Bitcoin’s are making a splash in the market, but are they a safe investment? Joining us now to provide his breaking analysis on the state of this cyber-currency is SiliconANGLE Founding Editor Mark “Rizzn” Hopkins.
Earlier this week the Bitcoin wallet company Instawallet has suspended its service “indefinitely” after falling victim to a hack. Can you briefly explain what Instawallet did and how the site was compromised?
What will happen to Bitcoin holders who had their funds in Instawallet?
Following the Instawallet shut-down, Tokyo-based Mt. Gox, the world’s largest Bitcoin exchange, says it’s been hit by a major DDoS attack that’s causing lengthy trading lags, 502 errors, and in some cases, preventing people from logging into their accounts. Mark, why do you think Bitcoin has been targeted recently?
Mark Tuesday, we spoke with you on Bitcoin and we briefly touched on the pros and cons of such an investment. Michael Pento, a CNBC investment analyst, warned his viewers of “significant inherent dangers” to using Bitcoin. Pento’s definition for money is that it must have four elements: it must be rare, indestructible, divisible without losing purchasing power, and cannot be increased by fiat. He said that Bitcoin fails on the first two points. Given these latest developments would you say he was right in his assessment of Bitcoin?
Many investors have been leary of Bitcoin due to security concerns, the Instawallet attack is proof that this type of investment faces the dangers of the internet. Tuesday the value of Bitcoin was $100 per coin and yesterday it reached as high as $145, however now the price reportedly sits below $117. Do you think this scare is the end of the Bitcoin bubble?