Bitcoin Dives to Lowest Price in 2014 Amid MtGox Turmoil

Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term (BTC) prices have taken a beating over the past 72 hours as many traders fear for the crypotcurrency's future while MtGox reveals technical issues related to withdrawals.

BTC is currently trading at around $690 on both Bitstamp and BTC-e- a drop of 14% from its previous plateau near $800 held for several weeks. This is BTC's lowest price in 2014- even lower than during the upheaval spurred by developments in China earlier this year, and the lowest since the price crash in mid-December.

Several hours ago, BTC had fallen as low as $671 on BTC-e. On Bitstamp, it even reached $619 at the peak of its selling, which saw as much as 10,000 BTC ($6.2M) exchange hands per hour.

Percentage-wise, the magnitude of loss on all exchanges is the highest in a month. In the process, BTC has shed $1.7B of market value.

On MtGox itself, the value of a Bitcoin is now officially lower than on the other exchanges, falling by as much as 35% to $622 in a matter of days. It's currently trading at $670. Volume continues in excess of 6000 BTC per hour and actually peaked over 7800 BTC/hr ($4.8M) at the height of the selling, as a bitcoin officially became less worth to own on MtGox than on other exchanges.

The revelations of serious technical issues have cast doubt not only on their ability to transfer bitcoins, but also on their ability to maintain the system integrity essential to preserve the very bitcoins they are entrusted with. MTGox's credibility to function as an exchange is also at stake, although most will be slightly relieved at the absence of revelations testifying to a solvency issue.

One can expect prices to remain at their dismal levels with continued Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term until if/when the MtGox issues are sorted out. Whatever happens with MtGox, expect prices to rebound strongly toward previous levels on other exchanges as soon as there's closure on the MtGox front and panic subsides. BTC prices have rebounded in strong fashion after falls resulting from developments posing a greater threat to the cryptocurrency's value and not confined to any one exchange in particular.