Volatility has returned to the digital currency space this month, as a massive security breach in one of bitcoin’s largest exchanges triggered panic-selling in the market, while Kim Dotcom recently teased about his upcoming Megaupload 2.0 project.
Bitcoin exchange Bitfinex recently said it was considering a plan to spread losses among all its users after a high-profile hack cost the firm around $70 million worth of bitcoins.
“We are still working on the details so nothing is set in stone. However, we are leaning towards a socialized loss scenario among bitcoin balances and active loans to [bitcoin/dollar] positions,” the Hong Kong-based company said on its website Friday.
The company suspended trading activity last week after a total of 119,756 bitcoins were stolen in a security breach. The news triggered a sharp selloff in the BTC/USD exchange rate, which has since consolidated well below its July highs.
According to CoinDesk, the BTC/USD exchange rate was last seen trading up 1.5% at $583.82. Renewed volatility in the market came after an extended period of stability that raised optimism about the digital currency’s growing mainstream appeal. Prior to this year, bitcoin was subject to volatile swings in its value. While the risk is still there, it appears that only major