Bitcoin entrepreneurs bullish despite tech trouble

longtermpotential12 Feb 2014 / SFGate – BERLIN (AP) — A freeze on Bitcoin withdrawals imposed by three major exchanges won’t cause any long-term harm to the digital currency’s credibility, entrepreneurs attending a Bitcoin conference said Wednesday.

Bitcoin’s value, which topped $1,100 in November, dropped below $630 Wednesday after the news overnight that the BTC-E and Bitstamp exchanges have stopped customers from converting their funds back into traditional currencies.

They cited an apparent technical glitch that allows fraudsters to flood exchanges with fake withdrawal requests — a problem first reported by the Mt. Gox exchange when it announced a freeze on withdrawals last week.

“It is kind of like someone sending a receipt and then someone coming back to the store with a photocopy of that receipt and asking for a refund,” said Nicolas Cary, chief executive of Blockchain.info, a site that provides users with digital wallets for Bitcoins….. Read more

http://www.sfgate.com/business/technology/article/Bitcoin-entrepreneurs-bullish-despite-tech-trouble-5227429.php

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