Litecoins Blog Impact of Bitcoin Exchange Shutdowns

Impact of Bitcoin Exchange Shutdowns

First Meta Bitcoin Exchange has been the latest Bitcoin Exchange to close its doors. Canada-based Flexcoin was forced to shut down, stating that someone attacked its systems and stole circa $600,000 worth of Bitcoin. In this case it seems that the CEO of the company Autumn Radtke was found dead in her apartment this month.

This is only shortly after Japan-based MtGox Bitcoin exchange filed for bankruptcy protection. A flaw in the exchanges software meant that 850,000 Bitcoins were stolen worth about $429 million.

What effect has this had on Bitcoin and Litecoin prices. Well as expected prices have dropped. But at the same time I’m glad to see the back of MtGox. As with any banking system if they don’t have adequate security in place and are not running penetration tests then we are better off without them. I do feel sorry though for some of the clients. Some claim to have lost over £200,000 worth of Bitcoins.. Ouch.

Since the MtGox collapse we have seen a rebound for LTC and now we can move on. I don’t see these exchange collapses as a problem. After all the problems were not down to the Bitcoin protocol. They were down to lack of security and flawed code at the exchange.

With the recent addition of Litecoin on BTC China I only see good news ahead for LTC. I project the prices will climb over the next few months with a target of £25-£40 by summer.

So don’t let the media hype make you sell your LTC or BTC. I recommend long term hold as its still early days. We will see if my strategy pans out in the next few months.

 

 

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