Bitcoin Hacked Making a Tiny Dent in Price

Bitcoin Hacked Making Dent in Price

Many online services and exchanges that deal in Bitcoins were hacked this week and it all led to a sharp drop in the value of the world's largest alternative currency. This is another example why many in the online gambling industry remain skeptical about using the unregulated currency. As of yet only a handful of online casinos and poker rooms accept Bitcoins and they have yet to attract any large operator's interest. This week saw trading on the MT.Gox exchange that handles most Bitcoin trades very sluggish as the website itself fought off an attack. However the attack did force a drop in the value and the Instawallet site where Bitcoins are stored has been taken offline indefinitely too. Although Bitcoins surged to a new high earlier in the week with each coin being worth around $142, this dropped to $90 following and during the distributed denial of service attack, which involves huge amounts of data being pumped towards a website. The attacks fell at a time when trading in Bitcoins was peaking, meaning even more traffic and data heading toward the site, causing huge problems. It's though that these regular attacks are the work of traders who buy the coins after an attack when the price has decreased and then wait a while until that price rises again in order to sell and make a profit. This is then repeated.

No Knowledge of The Attacks

The MTGox exchange said that they had no knowledge if or when the attacks themselves would cease but asked customers not to panic and that it was rebuilding it's trading technology which would handle far more traffic, however this will not be completed until year end. The Instawallet site was fraudulently accessed and it's core database was hit. They say thay they will reopen soon and that customers will again be able to access their accounts. Make of this what you will but it's no wonder that larger gaming operators are keeping their distance at present. With such attacks and fluctuations it's pretty hard to determine exactly what sort of figure you are currently holding. Maybe Bitcoin does have a future however many players will probably prefer to use something that they are a little more familiar with at the moment.