The short answer to why Bitcoin prices dropped today (Monday) is that Mt. Gox briefly had everyone thinking that a serious new flaw had been discovered in the software that controls the digital currency - but that's not the whole truth.
The trouble started Friday. Mt. Gox, the first Bitcoin exchange in the world and until last year the largest, first sent Bitcoin prices falling early Friday when it halted the transfer of Bitcoins out of the exchange to personal wallets so that it could study a problem it was having with those withdrawals.
The news sent Bitcoin prices falling from $830 to $652 in 10 hours. Mt. Gox promised to provide more details by this morning.
a lot of people were seeing red...
Bitcoin News Like This Gives Public the Wrong Idea
It was yet another piece of bad Bitcoin news: BitInstant Chief Executive Officer Charlie Shrem was arrested by federal agents Sunday and charged with using Bitcoin in a money-laundering scheme connected to the now-defunct Silk Road illegal drug website.
Ever since it started to get attention from mainstream media, Bitcoin has been unfairly saddled with a reputation for being nothing more than a high-tech tool for illegal activities.
Most Bitcoin news stories written over the past couple of years have prominently mentioned the use of the digital currency on Silk Road to buy and sell illegal drugs. Federal agents shut down that website in October.
Making matters worse (and more than slightly ironic) is that the 24-year-old Shrem is vice-chairman of the Bitcoin Foundation, a trade group dedicated to promoting the legitimacy of Bitcoin.
The arrest of Shrem has put those negative associations with Bitcoin back in the spotlight. But Bitcoin news like this is just a distraction from the digital currency's real potential to disrupt and improve electronic payment systems.
why Bitcoin is going to be such a huge deal...
Bitcoin News: Five Predictions for the Digital Currency in 2014
After Bitcoin exploded onto the financial world last year, it immediately became enveloped in controversy, with just as many predicting its imminent doom as were declaring it a revolutionary form of money.
The Bitcoin news in 2014 will have less drama but will be far more important to the fate of the digital currency.
Here's what 2014 has in store for Bitcoin...
Bitcoin Prices Surge Over $1,000 Again on Zynga News
Bitcoin prices climbed back over $1,000 yesterday (Monday), less than two weeks after the virtual currency crashed below $500.
The jump in Bitcoin prices was sparked by news that social game operator Zynga Inc. (Nasdaq: ZNGA) will now be accepting the virtual currency.
In a match made in Internet Heaven, those playing Farmville 2, CastleVille, ChefVille, CoasterVille, Hidden Chronicles, Hidden Shadows, and CityVille will be able to exchange Bitcoin for in-game purchases.
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New Bitcoin Trader Job Hits Wall Street
Wall Street traders tired of dealing with traditional securities now have another career option, as a San Francisco-based hedge fund has recently advertised a Bitcoin trader job.
That's right, the Bitcoin Gordon Gekko may be right around the corner.
The ad, placed on Jan. 2, details the position of "Junior Bitcoin Execution Trader." The junior trader will "assist with Bitcoin execution, general fund operations, and reporting." Some of the position's responsibilities (taken right from the ad) include:
one more tantalizing glimpse of the cryptocurrency’s lucrative future…
Ten Bitcoin Facts That Are Stranger Than Fiction
Just about everything that has to do with the digital currency Bitcoin is at least a little odd.
But there are some Bitcoin facts that are truly bizarre - things that could only happen in the universe of Bitcoin.
Bitcoin, which exists entirely in cyberspace, has attracted a lot of attention in recent months as the Bitcoin price has soared from less than $200 in September to more than $1,200 at the end of November. The world's leading "altcurrency" is trading for about $800 now.
It doesn't get much crazier than this...
Bitcoin's Five (Big) Advantages Over Gold
I strongly believe that everyone should own some physical gold. It's been the store of value, and the preferred method of asset protection for more than 5,000 years. It's irreplaceable.
But I also believe that every investor ought to own at least some of the new digital money known as bitcoin.
You see, most of the people buying bitcoin are interested in the explosive growth potential the new "currency" offers, as more and more retailers, CEOs, and governments embrace it.
But they're getting more than that.
it does have five distinct advantages over gold...