Update: Mt. Gox Files for Bankruptcy (28 Feb 2014) – Reuters.com
If you visit the Mt. Gox website today, you will be greeted by a blank, white screen. That is all that remains of Mt. Gox, which was at a time one of the largest traders of BitCoins on the internet. In its heyday, the site traded millions of dollars worth of Bitcoins with customers all over the world.
Mt. Gox’s fall from grace comes at a time when debates are raging against the negative effects of virtual currency. After all, virtual currency is unregulated, decentralized and there is little accountability.
Has Mt. Gox reached the end of its journey?
Mt. Gox has literally vanished from the internet after its website went offline, feeding ample fodder to the rumor mills. Some people are saying that the company has become insolvent. Others are calling it a fly-by-nite operator, which has run away with its customers’ money. Even if these rumors are not true, it is certain that the company is in deep waters.
Early signs of trouble at Mt. Gox
In early February, the company stopped withdrawals from the site, citing a bug in the system. Later, it stopped accepting new accounts. More recently, the company deleted all posts from its Twitter account, around the same time the company’s CEO, Mark Karpeles, resigned from his seat on the Board of Directors of the BitCoin Foundation. The company has also moved its offices in Japan saying there were security issues.
Where does the industry stand on this?
Industry leaders like Coinbase, Bitstamp.net, BTC China, Circle, Blockchain.info and Kraken have come out with a press release denouncing Mt. Gox’s ‘betrayal’ of its customers’ trust. They have promised to enact transparent and comprehensive measures to protect customers.
What do you think of Bitcoin? Do you think Bitcoin will survive? Post a thought in the comments below.
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Photo credit: John “Pathfinder” Lester / Foter / CC BY
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This could be a good time to buy Bitcoin. With some negativity in the media and many of the holders being individual speculator, there is bound to be some nervous selling.