Wednesday, April 3, 2013

Block mining delays and price drops

I noted tonight that there were two large price drops on Mt Gox - on around 18:50 to 19:00 (130 dollars down to 120 dollars), and another at 20:30 (from 125 dollars to 115 dollars). Coincidentally at the same time, there were significant delays in the verification of blocks at those times - in the first case it took 23 minutes between blocks (usually it's 9 to 10 minutes), and in the second case a whopping 28 minutes.

I wonder if the delay in verification causes the price drop? It might be worth keeping an eye on.

Update: no, it seems to be linked to a DDoS attack on Mt Gox. This is why having one exchange dominating Bitcoin trading is a bad idea.

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