Crypto-currency, bitcoin value drops every day since a major bitcoin exchange was hacked
Gone are the days of 1 bitcoin being $1000 or $800 or $500 or even $300!
As of 14January2015, bitcoin has fallen to around $223 or $213.
Back in 2013, bitcoin crypto-currency dropped below $200. Today bitcoin lost over 40% of its value.
Last week, Bitstamp shut itself down following the theft of millions of dollars worth of bitcoins.
Online exchanges like Bitstamp allow you to sell and buy bitcoins. Bitcoins are used to make retail purchases like sandwiches, pizza, fine art etc, or can be exchanged for physical currency — cash money.
One unique example is when a Florida buyer purchased a $100,000 TESLA automobile from a dealership in Newport Beach, California with bitcoins.
Crypto currency’s value is historically volatile and all crypto-currency will experience such volatility. But bitcoin has been declining since early 2014. In February 2014, the world’s largest bitcoin exchange, Mt. Gox, went bankrupt after hackers reportedly stole $460 million worth of bitcoin.
It is said that because of cybersecurity concerns, plus the anonymity the currency provides users, bitcoins have drawn the attention of lawmakers and regulators. Well there goes the neighborhood. When the government gets involved, anonymity goes out of the window.
Financial regulators are expected to consider additional guidelines and oversight this year, 2015, that would put a stranglehold on bitcoin exchangers and its customers by increasing reporting requirements and requiring standard security protocols for companies using bitcoin. So not only will the government continue to tap your phone lines, bank accounts, financial activities, they will now start peering into your bitcoin wallets.