Tuesday, February 25, 2014

Mt. Gox Disappears! Is Bitcoin Finished?

The bitcoin logo
The bitcoin logo (Photo credit: Wikipedia)

Late Monday, the Bitcoin-trading site Mt. Gox went dark, leaving everyone questioning the future of the virtual currency. There have been reports of a security breach, compromising over $300 million dollars from investors. Annie reports on this news, and what it means for the future of Bitcoin.

Read More:
LulzSec Rogue Suspected of Bitcoin Hack
"More than $9m of online currency was stolen in weekend attack on Bitcoin currency exchange that could cost members of Anonymous and LulzSec thousands of dollars each."

Feds Seized $2.9M in Bitcoin Funds From Mt. Gox, Court Docs Show
"The federal government sent a strong signal to Bitcoin traders earlier this year when the U.S. Department of Homeland Security seized an account belonging to Mt. Gox, the most popular exchange for people to buy and sell the crypto-currency. It was unclear at the time just how much currency the government confiscated."

Bitcoin Fails Finland's Money Test, Judged Commodity
"Bitcoin doesn't meet the definition of a currency or even an electronic payment form in Finland, where the central bank has instead decided to categorize the software as a commodity."

Latest Instance of Pony Botnet Pilfers $200k, 700k Credentials
"Attackers leveraged a Pony botnet controller to not only siphon away a large batch of account credentials but also to make off with over $200,000 in Bitcoin and other virtual currencies over a four month span, according to researchers this week."

Authorities See Worth of Bitcoin
"Senior U.S. law-enforcement and regulatory officials said they see benefits in digital forms of money and are making progress in tackling its risks."

Bitcoin ATMs Landing In The US
"Robocoin's bitcoin ATMs are hitting the United States later this month, Reuters reported Tuesday."

Bitcoin Currency Inspires Tulip Mania Comparisons
"Unlike dollar bills, gold bars or your friend's mint-condition Beanie Babies, bitcoin is a decentralized digital currency that doesn't exist in any tangible form."

Tulip Mania
"Tulip mania or tulipomania was a period in the Dutch Golden Age during which contract prices for bulbs of the recently introduced tulip reached extraordinarily high levels and then suddenly collapsed."

Our Notes:  Present Bitcoin value at the time of this writing is $557.99 per coin US.  Not exactly the bursting of the bubble.  One has to wait and see for a few more days, the impact all of this news is having on all investors.  Something not taken into consideration in the above video is the fact that Bitcoins remain intact even after something like this.  The owners have not lost their Bitcoins unless their information was hacked along with the actual Bitcoins.   We find the security breach story a bit strange to say the least and may just be somewhat misleading.
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