News about the downswing in prices of Bitcoin -- known as the first peer-to-peer digital currency that has been met with skepticism but has nonetheless gained widespread use - has recently hogged headlines. Bitcoin's prices have been fluctuating owing to various factors. Circulated news on security vulnerabilities is one of them. One of the recent developments falling under this category is the hack attack on the Altcoin exchange.
Bitcoin is presently honored as a convenient mode of payment by a growing number of establishments. These include social networking and news websites, restaurants, online gaming and retail sites. It has gained popularity as a highly touted way of transferring money across borders, at minimal cost. The unfortunate reality is, the bitcoin's value has been declining for the past several months, fueled mainly by speculations about its future value. Then, there are the hack attacks.
Numerous hacking attacks have occurred since Bitcoin became accepted as a mode of payment and gained market demand. Hack attacks on bitcoin exchanges like Mt. Gox and Bitfloor resulted to a huge equivalent amount of stolen coins, underscoring the security vulnerabilities.
The recent hack attack on the Bitcoin and Altcoin Exchange Cryptoine, which led to the stoppage in operations of the exchange, reportedly occurred to custom-built software. The hack attack happened at a time when there have been extensive appeals from users for better security measures. It also drew attention to the fact that an alternative currency isn't free from dangers.
Devoted bitcoin users may shrug off the hacking incident and think that price will rise over time. It will keep changing value, but many users who have reaped the benefits of using the digital currency maintain that bitcoin is here to stay. These are the long-term users who have seen the inherent value of bitcoin and who are not inclined to run away based mainly on its fluctuating price versus the dollar. Then again, it cannot be denied that there are some kinks or problems that still need to be addressed in the months and years ahead.
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