Uncertainty over other currencies, turmoil in Cyprus and media
interest are just some of the reasons commentators are citing for the
360 percent rise in bitcoin prices over the last month. The frenzied
interest in bitcoins piled over onto the social media site Twitter and
led to a spike in Google searches on the topic.
(Read More: What Is Bitcoin?)
But by Thursday morning bitcoin prices had fallen to $132 from Wednesday's record price of $147.
The most popular bitcoin exchange, Tokyo-based Mt.Gox announced
overnight that it had been the victim of a hacking attack after
experiencing a severe lag with its systems. The complications meant the
price quickly sank to below $115 before regaining ground to $130 by 6.00
a.m. London time on Thursday, according to Bitcoincharts.com.
(Read More: Bitcoin Bubble: How 'Geeks' Sent Prices Parabolic)
"There are many who will try to take advantage of the system. The past few days were a reminder of this sad truth," it said in a press release on its Facebook site.The exchange blamed a type of hacking attack called a distributed denial-of-service attack (DDoS).