The short answer to why Bitcoin prices dropped today (Monday) is that Mt. Gox briefly had everyone thinking that a serious new flaw had been discovered in the software that controls the digital currency – but that’s not the whole truth.
It was yet another piece of bad Bitcoin news: BitInstant Chief Executive Officer Charlie Shrem was arrested by federal agents Sunday and charged with using Bitcoin in a money-laundering scheme connected to the now-defunct Silk Road illegal drug website.
After Bitcoin exploded onto the financial world last year, it immediately became enveloped in controversy, with just as many predicting its imminent doom as were declaring it a revolutionary form of money.
Bitcoin prices climbed back over $1,000 yesterday (Monday), less than two weeks after the virtual currency crashed below $500.
Wall Street traders tired of dealing with traditional securities now have another career option, as a San Francisco-based hedge fund has recently advertised a Bitcoin trader job.
Just about everything that has to do with the digital currency Bitcoin is at least a little odd.
But there are some Bitcoin facts that are truly bizarre – things that could only happen in the universe of Bitcoin.
I strongly believe that everyone should own some physical gold. It’s been the store of value, and the preferred method of asset protection for more than 5,000 years. It’s irreplaceable.
But I also believe that every investor ought to own at least some of the new digital money known as bitcoin.