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Mt. Gox on verge of collapse, Bitcoin plunges: Is this the end for the virtual currency?
Yahoo Finance ^ | 02/25/2014

Posted on 02/25/2014 8:06:41 AM PST by SeekAndFind

Check out Mt. Gox, the site of what was the largest bitcoin exchange at one point, and you'll find a blank page. The site is now unavailable, and the exchange appears to be on the verge of collapse -- a number of Bitcoin companies announced Mt. Gox was planning to file for bankruptcy after technical problems and an apparent major theft. Customers have been unable to withdraw their money since Feb. 7.

An alleged Mt. Gox document circulating on the Internet that can't be confirmed said the company had lost more than 744,00 Bitcoins in a theft that had gone unnoticed for years.

Related: "Silicon Valley is the new Wall Street": Alex Payne

The news pushed the price of Bitcoin below $500 for the first time since November when the virtual currency began an ascent to above $1,100, according to CoinDesk.

A number of Bitcoin companies including digital walllet Coinbase issued a joint statement distancing themselves from Mt. Gox, writing: "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."

Related: Bitcoin ATMs roll out as cryptocurrency faces hackers, regulation and volatility

So is that really what we are seeing?

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Computers/Internet
KEYWORDS: bitcoin; currency; mrgox

1 posted on 02/25/2014 8:06:41 AM PST by SeekAndFind
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To: SeekAndFind

I’ve been hoarding stacks of Monopoly money, waiting for the day it becomes acceptable currency. With the collapse of bitcoin, I might be in luck!!


2 posted on 02/25/2014 8:09:30 AM PST by ObozoMustGo2012
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To: SeekAndFind

A more complete fiasco than even “carbon credits”, which, no matter how flawed the reasoning for their creation, had at least tacit support from the Current Regime now squatting in the Oval Orifice.


3 posted on 02/25/2014 8:09:42 AM PST by alloysteel (Obamacare - Death and Taxes now available online. One-stop shopping at its best!)
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To: SeekAndFind

The bitcoin bugs here on FR aren’t going to like this. I have been bashed several times by the bugs.


4 posted on 02/25/2014 8:13:34 AM PST by Organic Panic
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To: Organic Panic
I have been bashed several times by the bugs.


5 posted on 02/25/2014 8:18:51 AM PST by Bloody Sam Roberts ("The further a society drifts from truth the more it will hate those who speak it." - George Orwell)
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To: SeekAndFind

It won’t be the end, there’s always some sort of alternate currency out there. But it does show why they always remain within a given culture and don’t become a replacement. Turns out coining money for general use ain’t that easy.


6 posted on 02/25/2014 8:19:51 AM PST by discostu (I don't meme well.)
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To: SeekAndFind

7 posted on 02/25/2014 8:23:42 AM PST by DannyTN
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To: alloysteel

I hope most nice people got out and the dealers and hackers got burned.......


8 posted on 02/25/2014 8:26:51 AM PST by Therapsid
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To: FReepers
Insure FR's Future!
Become A Monthly Donor


Click The Pic To Donate

The next donation of $50 or more gets us to 89%

9 posted on 02/25/2014 8:29:39 AM PST by DJ MacWoW (The Fed Gov is not one ring to rule them all)
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To: SeekAndFind

No one could have possibly foreseen this


10 posted on 02/25/2014 8:32:34 AM PST by babble-on
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To: SeekAndFind

What’s that saying about ‘A fool and his money...


11 posted on 02/25/2014 8:33:55 AM PST by McGruff (Every night has it's dawn.)
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To: SeekAndFind

“Is this the end for the virtual currency?”

In a word, no.


12 posted on 02/25/2014 8:34:19 AM PST by PreciousLiberty
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To: SeekAndFind

< tinfoil >It is hard to imagine the big money interests or the gov’ts of the world would allow these types of currencies, i.e. not controlled by the gov’t and gov’t lobbyists. I would not be surprised to find they are behind efforts to take down such currencies. < /tinfoil >


13 posted on 02/25/2014 8:35:03 AM PST by TheDon (Californians are losing their right to keep and bear firearms one firearm at a time.)
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To: PreciousLiberty

“I hope most nice people got out and the dealers and hackers got burned.......”

