Mtgox.com covers about 80% of the transactions where people buy and sell Bitcoins. It looks a lot like a stock market with price charts, buy/sell orders, and small fees for the transactions. Mtgox.com shut down during the April 2013 crash. They claimed that too many people were signing up for accounts - about 60,000 per day - but that does not seem to be a valid excuse for a shut down that lasted from $260+ down to around $100 in BTC exchange value on April 11, 2013.
Bitfloor.com shut down immediately and for good when the crash happened. The exchange function where we trade out of Bitcoins and into dollars, euros, yen, or any other currency or payment system exposes the exchange to significant currency risk. They can lose our Bitcoins and/or our national currency in a blink. This will continue to be an inherent risk in the near future.
A brief history of some of the main shut downs:
Mtgox and other Bitcoin exchanges shut down for block chain issues; there are splits in the block chain because of differing claims to be the valid chain. Another similar problem shut down the exchange on June 23, 2012.
The big shut down though, occurred on April 3, 2013 and April 11, 2013. There was no technical difficulty. Instead, Mtgox decided to cool the market instead of allowing it to trade free.
Read More: Prominent Attacks, Scammers, And Bottlenecks in Bitcoin Users
Bitcoin has had several code problems in which there were unverifiable Bitcoins within the network. The first and worst incident occurred shortly after Bitcoin came into existence. In August 2010 over 184 million BTC were generated in a transaction and sent to a few addresses in the network. They were soon spotted as false Bitcoins (BTC), the flaw in the code that created the false BTC was corrected, and within hours the network was back up.
On March 13, 2013 there was a split in the block chain as a result of a large number of blocks created that did not match with previous ones because of a difference in software and the size of the blocks created. This resulted in two sets of block chains depending on the version of the software 0.7 or 0.8 being run. The developers working with Bitcoin.org resolved this split by agreeing to use the 0.7 version and all the transactions checked against that block chain. Even after a 23% drop in Bitcoin value due to this split, Bitcoin bounced back.
Bitfloor.com shut down immediately and for good when the crash happened. The exchange function where we trade out of Bitcoins and into dollars, euros, yen, or any other currency or payment system exposes the exchange to significant currency risk. They can lose our Bitcoins and/or our national currency in a blink. This will continue to be an inherent risk in the near future.
A brief history of some of the main shut downs:
Mtgox and other Bitcoin exchanges shut down for block chain issues; there are splits in the block chain because of differing claims to be the valid chain. Another similar problem shut down the exchange on June 23, 2012.
The big shut down though, occurred on April 3, 2013 and April 11, 2013. There was no technical difficulty. Instead, Mtgox decided to cool the market instead of allowing it to trade free.
Read More: Prominent Attacks, Scammers, And Bottlenecks in Bitcoin Users
Bitcoin has had several code problems in which there were unverifiable Bitcoins within the network. The first and worst incident occurred shortly after Bitcoin came into existence. In August 2010 over 184 million BTC were generated in a transaction and sent to a few addresses in the network. They were soon spotted as false Bitcoins (BTC), the flaw in the code that created the false BTC was corrected, and within hours the network was back up.
On March 13, 2013 there was a split in the block chain as a result of a large number of blocks created that did not match with previous ones because of a difference in software and the size of the blocks created. This resulted in two sets of block chains depending on the version of the software 0.7 or 0.8 being run. The developers working with Bitcoin.org resolved this split by agreeing to use the 0.7 version and all the transactions checked against that block chain. Even after a 23% drop in Bitcoin value due to this split, Bitcoin bounced back.
The lesson though, is that Bitcoin can have problems with the core code. We all know our computers are not fool proof. Such is the issue with Bitcoin.
Bitcoin Rush: Discover Advantage of Bitcoin
Bitcoin Rush: Discover Advantage of Bitcoin
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