The price of the virtual currency bitcoin plummeted this week after a leading bitcoin exchange, Mt.Gox, shut its doors. The Tokyo-based firm already suspended customer withdrawals two weeks ago, citing a possible flaw in the system. But on Monday Mt.Gox suddenly closed its website and disappeared.The site is now blank aside from this brief message:
"In light of recent news reports and the potential repercussions on MtGox's operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. We will be closely monitoring the situation and will react accordingly."
Mt. Gox was a founding member and one of the three elected industry representatives on the board of the Bitcoin Foundation. A bitcoin exchange since 2010, Mt. Gox is a relatively old player, having grown quickly when there were few alternatives.
The main exchanger for Bit Coin is gone, the exchange rate of bitcoin is pretty low. I read somewhere you can cash out but you cant buy bitcoin. Weird isnt it ?
Yesterday you have USD10 worth of BTC, today you have USD1.3
If you want conspiracy, heres something.
Somebody bribe MtGOX to stop its operations, destroy the bitcoin value and the market follows suit.
Somebody with really big bucks and hate bitcoin.
February 26th 2014
Dear MtGox Customers,
As there is a lot of speculation regarding MtGox and its future, I would like to use this opportunity to reassure everyone that I am still in Japan, and working very hard with the support of different parties to find a solution to our recent issues.
Furthermore I would like to kindly ask that people refrain from asking questions to our staff: they have been instructed not to give any response or information. Please visit this page for further announcements and updates.
reply to post by RickinVa
you summed up my feelings about bitcoin exactly....nobody knows who controls the bitcoin algorithm data for it (an actual person had to write the program, after all), or, if it has a backdoor. nobody can nail down what actual real ACH account your money has been sent to, to facilitate the transaction. you're provided a "wallet" on some server, somewhere, maintained and run by somebody. and, you are given a long-ass encrypted password, that apparently you think no one else knows about, because, as we all know, the internet is 100% trustworthy (rolls eyes)....my opinion?...it's a modern day digital Ponzi scheme.....as long as people are putting in real money for bitcoin, they can handle transactions, but when the withdrawals become too much, shutdowns and stalls happen....I'm shocked, I tell you!!...just shocked!!
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
Based on what I observed during my visit and my experience in security, it appears that the Coinbase system contains the expected funds and their cold storage system and process appear to be operating according to security best practices.
Andreas M. Antonopoulos