![\"Bitcoin](\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2015\/01\/Bitcoin-price-1-year.png\")
<\/a>Bitcoin market price – one year look (click to enlarge)<\/p><\/div>\n
However trading volumes showed an overall upswing over the year, as the currency gained popularity with consumers and merchants alike.<\/p>\n
<\/a>Bitcoin transactions – one year look (click to enlarge)<\/p><\/div>\n
Bitcoin enthusiasts have opined that the steep early year drop in value is worrying in the short term<\/a>, as the digital currency faces continuous downward pricing pressure.<\/p>\n Larger mining groups will feel the impact of the drop more harshly as the low value increases the percentage cost of maintaining mining operations (a $1,000 BC would yield more profit than a $300 BC after power costs are covered).<\/p>\n In the long-term, however, players are still bullish on the currency, noting that it is still in its early days and busy stabilising.<\/p>\n Further, the currency has seen wider adoption by big players in the market – such as Microsoft and PayPal – and with regulation (which is still a ways off), the currency could expand even further.<\/p>\n Adding to the troubles for the cryptocurrency’s start to the year, the second busiest Bitcoin exhange in the world, Bitstamp, has been temporarily suspended<\/a>.<\/p>\n Bitstamp intitially took over the top spot when the world’s former number one exchange, Mt Gox, went bankrupt and shut its doors. The exchange has since been overtaken by Bitfinex.<\/p>\n The exchange announced on Monday (5 January) that it had “detected problems” with its wallet, and stopped withdrawals and warned users to avoid making deposits.<\/p>\n “We have reason to believe that one of Bitstamp\u2019s operational wallets was compromised on January 4th, 2015,” the group said.<\/p>\n “Bitstamp takes our security and soundness very seriously. In an excess of caution, we are suspending service as we continue to investigate. We will return to service and amend our security measures as appropriate.”<\/p>\n There does not appear to be a direct link to the January slump in trades, which was seen before the exchange was suspended.<\/p>\n The current market price for one bitcoin in local currency is at R3,455, according to local exchange, BitX.<\/p>\n Bitcoin: more accepted, but less used<\/a><\/strong><\/p>\nBitstamp trade suspended<\/h3>\n
More on Bitcoin<\/h3>\n