5th (at 9 a.m. UTC) are completely safe and will be honored in full,” Bitstamp wrote.
Keep reading Jitters After Bitcoin Exchange Suspends Services – NYTimes.com.
Picture by Geralt at Pixabay.
