This week’s halt, and possible collapse, of this Mt. Gox exchange may or may not end up being the beginning of the end for Bitcoin – but to borrow Winston Churchill’s term; it is definitely the end of the beginning. Gox had already lost its place as the top Bitcoin exchange ahead of the murky series of events which led the Tokyo-based website to shut down. An apparently leaked internal document indicates that the website might have been the victim of a significant theft, where perhaps more than 300 million worth of Bitcoin disappeared in the market’s account place disappeared in quotations because, naturally, Bitcoin has no physical manifestation.
Bitcoin exists only as the product of a computer algorithm whose origins are unknown and whose ultimate objective is unclear. It is attracted a varied assortment of users, including those who wish to stay questionable dealings private, individuals who might want to participate of the riches hidden from authorities who have access to traditional financial accounts, and end-of-the-wordless who believe civilized society is on the highway to hell and for some reason they will be better off comment acheter bitcoin cash owning bitcoins when all of us arrive there. Bitcoin enthusiasts prefer to call it a digital money, or cryptocurrency due to its encrypted nature. But it is clear today, amid the wild fluctuations in Bitcoins cost, that it is not a true currency in any respect. It is actually a commodity whose price fluctuates based on its quality and based on demand and supply.
As of this week, there are two ranges of Bitcoin. Among those Mt. Gox variety, which nobody can get while the website is down and which may no longer actually exist in any way, was worth only about one-sixth of another bitcoin yesterday. Some people are always willing to provide value, albeit not too much value, to have a chance on a potentially worthless asset. This is the reason shares of companies which are obviously going to go bust can exchange for a cost greater than zero. But at least we understand the stocks exist, whether in tangible or intangible form, and you will find government authorities available to vouch for their validity, or even their worth. Bitcoin, sponsored by no authorities and outlawed by a few, has no such financing. Request any Mt. Gox user now whether that is a plus, as bitcoin holders have heretofore maintained. Government from Tokyo to New York is already probing the Mt. Gox collapse, and some type of follow-up action appears likely.