According to Allied International Trading, the value of crypto-currency, Bitcoin, has plunged after Mt.Gox, the world’s largest Bitcoin exchange goes offline.
Tokyo, Japan, March 2, 2014 - (PressReleasePoint) - Allied International Trading recently reported that Bitcoin owners and investors are nursing heavy losses after prices for the crypto-currency plunged amid rumors that Mt.Gox, the world’s first and largest Bitcoin exchange has had nearly 750,000 Bitcoins stolen in a sophisticated hacking incident.
The exchange’s site has gone offline and its Twitter feed has been deleted in what is being seen as a horrendous publicity disaster for Bitcoin.
“Mt.Gox has been beset by problems since its inception,” said a Allied International Trading tech analyst. “In June 2011, the database was compromised resulting in the leaking of 60,000 usernames, passwords and email addresses. Later on that year, the exchange was hacked and sell orders issued which drove prices down to $0.01 from $17.50,” she added.
The Beijing-based investment house believes that although the developments are disastrous PR for the currency, the technology is far too useful to simply disappear.
“Other exchanges are moving to distance themselves from Mt.Gox saying that the violation of its users’ trust was the result of its own poor governance and security rather than a reflection of the resilience or value of Bitcoin in particular or digital currencies in general,” said the Allied International Trading analyst.
The firm maintains its view that digital currencies represent the easiest and most practical means of effecting digital payment over long distance particularly because it completely bypasses the costs of the conventional banking system like credit cards, money transfer costs and foreign currency spreads.
Allied International Trading says that despite the drop in prices, it advises clients against entering into speculative positions with Bitcoin in the hope of profiting from a bounce in values.
About Allied International Trading:
Established in 2010, Allied International Trading manages diversified investment portfolios on behalf of institutional clients, corporate entities and sophisticated high net worth individuals.
The Allied International Trading investment process is meticulous in its attention to detail, due to our highly disciplined approach of identifying and valuing great businesses, with unrealized investment potential.
To ensure we stay ahead of the market, after careful deliberation by our analysts, we impose a strict limit on the amount of companies we expose our clients to, taking their personal risk tolerance into account. Our objective is to build a diversified investment portfolio that will deliver superior returns for our array of different investors.
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