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Bitcoin virtual currency is on verge of collapse
LA Times ^ | February 25, 2014, 7:31 p.m | Chris O'Brien and Andrew Tangel

Posted on 02/25/2014 8:42:32 PM PST by BenLurkin

In a stunning blow to a novel way to buy products and services, the world's largest exchange for trading bitcoin currency shut down Tuesday, triggering a massive sell-off and sending many prospective investors away — perhaps for good.

"This is extremely destructive," said Mark Williams, a risk-management expert and former Federal Reserve Bank examiner. "What we're seeing is a lot of the flaws. It's not only fragile, it's fragile as eggshells."

The mysterious circumstances that triggered the failure of the exchange, Mt. Gox in Tokyo, is only adding to the renewed anxiety over the virtual currency, which just a month earlier had been gaining momentum and supporters.

(Excerpt) Read more at latimes.com ...


TOPICS: Business/Economy
KEYWORDS: bitcoin; bitcoinchart; bitcoincollapse; mtgox
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1 posted on 02/25/2014 8:42:32 PM PST by BenLurkin
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To: BenLurkin

Amazed it lasted this long.


2 posted on 02/25/2014 8:46:34 PM PST by RIghtwardHo
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To: BenLurkin

Someday the dollar will have the same fate.


3 posted on 02/25/2014 8:46:37 PM PST by DonaldC (A nation cannot stand in the absence of religious principle.)
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To: BenLurkin

I wonder who destabilized the currency? Whoever they are, they must have a lot of computing power and experience in decryption algorithms. Hmmm.... I wonder who that would be?


4 posted on 02/25/2014 8:46:41 PM PST by FreeInWV (Have you had enough change yet?)
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To: BenLurkin
"It's not only fragile, it's fragile as eggshells."
True. But so is the dollar. And the legitimacy of the government, for that matter. Both have value only because people believe they have value.
5 posted on 02/25/2014 8:47:15 PM PST by jdege
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To: FreeInWV

Live by the Byte, die by the Byte.


6 posted on 02/25/2014 8:48:08 PM PST by Paladin2
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To: BenLurkin

Suprise, suprise, suprise! :-)


7 posted on 02/25/2014 8:48:26 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: FreeInWV

Based on what I heard on CNBC today, I think it was done using more conventional hacking.

The cyber accounts somehow evaporated.


8 posted on 02/25/2014 8:48:55 PM PST by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
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To: BenLurkin

And in other news, the price of magic beans fell off sharply today...


9 posted on 02/25/2014 8:49:37 PM PST by Hugin
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To: BenLurkin

NOTHING beats the good old American BUCK!

(And I’m not talking about deer, either!;)


10 posted on 02/25/2014 8:49:41 PM PST by Frank_2001
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To: BenLurkin

Never understood the whole bitcoin concept and therefore never participated. Mayhap a good thing on my part.


11 posted on 02/25/2014 8:50:19 PM PST by doc1019
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To: RIghtwardHo

I think it was just a scam to make a lot of money quickly. Those who made their money probably sold off everything quickly.


12 posted on 02/25/2014 8:51:44 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: BenLurkin; a fool in paradise

Buying opportunity fer shore! (buy lo, sell hi,D’UH!)


13 posted on 02/25/2014 8:52:42 PM PST by Revolting cat! (Bad things are wrong! Ice cream is delicious! We reserve the right to serve refuse to anyone!)
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To: Errant

Ping


14 posted on 02/25/2014 8:52:48 PM PST by Jet Jaguar
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To: BenLurkin

Note the source: LA Times. I’m sure this article is just as trustworthy as one about guns or gun owners.


15 posted on 02/25/2014 8:53:17 PM PST by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
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To: coloradan
They quote a Federal Reserve Bank examiner. What do you suppose such a person does, in light of Mike Maloney's video The Biggest Scam in the History of Mankind? Which, I might add, is about the Fed.
16 posted on 02/25/2014 8:55:54 PM PST by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
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To: BenLurkin

http://www.kitco.com/finance/bitcoin/


17 posted on 02/25/2014 8:56:04 PM PST by granite (The heart of the wise inclines to the right, but the heart of the fool to the left - Ecclest 10:2)
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To: Revolting cat!

http://www.johnspeedie.com/healy/goldberg.wav


18 posted on 02/25/2014 8:56:34 PM PST by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
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To: BenLurkin

“Many Bitcoin backers insisted there was a silver lining to the collapse. Bad firms like Mt. Gox would be weeded out and replaced by trustworthy ones that would make bitcoin more credible and secure, they argued.”

