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Bitcoin Price-Drop Caused By Rush Of Interest, Not DDOS, Says Mt.Gox Exchange; Newcomers Now Opening ~20k Accounts Per Day

Posted By admin On April 11, 2013 @ 4:17 am In Money Watch | Comments Disabled

techcrunch.com [1]
April 11, 2013

The Bitcoin correction we wrote about [2] yesterday was not caused by a DDOS attack on one of the largest Bitcoin exchanges, Mt.Gox [3], but rather by a massive spike in interest in the crypto currency, according to Mt.Gox.

During trading yesterday the value of Bitcoin plummet by 60%, dropping from a high of $265 to around $150 (it has since climbed back up slightly, to around $180 [4]). As the value of Bitcoin dropped, San Francisco-based exchange called TradeHill claimed the fall was a result of distributed denial of service attacks on Mt. Gox and Bitstamp [5].

But Mt.Gox has now posted a notice [6] on its Facebook page explaining the dramatic dive as the result of too much interest in Bitcoin. As its infrastructure slowed down under the volume of new users crowding in, it said the resulting lag then caused traders to panic and sell off currency — triggering the drop.

Earlier this month the Tokyo-based exchange was hit by a DDOS attack — which it said had caused its “worst trading lag ever [7]“. But this time the lag was caused by the Bitcoin goldrush, and existing investors’ fearing a Bitcoin bubble.

Full article here [8]


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URLs in this post:

[1] techcrunch.com: http://www.shtfplan.com/headline-news/bitcrash-down-50-in-massive-sell-off-over-1-billion-vaporized-in-a-few-hours_04102013

[2] wrote about: http://techcrunch.com/2013/04/10/bitcoin-crash/

[3] Mt.Gox: https://mtgox.com/

[4] around $180: http://realtimebitcoin.info/

[5] distributed denial of service attacks on Mt. Gox and Bitstamp: https://tradehill.com/

[6] a notice: https://www.facebook.com/MtGox/posts/455962117821534

[7] worst trading lag ever: https://www.facebook.com/MtGox/posts/453409538076792

[8] Full article here: http://techcrunch.com/2013/04/11/bitcoin-price-drop-caused-by-rush-of-interest-not-ddos-says-mt-gox-exchange-newcomers-now-opening-20k-accounts-per-day/

[9] Bitcoin Instantly Plunges 35% As Exchange Reopens: http://www.prisonplanet.com/bitcoin-instantly-plunges-35-as-exchange-reopens.html

[10] Top bitcoin exchange freezes, arbitrarily shuts down, proving you will not be able to get out of bitcoin when you want to: http://www.prisonplanet.com/top-bitcoin-exchange-freezes-arbitrarily-shuts-down-proving-you-will-not-be-able-to-get-out-of-bitcoin-when-you-want-to.html

[11] Bitcoin price craters as panic selloff claims 75% loss from bubble high: http://www.prisonplanet.com/bitcoin-price-craters-as-panic-selloff-claims-75-loss-from-bubble-high.html

[12] Germany recognizes Bitcoin as ‘private money’: http://www.prisonplanet.com/germany-recognizes-bitcoin-as-private-money.html

[13] The US Regulatory Vice Closes On Bitcoin: http://www.prisonplanet.com/the-us-regulatory-vice-closes-on-bitcoin.html

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