February 12, 2014
On 10th February 2014, the worlds largest Bitcoin exchange – Mt. Gox – announced that it would be halting all withdrawals indefinitely. On Tuesday, a second major Bitcoing exchange - Slovenia based Bitstamp – announced that they too would be stopping all withdrawals, citing inconsistent results and a Denial-of-Service (DoS) attack by hackers as the reason for doing so.
Bitcoin is being hit by attacks from unknown computer hackers who are sending 'mutated' lines of code into the program that runs the virtual currency. The attacks are responsible for problems experienced by two Bitcoin exchanges that caused them to temporarily halt withdrawals by customers who stored Bitcoins in digital wallets provided by the exchanges, stated the Bitcoin foundation.
'This is a denial-of-service attack, whoever is doing this is not stealing coins, but is succeeding in preventing some transactions from confirming. It's important to note that DoS attacks do not affect people's Bitcoins wallets or funds,' said spokeswoman, Jinyoung Lee Englund. A team of core software developers who focus on Bitcoin are working to fix the problem, but until it it solved some users will not be able to do anything with their Bitcoins, and the affected Bitcoins will appear to be 'tied up' in transactions, she added.
However...More and More People are beginning to Accept Bitcoin Payments:
On 24th December 2013, RBI issued a notice outlining the risks involved for people utilizing Bitcoins. Two days later, the Enforcement Directorate (ED) undertook the first Bitcoin raid in India. Buysellbitco.in – stopped all operations on its platform. And so did other exchanges and portals as well. This however, does not seem to deter HighKart.com, India’s first online retailer to accept Bitcoin payments.
As an e-commerce company, safe, simple and reliable payment solutions are important for our customers, and Bitcoin payment provides us with exactly this. Bitcoin’s growing user base cannot be ignored. We’re proud that, from today, we’ll be the first e-commerce website in India able to accept Bitcoin payment. It’s an exciting development for us and our customers, said the company in a blog statement.