Bitcoin Prices Lower after Altcoin Hacked

Steve Kanaval |

Bitcoin_1.jpg

Prices for Bitcoin are falling today and are currently down 7% to $246 per Bitcoin. News that another exchange has been hacked sent prices lower this morning.
Shares in the crypto currency have fallen back from the $300 level after a couple of larger players were hacked.

Bitcoin & Altcoin released a statement today, saying

"Unfortunately cryptoine was hacked. The hacker found some race condition bug in our trade engine. Manipulation of orders gave him false balances.  Soon we reveal more details". 

Bitcoin and Altcoin are claiming that the exploit happened as a result of a “race condition bug,” which, in programming terms, means that uncontrollable events do not happen in the order the programmer intended. In a PHP program, this can often mean a bug in the way that time-of-use and time-of-check are implemented. The attacker was apparently able to exploit mistakes of the exchange’s programming team.

No theft has been reported from B&A, but hack uncertainty has created volatility in Bitcoin since the collapse of Mt. Gox and other popular sites while Digital Currency gets it's footing into the mainstream. The exchange is unavailable at the time of writing, though, which has sent prices reeling in active trading.

Brand New Risks for the Cutting-Edge Currency

Unlike the AllCrypt hack, which occurred less than a month ago, and was supposedly executed due to weaknesses in the WordPress platform, this exploit happened to custom-built software – which is concerning to those writing the newer code and trying to find a security solution.

Bitcoin has traded in a range of $656 to $170 over the past year, and most of the declines are due to security driven hacks where users have lost Bitcoin currency. In this case, markets are falling in front of the confirmed hack, as information about Bitcoin becomes part of the news cycle.

I bought a Bitcoin in January 2015 around these levels to see what it is like owning the currency and using it to pay for items. As a former stock and commodity trader, the volatility is much like the Agricultural Complex at the Chicago Board of Trade (CBOT), when trading soybeans or corn during the crop release cycle, with 10% moves the norm. Digital Currency is in its infancy, and it tells a compelling story, with as many twists and turns as a spy novel. However, bear in mind that it’s not a currency for the weak of heart - or the light of digital wallet.

 

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