The Bitcoin, the first digital currency recently hit a new low, one Bitcoin just worth about four hundred dollars. Just last week Mike Hearn, the developer, sold every Bitcoin he owned, declaring the cryptocurrency a failure.
Since 2009 Bitcoin has been struggling to keep afloat, due to security issues within the servers. Small timing issues with the servers has allowed people to spend the same Bitcoin twice; if two purchases are made within a short amount of time, there is a chance that the first purchase will not have made it to the servers yet, so the balance will not have been changed. When the second purchase is made, it withdraws from the balance, so when the other purchase goes through it sees that it has already withdrawn from the account so the computer leaves the balance alone.
The digital currency began with serious flaws, because of the anonymity and the privacy behind the currency, it quickly became a place of respite for most criminal activities. Rather than using cash, which can be traced and tracked, the digital currency is untraceable. Each ticket or receipt is stored on the phone or device that the trade to place on. Unless the government were to use data from the Bitcoin severs to trace phones down, simply guessing if the trade was for illegal activities. Since Bitcoins can be traded at will, without a reason, it allows Bitcoins to travel completely freely.
The Bitcoin prices are fluctuating beyond control, but some claim that the death of Bitcoin is a huge exaggeration. Speculating that the reason that Bitcoin is unstable is simply the scalability of the project. The idea is that a smaller more local version may help with the server times and with the lack of interest within the global community.