I think part of the problem, as is shown in bluestangs post, is that supporters are torn between it being a finite commodity or a currency almost treating it as both. On one hand, they're touting it as the next best currency, but then hoarding it as a precious metal expected to rise. I think this fast, high demand for it has hurt it and pulled people away from the idea of wanting to make transactions with it. The idea of things in life being anonymous can be beneficial until it becomes a problem. The purpose of bit coin was to create a currency that wasn't so strictly monitored and filled with legislation and fees. Now, people are demanding a level of monitoring, accountability, and legislation that defeats the very purpose bit coins were started for.
The difference between the situation with Mt. Gox and Enron or WorldCom is that people lost their investment specifically from their investment in those companies - and had someone gone in and hacked their investment portfolio you can be sure someone could have tracked them down. You can't hold anyone accountable with Biycoin because its based around anonymity.
That, and in this case, people weren't invested in Mt. Gox, they were invested in Bitcoin. Mt. Gox is just a place to hold the funds, it'd be like a local bank getting robbed and saying "eh, there's nothing we can do" and there isn't because there's no insurance, no accountability. Lastly, treating this like a run on the banks isn't quite right either. Banks don't have to keep 100% of deposits liquidated, because they loan it out. Mt. Box wasn't loaning money.
Posted via Topify on Android
The difference between the situation with Mt. Gox and Enron or WorldCom is that people lost their investment specifically from their investment in those companies - and had someone gone in and hacked their investment portfolio you can be sure someone could have tracked them down. You can't hold anyone accountable with Biycoin because its based around anonymity.
That, and in this case, people weren't invested in Mt. Gox, they were invested in Bitcoin. Mt. Gox is just a place to hold the funds, it'd be like a local bank getting robbed and saying "eh, there's nothing we can do" and there isn't because there's no insurance, no accountability. Lastly, treating this like a run on the banks isn't quite right either. Banks don't have to keep 100% of deposits liquidated, because they loan it out. Mt. Box wasn't loaning money.
Posted via Topify on Android
Last edited: