BTC-E

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Template:Infobox exchange BTC-E is a platform for buying and selling Bitcoin and other cryptocurrencies like Peercoin or Litecoin.[1][2] As of February 2014 BTC-E handles roughly 30% of Bitcoin exchange volume in USD, making it the second exchange in USD after Bitstamp.[3] BTC-E has been said to be the biggest benefactor of Mt. Gox's wire transfer processing difficulties in July 2013.[4]

Like many major Bitcoin exchanges, prices on BTC-E are significantly lower than at Mt. Gox, due to continuing difficulties in transferring fiat currencies (USD, EUR) into or out of Mt. Gox.[5] This is because withdrawing cash from one's Mt. Gox account has become extremely slow and difficult, so traders are reluctant to sell their Bitcoins at the site (thus constraining supply). Also, since Bitcoin withdrawals from the site do not suffer the same problems, the easiest way for a Mt. Gox seller to get cash out of their account is to use the cash to purchase Bitcoins, and then transfer the BTC out of Mt. Gox to sell at another exchange.

With no other reliable way to withdraw fiat currency from Mt. Gox accounts, this additional demand for Bitcoins further serves to drive prices up at the exchange. Due to these unusual circumstances affecting Mt. Gox's Bitcoin prices, as well as Mt. Gox accounting for a much smaller share of Bitcoin exchange volume than in the past, Mt. Gox is no longer viewed as the de facto market price for Bitcoins, as their prices are consistently higher than BTC-E and other exchanges.[5]

Little is known about the operators of the company.[6] The BTC-e managing company is based in Cyprus and a Cyprus registered company and some servers are located in Bulgaria. Therefore Cyprus jurisdiction applies (EU).[7]

In February 2014 hackers faked a criminal investigation press release (hoax) to discredit BTC-e.[8]

[edit] See also

[edit] References

  1. Justin Porter (7/31/12). "BTC-e Attacked". Bitcoin Magazine.
  2. Danny Bradbury (7/23/2013). "Litecoin founder Charles Lee on the origins and potential of the world’s second largest cryptocurrency". CoinDesk.
  3. Data for USD weighted average. bitcoinaverage.com. Retrieved on 19 February 2014.
  4. Ron Finberg (7/14/2013). "4th of July Special – MtGox Resumes US Dollar Withdrawals". Forex Magnates.
  5. 5.0 5.1 Donald Marron (9/3/2013). "How Bitcoin spreads violate a fundamental economic law". Forbes.
  6. "BTC-E (unknown company)". International Monetary Federation.
  7. "BTC-e: Our Recent Issues Were Caused By a Surge In Users". CoinDesk.
  8. "Russian Prosecutor’s Office: BTC-e Investigation Report was a Hoax" CoinDesk.

[edit] External links

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