This week on CCN, we learned about the Mt. Gox fiasco, Bobby Lee’s future of Bitcoin in China, Dogecoin’s success, the Silk Road 2.0 hack, and much more! Here are some of our top stories this week in case you missed them.
Mt. Gox Suspends all Bitcoin Withdrawals
On 7 February, Mt. Gox issued a press release stating that a technical issue with Bitcoin has caused them to halt all Bitcoin withdrawals. The issue is known as transaction malleability, and has been well-known for at least 2 years. Basically, an attacker could change a Bitcoin transaction’s unique ID before the transaction is confirmed, essentially pretending a transaction never happened. However, many people, including Bitcoin core developer Greg Maxwell, argued that transaction malleability really isn’t an issue. Gox’s argument was ridiculed by many, and Bitcoin prices fell bellow $500 at Mt. Gox.
Unanticipated bugs don’t come with year-old wiki pages fully documenting them. Gox is full of shit: https://t.co/9htPeb6ytM
— AndreasMAntonopoulos (@aantonop) February 10, 2014
In the end, essentially no one agreed with Mt. Gox about transaction malleability, making the end of Gox seem quite imminent.
Silk Road 2.0 Hacked
One of the largest online marketplaces for illegal drugs, Silk Road 2.0 was hacked with at least 4,673 BTC stolen. It seems that the Bitcoins were stolen by exploiting the transaction malleability bug, and Silk Road 2.0 had not made sure that their Bitcoin client was up to date with Bitcoin 0.80. This is not an issue with the Bitcoin protocol. Silk Road 2.0 is at fault here for not keeping up with Bitcoin updates. Some users are even claiming that the hack is an inside job, and Silk Road 2.0 has simply run off with its users’ money.
A Successful Week for Dogecoin
With all the Bitcoin-related issues this week, Bitcoin and many alt-coin prices took a hit. However, Dogecoin saw a 50% rise from 180 Satoshis to 270. Dogecoin also briefly surpassed Peercoin in market-cap, and two Chinese exchanges, BTC38 and ANX, began offering DOGE. Furthermore, Dogecoin is showing real potential for growth with projects such as Dogewand, which allows anyone to send Dogecoins to any social media user.
The Future of Bitcoin in China
One of our writers at CCN, David Boveington-Fauran sat down with BTC China’s CEO Bobby Lee and discussed the future of Bitcoin in China. Lee states that BTC China’s trade volumes are not as high as its competitors, but “we have a good pulse on the market”. Furthermore, Lee wants to do the best he can to comply with Chinese regulations as well as ensure the growth of Bitcoin in China.
That sums up this Week in Review. Check back every Sunday for our biggest stories of the week.