Nobody who bought below $500 or so has been “burned” yet.

We’ll see if any of the retailers accepting it stop doing that. That might cause more downward price pressure.


14 posted on 02/25/2014 8:35:55 AM PST by PreciousLiberty
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To: ObozoMustGo2012

I’m smarter, I bought a printing press and colored paper to make my own. Top that!!!


15 posted on 02/25/2014 8:36:14 AM PST by ImJustAnotherOkie (zerogottago)
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To: SeekAndFind

Gee, software code doesn’t work as money....who would have guessed it?


16 posted on 02/25/2014 8:39:24 AM PST by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: SeekAndFind

After taking a class on bitcoin, here is my take.
Cryptocurrency is a perfect way to transfer funds without being traced.
Governments can’t allow this for tax or security reasons.
Mt Gox got the message from someone.
Shut down or its prison time.


17 posted on 02/25/2014 8:39:58 AM PST by Zathras
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To: PreciousLiberty

I agree. In fact, I believe it will pave the way for a cashless society and we will be - shall I say - Chipped on the arm or hand for transactions.


18 posted on 02/25/2014 8:47:53 AM PST by Patriot Babe
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To: alloysteel

More like The appearance of support.

Now with the collapse of the first major bitcoin trader/repository I’m sure the government will be more than willing to jump in and regulate.

If you detected a bit of sinister sarcasm embedded in that statement, then we’re on the right wavelength.


19 posted on 02/25/2014 8:54:16 AM PST by Usagi_yo (Standardization is an Evolutionary dead end.)
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To: Red in Blue PA

“Gee, software code doesn’t work as money....who would have guessed it?”

Apparently not the US government, who “prints” billions per month without actually printing anything.

Or do you think the QE payments are made with truckloads of $100 bills? lol


20 posted on 02/25/2014 8:56:15 AM PST by PreciousLiberty
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To: PreciousLiberty

I’m just wondering if the bankers and or governments had a hand in the hacking....after all...who has the most to lose?


21 posted on 02/25/2014 8:57:33 AM PST by Aria ( 2008 & 2012 weren't elections - they were coup d'etats.)
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To: SeekAndFind

No retailers really take bitcoin as currency - that’s just a hype tactic. Unless they actually PRICE their goods in bitcoin, they aren’t accepting bitcoin as currency. All those retailers claiming to “accept bitcoin” are doing is instant conversion of bitcoing to U.S. Dollars or whatever their home currency is. Prices are in local currency, as they always were.

Bitcoin (or another similar idea) may someday be a decent payment mechanism, like PayPal, but nothing resembling a currency. I doubt it will ever be even that.


22 posted on 02/25/2014 9:04:09 AM PST by theyalllie
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To: discostu
"It won’t be the end, there’s always some sort of alternate currency out there."

I'm betting on a tulip comeback myself.

23 posted on 02/25/2014 9:25:18 AM PST by DannyTN
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To: PreciousLiberty

It’s the end of non-governmental regulated crypto-currency.

What I don’t get is how did it happen? Bitcoin was designed to be stored personally, and record keeping was peer to peer proliferating throughout the world as a record in everybodies wallet. Why were people keeping them stored at Mt. Gox?


24 posted on 02/25/2014 9:30:38 AM PST by Usagi_yo (Standardization is an Evolutionary dead end.)
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To: DannyTN

I was thinking more along the lines of S&H Green Stamps and CamelCash. America has a long history with things that aren’t quite dollars.


25 posted on 02/25/2014 9:32:22 AM PST by discostu (I don't meme well.)
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To: theyalllie

Because the expense was in real currency. Bit coins have fluctuated so fast that nobody can keep up with the price fluctuations. So baseline in a stable currency and do currency conversions at transaction time.

