The recent bitcoin crash has been the third of its kind in the past few months. This has forced people to question the cryptocurrency’s value. Is it going to end like the 90s dot.com bubble?
The cumbersome banking system was something which people were sick and tired of. All the bureaucratic rigmarole simply got everybody’s goat. Therefore a virtual currency, such as bitcoin, was invented in order to solve this problem. It was cheap and fast and easily manageable. But the hopes were dashed to the ground.
The cyberspace phenomenon is undergoing a crash for the third consecutive time. The heaven has turned into a landslide. Mt Gox, which is in Tokyo and deals in bitcoin speculation, rejected client withdrawals. The reason given was that a chink in the system had caused fraudulent nullifications of transactions. Some have even said that the real bug lies in Mt Gox itself.
The price of bitcoin has nosedived. Anyone who owns a lot of bitcoins is doomed to lose all that accumulated virtual currency in the crash that has just occurred. In fact, a stage came when the situation got so dismal that it seemed the whole structure had collapsed. The resultant effects remain to be seen.
As a regular money substitute, bitcoin seems for all purposes to have failed desperately. Countries with a history of dictatorship, such as Russia and China, have banned the commercial exchange in bitcoins. And as if that was not enough humiliation, a case of money laundering is pending against bitcoin in Florida.