Between MyCoin and Russia’s Current Stance, Bitcoin is a Mixed Bag

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Boy oh boy… So we can definitely say that bitcoin has had a relatively slow and standard week, considering all it’s been going through.  Last week saw the price hovering at around $225, and now the price has slipped down to about $220.  A very minor drop, but still a drop no less.

The recent news regarding the bankruptcy of MyCoin in China, which saw to almost $400 million in investors’ funds go down in flames like a sinking ship certainly has a lot of people worried and on edge.  Many are looking at MyCoin and calling it the next Mt. Gox… Maybe it is.  After all, the amounts lost are nearly the same.

One of the major concerns is whether or not the news will have an effect on the future price of the digital currency.  Will it drop even further now?  Will bitcoin’s reputation receive heavy and inoperable damage?  Many blame the Bitstamp hacking and related attacks for the most recent price drops, and with something as massive as MyCoin occurring, the fear is growing beyond measure.

But there is also some other news to consider.  Beyond this unfortunate instance, there may be a glimmer of hope.  While the price of bitcoin and the currency itself remains in question with many people, the technology behind Bitcoin is still considered top of the line… So much in fact, that Russia’s Ministry of the Interior is now looking into regulation regarding the digital currency that the country has had such a rocky relationship with.

Russia and bitcoin have never truly gotten along. Certain Russian officials have called for a ban on its usage, often labeling it as a magnet for illegal and criminal activity, so it’s ironic that in the midst of everything occuring with MyCoin (and the alleged Ponzi scheme that many claim was hidden beneath the surface) that now Russia is finally considering the idea of regulation as opposed to straight up banning.  Of course, their ideas pertain more towards the blockchain and the usage of the technology it presents, but still… It’s an interesting and positive step forward.

The information above simply proves, yet again, that bitcoin is a mixed bag, and while there’s not really a whole lot we can do about the current price or the questionable activity that surrounds it, we can remember that bitcoin holds a strength that we don’t necessarily see all the time, and for every negative outcome, something positive can occur to make things even.