Exactly. Since everyone knows that Mt. Gox was the only bad player and now that it as been weeded out, all things bitcoin will now be hunky-dory for all of the rest of eternity.


19 posted on 02/25/2014 9:11:21 PM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: BenLurkin

I’m sure the federal reserve or any central bank wants the competition so they just destroy them like they destroy the metals market daily to keep their paper scam going.


20 posted on 02/25/2014 9:16:56 PM PST by plainshame
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To: BenLurkin

http://en.wikipedia.org/wiki/Tulip_mania

4 centuries ago it was Tulip Mania. Some things never change.


21 posted on 02/25/2014 9:19:35 PM PST by Snickering Hound
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To: BenLurkin

Stupid idea anyway and I’m surprised it lasted this long...


22 posted on 02/25/2014 9:23:42 PM PST by Vendome (Don't take life so seriously-you won't live through it anyway-Enjoy Yourself ala Louis Prima)
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To: RIghtwardHo
Actually, I believe the BitCoin has more value than most currencies (our in particular), and the interesting aspect about the BitCoin is that anyone can "mine" for BitCoins -- it is a process totally independent of government.

Think of BitCoin mining as finding prime numbers. Ok, you start off early and there are tons -- numbers 2, 3, 5, 7, ... you register your discovery and only you has access to those numbers. Now others want to find prime numbers too, and they do, but they can't register your numbers, they have to search harder ... the more people into the mix the harder it is to find the unique numbers that make up the BitCoin algorithm.

Each number found is totally unique, and it is registered. Its value is assigned what the market thinks it is worth. The fact that this exchange closed, I'm wondering if there was external pressure to do so.

23 posted on 02/25/2014 9:27:04 PM PST by MrsEmmaPeel (a government big enough to give you everything you want, is big enough to take everything you have)
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To: Vendome

I really disagree. Explanation above. Not convinced of having government in control of the currency is in the best interests of the people.


24 posted on 02/25/2014 9:29:49 PM PST by MrsEmmaPeel (a government big enough to give you everything you want, is big enough to take everything you have)
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To: BenLurkin

....as it rebounds over $100 today


25 posted on 02/25/2014 9:31:14 PM PST by montag813
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To: BenLurkin

26 posted on 02/25/2014 9:32:18 PM PST by McGruff (Every night has it's dawn.)
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To: catnipman

“Many Bitcoin backers insisted there was a silver lining to the collapse. Bad firms like Mt. Gox would be weeded out and replaced by trustworthy ones that would make bitcoin more credible and secure, they argued.”

That sounds like the typical Libertarian/Austrian crowd. The same people who were crowing a few weeks ago about what a success Bitcoin was.


27 posted on 02/25/2014 9:36:53 PM PST by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: MrsEmmaPeel

It ought to have a valuation based on something real and tangible...

Like the American Dollar!

/s


28 posted on 02/25/2014 9:41:49 PM PST by Vendome (Don't take life so seriously-you won't live through it anyway-Enjoy Yourself ala Louis Prima)
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To: Vendome

Ha! — Exactly so!


29 posted on 02/25/2014 9:44:31 PM PST by MrsEmmaPeel (a government big enough to give you everything you want, is big enough to take everything you have)
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To: RIghtwardHo

Hey I know, let's make a new money that's made of nothing and worth nothing , backed by nothing and see who will buy it!

30 posted on 02/25/2014 9:55:03 PM PST by Baynative (Got bulbs? Check my profile page.)
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To: FreeInWV

Well...it wouldn’t be a government entity...would it? Oh no, they’d never do such a thing.

So maybe it is a cabal of bankers....but no, they are so respectable, they’d never do this.

Who can it be?


31 posted on 02/25/2014 10:16:44 PM PST by Aria ( 2008 & 2012 weren't elections - they were coup d'etats.)
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To: BenLurkin

Did George Soros collapse this??


32 posted on 02/26/2014 2:31:44 AM PST by Ann Archy (Abortion......the Human Sacrifice to the god of Convenience.)
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To: plainshame

I’m thinking you are right on.


33 posted on 02/26/2014 2:40:56 AM PST by antceecee (Bless us Lord, forgive us our sins and bring us to everlasting life.)
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To: MrsEmmaPeel

Agree. I think we will still be investigating this.


34 posted on 02/26/2014 2:42:02 AM PST by antceecee (Bless us Lord, forgive us our sins and bring us to everlasting life.)
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To: RIghtwardHo

You aren’t kiddin.... I just looked at its pricing.

Once again today its got 22% variance on the day.

PT Barnum Was Right.


35 posted on 02/26/2014 3:58:27 AM PST by wonkowasright (Wonko from outside the asylum)
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To: Moonman62
Interesting all the BTC bedwetters. Current rates for BTC on Bitstamp and the other exchanges is back up to 581USD/BTC.

