Mt. Gox under Fire

Bloomberg Article

Shortly after Mt. Gox’s chief executive officer, Mark Karpeles, quit the foundation’s board on Feb. 24, the group briefed the Manhattan U.S. Attorney’s office with information about the possible theft of as much as $400 million from the Bitcoin exchange, according to two people familiar with the effort.

“As our industry matures, we are seeing a second wave of capable, responsible entrepreneurs and investors who are building reliable services for this ecosystem,” [The Bitcoin Foundation] said yesterday.

Bitcoin’s price was $565.34 at 10:38 a.m. London time, according to the CoinDesk Bitcoin Price Index. It slumped as low as $418.78 on Feb. 25, and was as high as $1,151 on Dec. 4.

My opinion: In the immortal words of G.W. Bush, “Fool me once, shame on you. Fool me twice.. well I can’t get fooled twice.” Hopefully, as referenced in the Bloomberg quote above, this is just some growing pains for the fledgling currency. I am still waiting to see some solid industry practices and regulation instituted before I consider supporting/using Bitcoin to purchase anything; which is probably what many others are waiting for as well.

I can’t wait to see the price of Bitcoins when it becomes nearly as ‘safe’ as traditional currencies; however, by that time, the supply of bitcoins might be substantially more with the recent creation of data centers purely devoted to mining bitcoins. Of course this is going to put downward pressure on the price, but I would think demand would rise considerably as well as its safety improves. Personally, I’m stoked to see how this all plays out.

More info on those ‘data centers’ found here.

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