News Digest

Bitcoin prices fall for fourth straight month

Bitcoin prices declined for the fourth straight month in October, as investors’ concerns about the digital currency continue to grow amid a number of adverse incidents. During October, the bitcoin value declined by 12.8%, closing at 336.8 on 31 October, according to the Coin Desk Bitcoin price index. Regulatory issues have been a major source of concern for investors. The currency is banned in Russia, and the Chinese government is ensuring that the bitcoin business does not get any support from banks. In the US, the proposed rules by the New York’s Department of Financial Services are expected to curtail the free-wheeling nature of the currency.

[Australian] authorities may soon reap millions of dollars by selling more than 24,500 bitcoins confiscated from a Melbourne drug dealer. The currency’s volatility has seen the value of the seized asset jump from $700,000 at the time of the man’s arrest to nearly $32 million shortly after it was confiscated. Today the bitcoins were worth about $9.6 million.

Sydney Morning Herald

Some say that the increasing adoption of bitcoin payment option by merchants is also driving down its prices. The merchants are constantly converting bitcoins received from payments to the US dollar, leading to panic selling in the bitcoin market, according to them. In addition, the collapse of a number of bitcoin companies has hurt investor morale. Bitcoin Trader, a popular arbitrage service in the digital currency, earlier failed due to an alleged hacking attack. The digital currency has been widely used on online black markets, selling drugs and other illegal services and terrorist financing. It is feared that the currency may face restrictions from regulators due to its use in anti-social activities.