Reality is, crypto-currency is heavily used in illegal activities today, it would be just like a Government to watch, wait, and learn as they fake support or sympathy for it, then cut the legs out from underneath.


26 posted on 02/25/2014 9:43:30 AM PST by Usagi_yo (Standardization is an Evolutionary dead end.)
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To: TheDon

Considering how much they manipulate the bond market, bitcoin never stood a chance.


27 posted on 02/25/2014 9:49:46 AM PST by StevieRay20
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To: Usagi_yo

Ian’t that just what I said? Bitcoing is NOT a “real” currency. You could have anything as a middle “currency” in a dollars to bitcoin to dollars transaction. It could be the number “1” as the transfer mechanism. It winds up being just paying with dollars and a middleman taking a cut.

Again, the “we accept bitcoin” is a scam.


28 posted on 02/25/2014 10:01:46 AM PST by theyalllie
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To: Usagi_yo

“It’s the end of non-governmental regulated crypto-currency.”

To some extent, there never was a non-regulated cryptocurrency. However, Bitcoin by design is independent of any particular government. The US may attempt to regulate it, but it will be very similar to trying to regulate barter. I suppose they could legislate that US businesses not accept it, but I seriously doubt that will happen. Even if it did, non-US businesses could still accept it.

Russia has already outlawed it...we’ll see how eager US lawmakers are to emulate Russia. ;-)


29 posted on 02/25/2014 10:07:59 AM PST by PreciousLiberty
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To: Zathras; TheDon
Governments can’t allow this for tax or security reasons.

Doesn't have to be a conspiracy here, just good 'ol human nature at work. Bitcoin had two things working aqainst it -

(1) unless your "currency" is backed by hard assets (like gold), then it's "fiat" money - based entirely on trust. So who are you gonna trust - the US Gov't or a bunch of anonymous programmers scattered around the world? Gov't jokes aside, we all know how Joe Schmo will think.

(2) as word of Bitcoin got out and the price rose, there were a lot of speculators jumping on (with zero commitment to the currency concept itself) that further drove up the price. As soon as the price peaked, they bailed and took their profits, so the price tanked.


30 posted on 02/25/2014 10:14:26 AM PST by canuck_conservative
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To: theyalllie

“Ian’t that just what I said?”

No.

“Bitcoing is NOT a “real” currency.”

Yes it is. From Merriam-Webster:

Currency: something that is used as money

If you can pay for things with it, it is “currency”.

“You could have anything as a middle “currency” in a dollars to bitcoin to dollars transaction. It could be the number “1” as the transfer mechanism.It winds up being just paying with dollars and a middleman taking a cut.”

You’re confused. It is not a “dollars to bitcoins to dollars” transaction. It is a “bitcoins to dollars to goods” transaction. The exact same issue occurs on a site taking Euros for goods, where the goods are priced in dollars. Is the Euro not a currency? Further, one of the main attractions of bitcoins is the low cost per transaction, compared with the other online payment options like MasterCard and Visa.

(BTW, while I suppose technically the number “1” could be a currency, counterfeiting would seem to be problem. Not so with Bitcoin.)

“Again, the “we accept bitcoin” is a scam.”

Nope.


31 posted on 02/25/2014 10:14:39 AM PST by PreciousLiberty
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To: theyalllie

You’re using a too constrained definition of currency.

Let’s make it clearer. If you decide to sell your wares and your wares were made months ago and all expenses where calculated in dollars — how do you expect for them to sell it in Bitcoin without considering the dollar value.

Business like manufacturing and production and R&D require stable currencies. Not an unstable CURRENCY like Bitcoin.


32 posted on 02/25/2014 10:16:30 AM PST by Usagi_yo (Standardization is an Evolutionary dead end.)
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To: SeekAndFind
It's a shame really, it held such promise. The Occupy-Wall Street types who are behind this are so smart. They're the ones who discovered that banks are evil (because they're run by banksters). Banks lend money for mortgages and things and actually expect the borrowers to pay loans back according to the contracts people signed. How despicable and corrupt is that?

