Posts Tagged ‘BTC

bitcoin-exchange-rate-going-down-again

Today the Bitcoin exchange rate started going down again and the reason seems to be some new rumors that the Chinese national bank is going to prohibit the trading of Bitcoins and other cryptos by not allowing banks to service the payments for crypto currency exchanges by ordering all Chinese banks and payment processors to close accounts of Chinese Bitcoin exchanges by 15th or April. It seems that this is still just a rumor as there is no official information, though some news services in China are apparently reporting the news and the result is as expected – panic sale. Some of the big Chinese crypto exchanges have reported that they are not aware of any official announcement and it is all just a rumor, but the information in question could just be sent to banks directly, though at the end of last year the central bank has issued official warning about trading of Bitcoins and this has caused panic and significant drop in the price of BTC that had previously hit a record high price. It seems that soon enough we’ll see if this time it was all just a hoax if the price starts to recover back to the normal level or we’ll get to see an official announcement…

mtgox-exchange-rate-going-down

The Bitcoin exchange rate at MtGox is still going down as a result of the recent problems they’ve had and the announcement they have made resulting in stopping BTC withdraws. The reason for that is simple – a lot of people that are trading on MtGox are selling their BTCs and are withdrawing in cash not willing to wait for the recovery of BTC withdraws. MtGox however is famous with another thing and that is the significant delays they have for processing cash withdraws, especially for European bank transfers that can take up to 6 weeks. That and the fact that MtGox has been “adding LTC trading” for months already has positioned MtGox from the place of a leading Bitcoin exchange to a literally dying exchange that is loosing more and more to other newer crypto exchanges that are more flexible and faster operating. The problem is that MtGox is now bringing the exchange rate of BTC and other cryptos in other exchanges down, so the faster MtGox either resolves the issues and restores BTC withdraws or completely shuts down happens the faster things will normalize. At the moment MtGox is just fueling panic in a lot of users and creating some good opportunities for money making for others. The question if you should be worried about MtGox killing Bitcoin should be asked the other way around – will Bitcoin kill MtGox and the answer is probably yes, or actually MtGox are killing themselves.

Bitstamp, another of the top BTC exchanges has also halted temporary Bitcoin withdraws and deposits and this also resulted in the exchange rate going down at that exchange as well. The situation here however is not as bad as with MtGox and customers using Bitstamp actually expect that the services will be resumed soon unlike on MtGox. Another among the most used BTC exchange BTC-E still has not halted operations regarding BTC transfers and although you can see some drop in the BTC exchange rate and other crypto currencies traded there as well.

Read a recent interview with MtGox’s CEO Mark Karpeles at Forbes…

mtgox-btc-low-exchnage-rate

This is something interesting, usually MtGox has significantly higher exchange rate for BTC/USD than on other Bitcoin exchanges, but now the exchange on MtGox is actually lower than on other exchanges. The reason for that might be related to a problem that the exchange currently has with BTC withdraws, so maybe now more people are exchanging and withdrawing in cash. Below you can find the official statement regarding the problem from MtGox, the good news it that everything should be back to normal in Monday… hopefully.

Dear MtGox Customers,

In our efforts to resolve the issue being encountered by various bitcoin withdrawals, it was determined that the increase in the flow of withdrawal requests has hindered our efforts on a technical level. To understand the issue thoroughly, the system needs to be in a static state.

In order for our team to resolve the withdrawal issue it is necessary for a temporarily pause on all withdrawal requests to obtain a clear technical view of the current processes.

We apologize for the sudden short notice. All bitcoin withdrawal requests will be on pause, and the withdrawals in the system will be returned to your MtGox wallet and can be reinitiated once the issue is resolved. The trading platform will perform as usual for the needs of our customers. 



Our team will resolve this problem as soon as possible and will provide an update on Monday, February 10, 2014 (JST).



We deeply apologize for the inconvenience caused, and thank you for your kind support and considerations. 


Sincerely,

The MtGox Team


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