07 Feb 2014 / RT – The value of the bitcoin cryptocurrency has dropped below $690 per unit on one of the world’s biggest exchanges Mt. Gox, after the Japanese trader temporarily stopped withdrawals to fix technical problems.
“In our efforts to resolve the issue being encountered by various bitcoin withdrawals, it was determined that the increase in the flow of withdrawal requests has hindered our efforts on a technical level. To understand the issue thoroughly, the system needs to be in a static state,” according to a statement released Friday, February 7.
“In order for our team to resolve the withdrawal issue it is necessary for a temporarily pause on all withdrawal requests to obtain a clear technical view of the current processes,” the MT Gox team said, promising to provide an update for their customers on Monday, February 10.
Friday’s plunge is more evidence of bitcoin volatility. Its value went above $1,000 in January and fell to below $690 on Friday’s announcement, recovering to $730 in about an hour.
Central banks across the globe have begun to crackdown on the cryptocurrency, instructing financial institutions not to accept bitcoins because they have no legal status or monetary-backing, like state-backed currencies.
Crackdown
The Russian Central Bank issued a ban on the virtual currency as they see it as a tool for criminals and terrorists to launder money without leaving a trace, as transactions are anonymous. On February 7, the Prosecutor’s General ruled bitcoin cannot be used by Russian citizens or companies.
At first a popular gimmick, many businesses attracted attention by accepting bitcoin. Now, many companies are reversing their decision. Online dating, coffee, and sandwiches are fair bitcoin tender, but companies are cutting back their bitcoin wallet functions. On Wednesday, Apple removed its bitcoin wallet application from its IOS store….. Read more
