Trouble in Bitcoinland not as bad as portrayed

According to reports circulating on the Internet, the website of Mt.Gox, a Tokyo-based Bitcoin exchange, seems to have been taken down. It may not be the catastrophe that some are describing, but it is serious.

As you know, governments hate Bitcoin – the unregulated, non-national electronic currency. The US has already put a key player under house arrest – typical goon behavior of a frightened government.

The Wall Street Journal has an excellent roundup of information and links relating to the recent glitch. This is from the main story:

A report widely circulated online since Monday in the U.S. said Mt. Gox had lost almost 750,000 bitcoin to long-running theft. Though the value of the alleged loss is difficult to quantify because of bitcoin price fluctuations, that amount would represent around 6% of bitcoin in existence and a value of around $365 million at Monday’s prices.

<snip>

Japan’s central bank, finance ministry and banking watchdog, the Financial Services Authority, have all declined to take responsibility for regulating bitcoin.

We said several days ago that there would be problems – this is normal in a new technology. The problems seem worse because MONEY is at the root of the issues. Not the LOVE of, but the CONTROL of, it.

Stay tuned. In that over-used old cliche’ – it’s going to be a bumpy ride.

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About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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