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3 Reasons Bitcoin Is Having An Awful 2015

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3 Reasons Bitcoin Is Having An Awful 2015

Bitcoin fell sharply lower this week, dropping from $267 to $224 on Tuesday. The crypto-currency is down another 21 percent on Wednesday, and now trades near $177.

The coin, said to usher the world into a digital age, seems to be losing momentum as consumers lose confidence in the currency’s validity and security. 

1. Hacking Attacks

The currency has proven extremely vulnerable to online hacking groups that are able to break into exchange databases and steal large amounts of Bitcoin.

Earlier this year, UK-based Bitstamp was breached and 19,000 Bitcoin were stolen. The attack served to remind the public of last year’s Mt Gox hacking attack and added to the perception that Bitcoin exchanges are unsafe.

Related Link: Which Companies Accept Bitcoin?

2. Mining Issues

Bitcoin is made possible because of the people who "mine" the currency. Miners generate new Bitcoin by doing calculations and adding to Blockchain, Bitcoin’s ledger.

Because the price of Bitcoin has dropped so dramatically, many firms no longer turn a profit from these mining operations.

On Monday, CEX.io announced the suspension of its mining operations, saying that prices below $320 made mining economically impractical. However, with bitcoin prices looking unlikely to recover anytime soon, CEX.io could face a difficult road ahead.

3. Legal Trouble

CoinTerra, a Bitcoin mining company, is wrapped up in legal trouble at the moment. The company is not paying customers after a lawsuit with C7 Data Centers, who is looking for over $4 million in unpaid costs. 

CoinTerra is now suing C7, the data center that blocked its access.

Image credit: Public Domain

 

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Posted-In: Bitstamp CEX.io CoinTerraNews Commodities Markets Tech Trading Ideas Best of Benzinga

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