After rallying over 80% in the last month, Bitcoin prices are tumbling (down 25% from record highs to 2-week lows) as cryptocurrencies face uncertainty on three fronts.

As iBankCoin reports, investors are spooked over recent cyber attacks, uncertainty surrounding a Bitcoin platform upgrade, and proposed legislation which adds crypto currencies a list of reportable assets under existing anti-money laundering laws.

Cyber attack

As CNBC reports, major bitcoin exchanges were hit with multiple cyber attacks this week. Bitfinex, the largest U.S. dollar based bitcoin exchange, announced it was under ‘distributed denial-of-service’ attacks (DDOS) which slowed the service down.  The attacks come at a time when consumer interest in bitcoins has also led to heavier than normal traffic on the exchanges, compounding the attacks.

We are currently running slow due to a DDoS attack, hang tight while we make some adjustments to speed it up. #bitcoin #localbitcoins

— LocalBitcoins.com (@LocalBitcoins) August 16, 2016

Platform upgrade

On August 1st, the bitcoin platform will be undergoing a protocol upgrade labeled BIP148, meant to solve the block size debate – an argument over the size of bitcoin’s ‘blocks’ (a record of transactions on the public ledger – the ‘blockchain’). The planned improvements are supposed to help ‘scale’ bitcoin for future growth, lower fees, and speed up transaction times –  however, the upgrade is not without risks, and the Bitcoin community is divided.

#Bitcoin scaling negotiations / compromises are over.
Either we support BIP148 and save Bitcoin from destruction or 8 years gone to waste. ?

— Hisham Fahmy (@fahmyeu) June 14, 2017

Whether we like it or not, at this point not supporting BIP148 is the dangerous path. With most risks being to miners & services, not users.

— Neo M. Atrix (@RedPillTrading) June 4, 2017

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