Wednesday, February 26, 2014

Certain Bad Actors

I think the phrase "certain bad actors" is the key to all of this:
The purpose of this document is to summarize a joint statement to the Bitcoin community regarding Mt.Gox. 
This tragic violation of the trust of users of Mt.Gox was the result of one company’s actions and does not reflect the resilience or value of bitcoin and the digital currency industry. There are hundreds of trustworthy and responsible companies involved in bitcoin. These companies will continue to build the future of money by making bitcoin more secure and easy to use for consumers and merchants. As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today. Mtgox has confirmed its issues in private discussions with other members of the bitcoin community 
We are confident, however, that strong Bitcoin companies, led by highly competent teams and backed by credible investors, will continue to thrive, and to fulfill the promise that bitcoin offers as the future of payment in the Internet age. 
In order to re-establish the trust squandered by the failings of Mt. Gox, responsible bitcoin exchanges are working together and are committed to the future of bitcoin and the security of all customer funds. As part of the effort to re-assure customers, the following services will be coordinating efforts over the coming days to publicly reassure customers and the general public that all funds continue to be held in a safe and secure manner: Coinbase, Kraken, BitStamp, Circle, and BTC China.
Bitcoin is a currency that was created by a libertarian's need to be outside of the framework of all of the government regulation that grants legitimacy. The users want to be able to use it to buy things that money normally shouldn't buy. But it just went afoul of libertarian reality--you can't expect everyone to chill and be an honest bro without the threat of the power of a regulated currency, and that has to come from the power of the state. And while this disaster only covered a fraction of the Bitcoins in circulation, it has convinced just enough holders to get the hell out now.

You can't just invent your own money and expect it to work. But it may very well work out in the end. These growing pains have a way of sorting themselves out. I've read countless articles about how the euro is dead but it continues. That may well be the same with Bitcoin.

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