Bitcoin Exchange Mt. Gox Suspends Trading Sending Bitcoin Value Tumbling
Anyone looking for the ultimate gamble needs only to look virtual currencies like bitcoin. There are few commodities in the world where trading can rise and fall at the drop of a hat. Bitcoin’s volatility can be seen in the price fluctuations which were as low as $21 a year ago and reached an all-time high of $1200 in 2013. Currently the currency is trading around $740 which can change as we post this article.
To demonstrate just how volatile trading or gambling in Bitcoin really is we got a reminder as one of the leading bitcoin exchanges Mt. Gox suspended trading this morning. This news caused uncertainly and resulted in a whopping 21% decrease in the value of Bitcoin. The price dropped from $783 to $619. To spice things up even more the currency has rebounded to be trading above $730.
In a statement explaining the suspension, Mt. Gox said,” 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. 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.”
This is not the first time the leading Bitcoin exchange Mt. Cox has suspended trading and once again shows the massive negative impact a single bitcoin exchange can have on the entire currency. This latest roller coaster trading comes at a bad time as the virtual currency was seemingly gaining momentum in establishing itself as a viable alternative to traditional currencies. We have followed recent developments which include Zynga testing Bitcoin, Las Vegas hotels accepting bitcoin and many other merchants embracing the virtual gold. If high stakes gambling is what you seek there is no thrill bigger than rolling the dice with bitcoin.