Bitcoin News in Review: Bitcoin Price, Mt Gox, Cloud Mining, And More

Journalist:
August 17, 2014

It’s Sunday again, meaning it’s time for another Bitcoin News in Review, where we check out some of the top stories of the week here on CryptoCoins News. This week (10 August – 17 August), we saw a huge drop in the Bitcoin price, more news regarding Mt. Gox, an interesting take on cloud mining, and more. Check out our video and keep scrolling for this Bitcoin News in Review.

[divider]CCN[/divider]

What’s Happening to the Bitcoin Price?

After a brief period of stability, it looks like volatility is back. At the time of this writing, one Bitcoin is worth ~$497, an almost $100 drop since last week. A lot of times, people assume that price changes are directly related to good or bad news. However, is that really the case? The price began descending around 10 August, and matching CCN’s analysis, the price plunged to ~$500. However, there was an even greater drop at BitFinex, and CCN has a detailed analysis explaining the drop. As always, CCN will keep you updated about any further changes in the price.

The Mt. Gox Saga Continues

More news has emerged regarding the seemingly never-ending Mt. Gox saga. The U.S. is finally officially cooperating with Japanese authorities investigating the several hundred thousand bitcoins allegedly hacked from Mt. Gox. This may come as good news to Mt. Gox creditors who recently criticised law enforcement over perceived inaction. Due to the seeming lack of effort from the authorities, many in the Bitcoin community have taken it upon themselves to investigate, leading to rumours of corruption, death threats, and disappearances.

In related news, creditors have been given a six-month extension to register claims against Mt. Gox, which means the investigation will be delayed by six months. All in all, creditors are extremely disappointed with the proceedings around the case, cite a lack of transparency, and are demanding to be paid in bitcoins rather than cash. For now, it doesn’t seem like the Mt. Gox case will be closed any time soon.

Gavin Andresen Has Harsh Words for the Cloud Mining Industry

The highly-respected and well-known Bitcoin developer Gavin Andresen recently had some harsh words for the cloud mining industry. To quote Andresen,

“…they [cloud mining companies] make no sense. I suspect many of them will turn out to be Ponzi schemes.”

Andreson isn’t the only one in the community to have such feelings against cloud mining. Unfortunately, the mining industry is full of scams, and many cloud mining companies could be hurting Bitcoin in the long run by centralising hashing power.

In related cloud mining news, GAW Miners recently announced Hashlet, what the company claims to be “the world’s first digital cloud miner”. The high volume of requests for Hashlet even caused Shopify to crash temporarily.

Dogeparty – An Attempt to Fix Dogecoin

Many in the cryptocurrency community would say that one of the biggest problems with Dogecoin is the fact that it’s uncapped. As a result, the supply of Dogecoins will grow infinitely, leading to a drop in demand, and consequently, a drop in price. In an attempt to fix this, many in the Dogecoin community are voluntarily destroying their coins in an event called Dogeparty. Coins are sent to a permanently unspendable “burn” wallet, and in return, users receive a new cryptocurrency called Dogeparty. This would, in theory, strengthen Dogecoin and promote Dogeparty. However, how successful this will be remains to be seen. There was a similar Bitcoin event a while back called Counterparty, where users would voluntarily destroy their BTC in an attempt to reduce the supply of bitcoins and raise the price. And look how that’s worked out…

Well, that’s it for this week. Be sure to follow CryptoCoins News on Facebook and Twitter for the latest cryptocurrency news. Enjoy the rest of your weekend!

Images credited in their respective articles.

Last modified (UTC): September 4, 2014 12:10

Neil Sardesai @@neilsardesai

I enjoy keeping up with the latest stuff in science and technology and have been following Bitcoin for a few years now. I also occasionally post cool stuff on twitter.