As Hacking Incidences Increase, Voices to Ban Bitcoin Multiply

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As Hacking Incidences Increase, Voices to Ban Bitcoin Multiply
As Hacking Incidences Increase, Voices to Ban Bitcoin Multiply

As Hacking Incidences Increase, Voices to Ban Bitcoin Multiply

As hacking attacks have increased on Bitcoin exchanges and customers are losing their investments, the protest voices are coming up. The latest attack on Bitcoin has come up from the US Senator Joe Manchin, a Democrat from West Virginia who has formally sent a letter to federal regulators calling for an outright ban on Bitcoin.

Joe Manchin has also suggested that the failure of immediate action could negatively impact US consumers. In his statement to the media, he said that he is most concerned that as Bitcoin is inevitably banned in other countries, Americans will be left holding the bag on a valueless currency. Mt. Gox and Bitstamp faced hacking attacks recently.

Though Bitstamp later on restored its operations, Mt. Gox is down for a couple of days now and there is no likelihood of it going up. The latest voices coming against Bitcoin may set a reverse discourse on Bitcoin which saw a mammoth increase in exchange value as well as acceptance. A large number of outlets though started accepting Bitcoin, several governments like India, China, etc. warned customers about their use.

The letter that Joe Manchin sent to Federal Reserve Chairwoman Janet Yellen, among other top regulators, says that Bitcoin and other digital currencies are “unregulated and unstable.” Though it is not a new accusation on Bitcoin as there are no contrary claims, it definitely generates risk for those who do not know about the advantages from an unregulated currency.

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Bitcoin Being Unregulated is Risky for Customers

Unregulated currency which has its own set of benefits like it cannot be manipulated for benefit of any person or a government has often been blamed for insecurity and involvement in contraband activities. Joe’s letter has cited increasing warnings from central banks around the globe and requested the government to take similar action.

Mentioning the now-defunct online black marketplace Silk Road last June, Manchin in the letter says that Bitcoin’s features make it inherently attractive to criminals, who have used the currency to “steal millions from Bitcoins users”, and to buy drugs and weapons illegally. According to him the irreversible nature of Bitcoin transactions is the primary contributor in illegal activities.

Joe accuses that Bitcoin’s ability to finalize transactions quickly, makes it very difficult, if not impossible, to reverse fraudulent transactions. He says that Bitcoin’s price volatility adds to its dangers which are further aggravated by the technical glitches that Bitcoin exchanges face regularly. He also cited the example of Mt. Gox which is off these days post-hacking attack.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com