23 August 2016
Find out more

Triple whammy hits bitcoin price

07 February 2014  |  5702 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
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)

Finextra news in your inbox

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

Related stories

Mint PFM platform to track bitcoin transactions

Mint PFM platform to track bitcoin transactions

30 January 2014  |  4529 views  |  0 comments | 10 tweets | 5 linkedin
BitInstant CEO charged with money laundering over Silk Road scheme

BitInstant CEO charged with money laundering over Silk Road scheme

27 January 2014  |  3271 views  |  0 comments | 4 tweets | 3 linkedin
French Senate holds bitcoin hearing

French Senate holds bitcoin hearing

16 January 2014  |  4101 views  |  2 comments | 7 tweets | 3 linkedin
Bitcoin smashes $1000 mark on Zynga adoption

Bitcoin smashes $1000 mark on Zynga adoption

06 January 2014  |  4112 views  |  0 comments | 7 tweets | 7 linkedin
Bitcoin tanks after Chinese exchange blocks new deposits

Bitcoin tanks after Chinese exchange blocks new deposits

18 December 2013  |  4804 views  |  0 comments | 9 tweets | 4 linkedin
Norway says bitcoin an asset, not a currency

Norway says bitcoin an asset, not a currency

16 December 2013  |  5642 views  |  2 comments | 11 tweets | 6 linkedin
Coinbase scores $25 million funding round as VCs pile into bitcoin

Coinbase scores $25 million funding round as VCs pile into bitcoin

12 December 2013  |  3990 views  |  0 comments | 3 tweets | 2 linkedin
China bans banks from bitcoin transactions as Wall Street wades in

China bans banks from bitcoin transactions as Wall Street wades in

05 December 2013  |  6455 views  |  7 comments | 9 tweets | 6 linkedin
Mt. Gox boosts security with one-time password card

Mt. Gox boosts security with one-time password card

29 November 2013  |  4206 views  |  0 comments | 4 tweets | 6 linkedin
Bitcoin hits $1000 mark

Bitcoin hits $1000 mark

27 November 2013  |  3916 views  |  0 comments | 5 tweets | 2 linkedin

Related blogs

Create a blog about this story (membership required)
Visit www.abe-eba.euVisit capgemini.comVisit equens.com

Top topics

Most viewed Most shared
hands typing furiouslyBlockchain: what to expect for 2017?
6349 views 0 | 48 tweets | 41 linkedin
Global fintech funding hits plateauGlobal fintech funding hits plateau
6209 views comments | 22 tweets | 21 linkedin
Teenager avoids conviction for CommBank DDoS attackTeenager avoids conviction for CommBank DD...
5763 views comments | 2 tweets | 3 linkedin
Walmartpay: A user reviewWalmartpay: A user review
5688 views comments | 16 tweets | 10 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job