Bitcoin Was A Hoax - 880 Words

In December 2013, after a series of governments’ legislation was passed, the price of Bitcoin crashed. While many hoped for a revival, the prices continued to plummet until they reached low of $200. In one short year, the price had fallen to one-sixth of its previous high (â€Å"Complete Bitcoin’s Price Chart†). This fall proved what many thought; Bitcoin was a hoax. One of the greatest downfalls of cryptocurrency is due to its lack of governing power. It is important to note that this creates inherent weaknesses in the currency as well as governmental concerns. Both of which could prove to be detrimental to cryptocurrencies. According to renowned PhDs in Economics, Hendricson, Hogan, and Luther, there are many issues with the regulatory nature†¦show more content†¦An example of the lack of safety can be found in Bitcoin’s recent history. Student of law Misha Tsukerman M.J. relates that â€Å"Mt. Gox, founded in 2009 †¦ became the dominant online marketplace for the purchase and sale of Bitcoins, handling 80 percent of all Bitcoin trading activity in 2013. On February 25, 2014, Mt. Gox failed after hackers stole approximately 850,000 Bitcoins† (1150). In this event, hackers managed to steal approximately 480 million dollars (Takashi Mochizuki and Eleanor Warnock). Mt. Gox’s failure shook the confidence of Bitcoin users. Due to the previously mentioned weaknesses, the stolen Bitcoins could not be retrieved. Furthermore, due to the lack of regulations, Bitcoin can easily be used for illegal means. Technical writer Andy Extance claims that â€Å"because users are allowed to mask their identity with pseudonyms, the currency is perfect for screening criminal activity† (22). German philosopher, Claus Dierksmeier, further expounds, stating, â€Å"On websites specifically designed to escape public scrutiny, cryptocurrencies are being used to buy and sell illegal drugs, weapons, and sex. Unquestionably, the anonymity afforded by some altcoins affords criminals advantages compared to either trading in physical spaces or to using privately or publically owned exchange media within the virtual space of the Internet, opening the door to many forms of fraud and theft†¦Ã¢â‚¬  (6-7). Due to blockchain technology, the only identities ofShow MoreRelatedRed Rooms : A Murder Legend For The Modern Age Essay2371 Words   |  10 Pagesmany versions of the Red Room story, access to the Red Room is purchased with a currency called Bitcoin (Are Deep Web). Bitcoin is a real currency, and while the technical details of the Bitcoin currency are rather complex, it is worth noting that Bitcoin transactions are completely anonymous and untraceable (Nakamoto 5), making it an ideal way to purchase illicit goods on the dark web. That Bitcoin operates in such a fashion also makes it impossible to refund transactions, making it a prime choiceRead MoreThe Dark Web Essay5373 Words   |  22 PagesABSTRACT Interest in the Deep Web peaked in 2013 when the FBI took down the Silk Road marketplace and exposed the Internet’s notorious drugtrafficking underbelly. Ross Ulbricht, aka Dread Pirate Roberts, was charged for narcotics trafficking, computer hacking conspiracy, and money laundering. While news reports were technically referring to the Dark Web—that portion of the Internet that can only be accessed using special browsing software, the most popular of which is TOR —negative stereotypes aboutRead MoreInternet Is A Safe Haven For Criminals Essay2014 Words   |  9 Pagesgovernment filtering, acceptance or censorship, this all sounds great for rebel groups trying to overthrow their corrupt government, for example the Arab Spring. â€Å"the Arab Spring was a series of anti-government protests, uprisings and armed rebellions that spread across the Middle East in early 2011† [Manfreda], this movement was fueled and spread though social media, researchers analyze d more than three million tweets, gigabytes of YouTube content and thousands of blog posts, studies find that social