Bitcoin exchange rates below $400 USD in September 2014
Published: Sun, 21 Sep 2014 by Rad
Bitcoin has fallen to its lowest price since April 2014 following a turbulent 24 hours for the world's most valuable cryptocurrency. The price crash has been blamed on a variety of factors, with some analysts citing market traders setting their lowest bound exit point at $450. When the price dipped to this point, it would have therefore sparked a mass sell-off.
What is Bitcoin
Bitcoin - a digital currency in which transactions can be performed without the need for a central bank.
Other speculation centres on the idea that wider bitcoin adoption from retailers has meant that bitcoin is constantly being exchanged for traditional fiat currencies as soon as a transaction takes place.
Bitcoin advocate Charlie Shrem, a well-known figure within the cryptocurrency community, has dismissed this idea, referring to it as a "bearish" argument.
"People constantly keep citing this as an example of constant downward pressure but it is simply not true," Shrem wrote in a recent post on Reddit. "BitPay and Coinbase DO NOT sell Bitcoin on exchanges."uk.news.yahoo.com
A recent poll has suggested that the price of bitcoin could continue falling, at least in the short term, with 28% of respondents predicting bitcoin will remain in the $350-$450 price bracket. 52% of those who answered predicted that it would fall even lower than this.
Meanwhile the Isle of Man has embraced Bitcoin and aims to become a global centre for crypto-currencies, but recently there has been reports that the Capital Treasury Services will be withdrawing support for crypto-currency companies due to a lack of support from the wider financial sector. The accounts of those companies involved in the crypto-space will be closed next month. The consequence of this is that the entrepreneurs, innovative activity and future economic benefits will be located elsewhere. Previous to this development, the Isle of Man was a serious contender for being a Bitcoin/crypto-currency hub.
Security concerns to blame?
The risk of Bitcoin relating to computer security may be a reason behind the recent price decline today. In Australia it has been reported that hackers have frozen and locked more than 20,000 computers by malicious software. The software asks users for a Bitcoin ransom to unlock the computer. Backing up files is an important lesson to be learned for Bitcoin users as this would provide a solution in circumstances such as these.
Like in real life, Bitcoin wallet must be secured. Bitcoin makes it possible to transfer value anywhere in a very easy way and it allows you to be in control of your money. Such great features also come with great security concerns. At the same time, Bitcoin can provide very high levels of security if used correctly. Always remember that it is your responsibility to adopt good practices in order to protect your money.
Resources and related articles
- Bitcoin Price Crashes Below $400
- What is Bitcoin - FAQ
- What is fiat currency
- Bitcoin history charts
- Massive hack on Australian computers
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Thought of the day
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies. The first method is far more difficult.
C. A. R. Hoare