08 February 2016

Triple whammy hits bitcoin price

07 February 2014  |  5390 views  |  1 Graph with fingers measuring

Bitcoin's price has plummeted by around 20% after exchange MT Gox temporarily suspended withdrawals, Apple kicked a popular wallet off of its App Store and Russia outlawed the crypto-currency.

Japan-based MT Gox, one of the world's biggest bitcoin exchanges, says in a statement on its site that an "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."

A temporary pause on all withdrawals has been made, with those already in the system returned to users' Mt Gox wallets until the issue is fixed.

Bitcoin's price is down 21%, to around $720 on Mt Gox.

Although rumblings about withdrawals from MT Gox have been heard for some time, bitcoin-dedicated site CoinDesk also notes that trading volumes have soared over the last day.

In another setback to the currency, Apple has taken down the popular BlockChain app - which has been downloaded 120,000 times - from its store. BlockChain boss, Nicolas Cary, told the New York Times that the decision was a pre-emptive strike by Apple as it prepares to launch its own mobile payments service.

And in a third blow, Russia's Prosecutor General's office has issued a strong statement on virtual currencies, warning: "Russia's official currency is the ruble. The introduction of other types of currencies and the issue of money surrogates are banned."

Comments: (1)

Alexander Peschkoff - TEDIPAY - London | 07 February, 2014, 11:45

Surprise, surprise...

As to that Russian statement, that depends on what they mean by "money surrogate"... They don't ban rouble-linked or rouble-denominated financial derivatives (which ARE money surrogates, funny enough). How is that different from rouble-linked digital assets?.. If I buy 10 "digital apples" at 100 roubles each, and then give those "digital apples" to a third party who then converts them back to roubles, where does "money surrogate" come into a picture (unless you count barter as one)?..

One needs to differentiate between digital currency and digital cash. They are similar, but not the same. One is a wild dark horse, the other is a civilized pathway to the future.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

30 January, 2014
27 January, 2014
16 January, 2014
06 January, 2014
18 December, 2013
16 December, 2013
12 December, 2013
05 December, 2013
29 November, 2013
27 November, 2013

Top topics

Most viewed Most shared
Fintech rising: Resistance is futile, says...
11219 views comments | 50 tweets | 42 linkedin
Digital transformation driving earnings at...
9491 views comments | 46 tweets | 36 linkedin
ECB eyes up European P2P payments
7836 views comments | 28 tweets | 39 linkedin
Visa opens up to developers
7795 views comments | 23 tweets | 41 linkedin
It may take ten years, but blockchain tech...
6503 views comments | 20 tweets | 19 linkedin

Featured job

to $120K base, double OTE, benefits
New York City, NY or Boston, MA (USA)

Find your next job