>> Bitcoin fever has seen blistering price gains for the digital currency. It's up over 1,600% this year. But with millions of new traders jumping in, some worry the market is ill equipped to handle the volume. As BitCoin hit a new peak on Tuesday, one of the biggest providers of digital currency wallets, Coin Base, went down under heavy traffic, leaving over 10 million customers unable to access their funds.
Reuters Jemima Kelly says the latest outages exposes cryptomarket frailties.>> The idea that all the Bitcoin holders are going to be able to sell their BitCoin with all their profits intact, I think is a false one. I think if everyone tries to leave at the same time, there's gonna be very dramatic price drop.
If there were a big, sudden price collapse, it would probably be the retail investors who would get the hardest hit. And a huge number of them have flooded into the market over the past year. There are now 20 million wallet holders on Blockchain.info, which is one of the biggest wallet providers.
And if there was a sudden price collapse, the kind of investors who are trading BitCoin at the weekends and just doing it for a bit of fun, are not gonna be the ones who are gonna be watching the price every second, and are gonna be able to get out their money very quickly.
>> At the same time as the problem at the coin base, the world's biggest bitcoin exchange Bit Phoenix said it was under a heavy denial of service attack. Meaning it's service had been intentionally flooded with junk online requests, taking down it's website and crippling its services. Then there's the world volatility of the market which has sometimes seen Bitcoin trade at wildly different prices on different exchanges.
Right now buying Bitcoin is not for the faint hearted.