That has gotta bewilder the hand wringers - how is this kind of support possible?

36 posted on 02/26/2014 4:01:51 AM PST by corkoman
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To: jdege
Both have value only because people believe they have value.

Is Gold truly different? I understand it also has industrial uses, but I don't believe that is significant in setting its value.

37 posted on 02/26/2014 4:12:46 AM PST by thackney (life is fragile, handle with prayer)
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To: BenLurkin

In related news, my herd of Unicorns escaped from the barn last night. Dang.


38 posted on 02/26/2014 4:22:50 AM PST by Wolfie
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To: thackney

Which is one of the classic definitions of money:

http://projects.exeter.ac.uk/RDavies/arian/origins.html

Functions of Money
Specific functions (mostly micro-economic)

Unit of account (abstract)
Common measure of value (abstract)
Medium of exchange (concrete)
Means of payment (concrete)
Standard for deferred payments (abstract)
Store of value (concrete)

General functions (mostly macro-economic and abstract)

Liquid asset
Framework of the market allocative system (prices)
A causative factor in the economy
Controller of the economy


39 posted on 02/26/2014 4:25:47 AM PST by abb
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To: BenLurkin

Since I believe that no State shall make any thing but gold and silver coin legal tender in payment of debts, I’m not at all surprised.


40 posted on 02/26/2014 4:26:50 AM PST by Jim Noble (When strong, avoid them. Attack their weaknesses. Emerge to their surprise.)
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To: BenLurkin
Once government set it's mind to it, the agents of said government made sure that this would happen.

That which the government cannot control, it will regulate.

That which the government cannot regulate, it will destroy.

Such is the nature of a totalitarian socialist government.

41 posted on 02/26/2014 4:29:19 AM PST by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: Jonty30

It’s been around longer than an average 3rd world country.

Its downfall was the bubble and it still may still survive to fulfill its original purpose as a coin purse to make purchases to small for credit cards.


42 posted on 02/26/2014 5:55:30 AM PST by dangerdoc (I don't think you should be forced to make the same decision I did even if I know I'm right.)
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To: Lurkina.n.Learnin; nascarnation; TsonicTsunami08; SgtHooper; Ghost of SVR4; Lee N. Field; DTA; ...
Thanks Jet Jaguar.


Click to be Added / Removed.

43 posted on 02/26/2014 7:19:26 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: All

The sell price on btc-e today is about the same or a bit up from yesterday.


44 posted on 02/26/2014 8:17:52 AM PST by mmichaels1970
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To: corkoman
Current rates for BTC on Bitstamp and the other exchanges is back up to 581USD/BTC.

I'm seeing the same thing...570/USD at btc-e. A bit up from yesterday. People are still buying.
45 posted on 02/26/2014 8:27:57 AM PST by mmichaels1970
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To: BenLurkin
Question for the experts:

Last year, I took out a 4th mortgage on my house and invested it all in Bitcoins so I could get away from the evil banksters. If I lose my investment, can the mean Republicans stop me from getting my government bailout?

46 posted on 02/26/2014 8:35:35 AM PST by Cementjungle
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To: mmichaels1970

Yesterday I checked it was at 540...

I just checked today since I seen the LA times report 587...

I think they try to compare volatility with that of the stock market...apples vs oranges, the only things they have in common is they are both fruit and grow on trees.

There may be some similarities but they are different markets, but the fruit cannot be compared.


47 posted on 02/26/2014 10:22:56 AM PST by PoloSec ( Believe the Gospel: how that Christ died for our sins, was buried and rose again)
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To: BenLurkin

AFAIK, that is true. What happened wasn’t a data corruption/tweak issue. Gox left some wallets exposed, and hackers were able to get access to them and steal the coins.
(route the coins to another address)

It’s like if you leave your bank acct info and your password on your machine, and somebody steals your laptop and then drains your bank account, well, that’s not the banks fault and nothing about the way the bank does its business operationally has been compromised or broken.


48 posted on 02/26/2014 10:28:56 AM PST by djf (OK. Well, now, lemme try to make this clear: If you LIKE your lasagna, you can KEEP your lasagna!)
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To: corkoman
That has gotta bewilder the hand wringers - how is this kind of support possible?

"There's a sucker born every minute."

49 posted on 02/26/2014 10:37:24 AM PST by Stentor (Maybe the Goldman Sachs thing is just a coincidence.)
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To: corkoman

If Bitcoin seeks government help it may have a chance for survival.


50 posted on 02/26/2014 11:09:23 AM PST by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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