Bitcoin Was the 'Victim of Its Own Success,' Not DDOS Attack

Bitcoin, the world's most popular virtual currency, yesterday took a huge nosedive — from its all-time-high of $265 to as low as $105 — but the reason is not a DDOS as some have speculated

Instead, the leading Bitcoing exchange, Mt.Gox, claims that Bitcoin was "a victim of its own success," with the lag from too much interest in the currency causing many investors to sell, which lead to a market panic

"The rather astonishing amount of new account opened in the last few days added to the existing one plus the number of trade made a huge impact on the overall system that started to lag. As expected in such situation people started to panic, started to sell Bitcoin in mass (Panic Sale) resulting in an increase of trade that ultimately froze the trade engine," wrote Mt.Gox on its Facebook page Read more...