DDoS attacks manipulate vulnerable marketsThe vulnerable market was the Mt. Gox Bitcoin exchange. In April 2013, Mt. Gox was overwhelmed by DDoS. The point, the company speculated, was to destabilize Bitcoin and fuel panic-selling. After driving market prices down, the attackers can then rush in and buy Bitcoin at the lower price. Obviously, this isn't fair.
Life isn't fair but Bitcoin must beLife may not be fair in general, but securities and currency markets require fairness and avoidance of market manipulation in order to function. Without it, they will die. Trust is essential. Apparently, Mt. Gox was robust enough to withstand this volatility. The attackers were fortunate. In their pursuit of unfair profits, they are taking a selfishly short-term view. DDoS attacks could destabilize Mt. Gox, or any other entity that serves a similar purpose. If that happens often enough, or in sufficient size, it will undermine credibility in Bitcoin.
Mt. Gox wasn't uniquely vulnerable. In the past few months, there were other DDoS related Bitcoin extortion incidents. BTC-China was brought down in September 2013, and BIPS, a European payment provider, experienced a DDoS attack two days ago, on 26 November 2013.