I sure hope this super-cool non-bankster currency takes off soon so I too can dump all my hard-earned savings into their esteemed pockets. I'm sure they're all very trustworthy. Anyone who's smart enough to figure out that banks are evil because they're run by evil banksters has got to be really smart.

33 posted on 02/25/2014 10:39:40 AM PST by Cementjungle
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To: ObozoMustGo2012

I saved all my Confederate dollars.


34 posted on 02/25/2014 11:05:00 AM PST by dmz
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To: SeekAndFind

I see $300 rigs on newegg that have a modest CPU with 4 high end graphics cards

How come graphics cards are used for mining bitcoin> Thanks

AMD Could Be Devastated by the Bitcoin Craze (AMD, NVDA)
The Motley Fool
3 days ago - Newegg, a popular PC component digital storefront is (as I write this) ... If AMD is selling more graphics cards, shouldn’t that be a positive for the company? ... AMD’s high-end graphics cards are better suited for cryptocurrency ...


35 posted on 02/25/2014 12:17:43 PM PST by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: SeekAndFind

I see $3000 rigs on newegg that have a modest CPU with 4 high end graphics cards

How come graphics cards are used for mining bitcoin> Thanks

AMD Could Be Devastated by the Bitcoin Craze (AMD, NVDA)
The Motley Fool
3 days ago - Newegg, a popular PC component digital storefront is (as I write this) ... If AMD is selling more graphics cards, shouldn’t that be a positive for the company? ... AMD’s high-end graphics cards are better suited for cryptocurrency ...


36 posted on 02/25/2014 12:17:54 PM PST by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: SeekAndFind

Live by the bitcoin die by the bitcoin. :-)


37 posted on 02/25/2014 1:40:24 PM PST by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: SeekAndFind

chinchillas, emus and beanie babies.

sometimes it is good to be old.


38 posted on 02/25/2014 3:12:23 PM PST by hadaclueonce (Because Brawndo's got electrolytes. Because Ethanol has Big Corn Lobby)
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To: SeekAndFind

I recently watched a local tv news show that tried to explain the Bitcoin idea. After 10 minutes it was clear everyone was clueless. The talking heads, the people they interviewed and me, the viewer.

I literally learned less than what I knew or thought I knew going into the segement.

Reminded me of an Amway guy.


39 posted on 02/25/2014 3:19:41 PM PST by Fledermaus (If we here in TN can't get rid of the worthless Lamar, it's over.)
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To: TheDon

Never attribute to malice that which is adequately explained by stupidity.


40 posted on 02/25/2014 3:39:30 PM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: Red in Blue PA

“Gee, software code doesn’t work as money....who would have guessed it?”

Yeah, I just really hate it whenever my money crashes because of software bug.


41 posted on 02/25/2014 3:40:56 PM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: Usagi_yo

“What I don’t get is how did it happen? Bitcoin was designed to be stored personally, and record keeping was peer to peer proliferating throughout the world as a record in everybodies wallet. Why were people keeping them stored at Mt. Gox?”

My understanding is that there is a chain of transactions of all whole and fractional bitcoins in order to keep a given bitcoin from being owned or spent more than once, and IF you had the computer resources to keep up with this ever expanding chain, you COULD store your own bitcoins on your own computer. But as the chain expands infinitely, so does the computing power to keep your own personal copy of the chain up to date, and so it becomes impractical for more than just a few systems to do that. So, almost everyone elects to “keep” their bitcoins at a site that can keep up with the transaction chain. (This is just my understanding of the situation; I’m not a bitcoin expert. Any money that requires a PhD in computer science to understand is not the kind of money I’d want to own: I only have a Masters Degree in computer science, so am not qualified to own any bitcoins anyway.)


42 posted on 02/25/2014 3:51:53 PM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: catnipman

< tinfoil > To be so naive would be nice. < /tinfoil >


43 posted on 02/25/2014 3:52:46 PM PST by TheDon (Californians are losing their right to keep and bear firearms one firearm at a time.)
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