EFF Stops Accepting Bitcoin Donations

In a move that could anger the Bitcoin community, the Electronic Frontier Foundation (EFF) has decided to stop accepting donations via Bitcoin, The Register reports.

The EFF, though itself not a member of the Bitcoin user community, had been accepting donations made through the currency via an account created by an anonymous third party.

The organisation's decision to part its way with the virtual currency came a few days after the recent Bitcoin Mt Gox hack crashed the currency's value.

Bitcoin is a virtual currency created in 2009 by Satoshi Nakamoto. The peer-to-peer, encrypted currency serves as an alternative to government controlled currencies for online transactions.

The currency, which has been embraced by some segments of the online community, has recently shown some of its drawbacks. When bitcoins are lost during a hack or some other security breach, they can be difficult to track, let alone recover.

Earlier last week, the Bitcoin user community underwent a massive shock when it was found that nearly 25,000 bitcoins (equivalent to almost $500,000 according to the exchange rate at the time) were stolen from a user during a hack. This eroded user confidence and caused Bitcoin's value to drop, though some people believe it will regain its value.