Wednesday, 26 February 2014 17:13

Bitcoin exchange Mt. Gox goes dark after big hit to virtual currency

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Bitcoin has in recent months, received increased interest and gained wider acceptance as payment method, it has also has picked up a growing volume of large venture capital investors. The current price of around US$517 per bitcoin, the total estimated circulation is worth an approximate US$6.4 billion.

Source Xe.com 2014-02-26

Digital wallets are used for investors who deposit their bitcoines at specific exchanges, this means that the Mt. Gox shutdown is the same as a bank locking its doors. People cannot retrieve or withdraw their funds. A recent document purported to be a cris plan for Mt Gox has surfaced across the web, which said over 745,000 bitcoins were “missing due to malleability-related theft” and noted that Mt. Gox had $US174 millions in liabilities against $32.75 million in assets. It’s so far has not been possible to assess the exchanges financial situation or verify the document.

If correct it would mean that approximately 6 per cent of the 12.4 million bitcoins minted, technically known in the bitcoin community as “mined” would be considered missing. Worrying times ahead for the bitcoin community.


 

Market Capitalisation, source blockchain.info


 

Bitcoins in circulation, source blockchain.info

Read 595 times Last modified on Wednesday, 26 February 2014 21:23
Kerry Slater

Kerry is a Senoir writer at fundedflow