Bitcoin downfall

Half a year ago it was hard to imagine that the cryptocurrency “bitcoins” would fail to reach $1000 price per unit. The reality today is quite different. Now bitcoins can not shake away the image of an unstable, not trust-worthy and criminal currency. Russia’s top prosecutor, released a statement that bitcoins are completely illegal and can not have any source of authority. One of the world’s largest bitcoin exchange company, Mt. Gox, prevented the investors from pulling out their bitcoins out of the market, suggesting a glitch in a system. Apple store cleared it’s shelves from the last bitcoin wallet and authorities arrested BitInstant CEO. These news are a tendency that is very disturbing for the bitcoins market and investors are now backing up from further involvement.

The market has been significantly effected by the news, the price of bitcoin fell from $900 o $618 in a number of days. This type of cryptocurrency is no longer seen as a next big thing and people are beginning to realise the disadvantages it brings to the table. Zach Harvey, a man who built an ATM bitcoin machine says that the currency is far from stable and it is a challenge for the industry to adapt to it. Some companies was innovative and brave enough to offer their customers a chance to pay in bitcoins. TigerDirect was one of the first major companies to accept bitcoins as a reliable currency. Smaller business have been known to tolerate bitcoins for a long time. For example, a barber in Reno, Josh Arias, offered his clients a payment in bitcoins, but is now regreting his decision because of the unstable market. The bitcoin price drop may extensively hurt Josh’s business.

Bitcoin price fell from $900 to $618

The worlds goverments are still on the cross roads on whether to put reguliations on bitcoins. Russia, however, was soon to act by releasing a statement that “money substitutes can not be used by individuals and legal entities.” The economist, Jack Rickards, has the same opinion: “Bitcoin could disappear tomorrow with government intervention,” Rickards said. “I’d rather go to Las Vegas and play roulette, because I enjoy it.” Whether you like it or not, intelligent investors does not love a gamble and bitcoins are beginning to sound like a major one. This is one of the most important reasons why bitcoins have failed to go mainstream.

The bitcoins have some very interesting advantages though. You can transfer money for your relative living thousands of miles away without a single penny to pay for the transaction. No bank can offer that. The price drop can also suggest a positive thing, no bank is regulating the independent currency and you won’t have to worry about the inflation. The anonymity is also a clear advantages of bitcoins if you do not want anyone knowing about your purchases or transactions. However, this is a two sided coin, because the cryminals can surely make use of that.