Bitcoin is growing too fast compared to the speed of development of the technology platform required for maintaining virtual currency.
In business, a small error in programming is only a matter of concern not inconsequential. However, with virtual currency Bitcoin - a simple error that cost up to $ 5.3 billion (estimated value shrinking by all co Bitcoin in circulation worldwide in just the past 2 weeks). A technical error has caused small few Bitcoin exchanges have temporarily deactivated withdrawals.
$ 1,200 peak in December last year, Bitcoin transactions on Bitstamp (one of the largest Bitcoin exchanges) now reduced to 630 USD. Bitcoin community shock was exacerbated when the floor Mt. Gox suddenly disappeared.
The problem stems from the beginning of February, when the community discovered the technical vulnerabilities of virtual currency. Due to programming errors made co Bitcoin can be used a second time, hackers can take advantage of this loophole to demolish the market. Experts call this "malleable properties of transactions" (transaction malleability).
To avoid risks, most Bitcoin exchanges has idled teller to check whether their software is safe or not. However, the closure of a series made the market panic, rumor basically the mechanism of virtual currency has been broken and the customer's money was stolen by hackers. And yet, on 14/2, the Bitcoin worth $ 2.5 million stolen in the Silk Road 2.0.
According to experts on Bitcoin Mike Hearn, this is not a fatal weakness of Bitcoin. In fact, the developers were aware of "transaction malleability" from 2011. What is surprising here is the big exchanges like Mt. Gox was not prepared for this. Programming theory, this vulnerability repair job is simple. However, the process of implementation in practice difficult, as this means that the community must accept the new rules of the game. Besides, the use of electronic wallet safely and more cautious can also help prevent hackers.
Bitcoin's weakness stems from the success of this coin: speculators rushed to invest in here while Bitcoin is not ready for serious use and more formal. And, to make sure that people will also discover many weaknesses in the process of using Bitcoin.
Still, the advantages of Bitcoin is "open source", which means that anyone can find the error and offer to fix the error appears. Moreover, remember that the rise of Bitcoin in recent time is a progress: since 2011 until now, there have been dozens of exchanges (including Mt. Gox) was hacked and stealing millions of dollars. The price of Bitcoin has several times more than 50% decline. It is possible to hope that the crisis is over, the currency will improve.
