November 10, 2013
Bitcoin is a digital alternative currency. It's strengths, which also can be seen as it's weaknesses are that it's not regulated by Governments or central banks, transactions can be done anonymously and there is no trace back so chances of hacking are high. It Behaves like monetary system that can be exchanged and traded for dollars and/or Euros. Bitcoin is the most widely used alternative currency accepted by various merchants and services internationally.
The virtual currency, some argue, might not be all that safe. Some recent incidents have come to light where the Bitcoin has been hacked in large amounts:
Australia Bitcoin bank hacked :
Bitcoin wallet service Instawallet hacked :
--> There have been more thefts. List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses as compiled by Bitcointalk.org
LTP View: Wallets getting hacked, theft of Bitcoin currency has created a doubt amongst its users that whether Bitcoin is a viable, stable and secure currency or not? Well, the argument we should consider is that hacking and theft happens in the existing setup as well. In banks and with credit cards. There was a huge multi million dollar theft recently using prepaid cards. The value of the bitcoin currency seems to keep on rising. It started off at $50 at the beginning of the year and crossed the $200 mark in October. One bitcoin is currently (Nov 9th 2013) worth more than $336.35 on Mt. Gox. Whatever the pitfalls, there seems to be no stopping the Bitcoin.
On October 26th 2013, the Chinese Bitcoin exchange GBL suddenly shut down. GBL was founded in May 2013 and was initially branded as a Hong-Kong based exchange. However, it was later uncovered that the company’s servers were actually based in Beijing. It was never even granted a financial services license. GBL managed to take $4.1 Mn worth of its client funds.
According to Coindesk, GBL started issuing stock to its clients rather than offer cash redemptions, with the intention of maximizing the profit of their scam before shutting down. The company had more than 1000 users when this development took place. The Bitcoin is currently valued at $385.2 (Nov 12th 2013) on Mt.Gox's exchange.