The Bitcoin price has fallen dramatically after MtGox, the virtual currency’s most popular exchange platform, files for bankruptcy.
Bitcoin prices have fallen 4.5 percent in the marketplace on Friday. The fall in price has to do with MtGox filed for bankruptcy in Japan. THe Bitcoin exchange platform claims to have lost 750,000 customers’ bitcoins.
While faithful loyalists to the virtual currency say that they will stick with it despite this hurdle, economists say that MtGox losing such a massive amount of money show that virtual currencies have potential risks. Bitcoin prices have gone from $576.70 on Tuesday to $550.97 on Friday. It is projected that the prices will continue to fall as more information is released on MtGox and its bankruptcy proceedings.
MtGox went under after a hacker was able to steal $375 million worth of bitcoins. Customers were baffled when they went on MtGox and were met with the following message:
Dear MtGox Customers,
In light of recent news reports and the potential repercussions on MtGox’s operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. We will be closely monitoring the situation and will react accordingly.
It was then revealed that MtGox was hacked. The company issued an apology to its users and an investigation was reported to have been underway. It has not been stated how the hacker was able to gain access to MtGox.
What is the Bitcoin Price? Bitcoin Prices Fall Following MtGox Aftermath.