"There was some weakness in the system, and the bitcoins have disappeared. I apologize for causing trouble."
- MtGox CEO Mark Karpeles
"Trouble"? Are you sure that is the word you want to use?
I posted a diary about bitcoin last November, in which I mentioned the primary reason I was skeptical of it - if I get robbed. I summed up my point with this question
I wonder if the libertarian geeks who support Bitcoin have been ripped off yet, and what their opinion of Bitcoin might be afterward?Surprisingly, the answer isn't as obvious as you might think.
Some, believe it or not, are saying this is a good thing. Many still stand by their crypto-currency.
Bitcoin fans are between 93%-95% libertarian males.
Interestingly enough, vulture speculators are swooping in, hoping to scoop up cheap bitcoins that may or may not still exist.
Probably most interesting of all is the new financial product - bitcoin derivatives.
I find the idea of a derivative of a bitcoin a fascinating thought experiment when you consider that bitcoins themselves are little more than the circulation of a complex math problem.
As if you needed more evidence of this, we are about to test the idea in court.
“I think it’s such a new and novel form of currency, there’s a question of whether it really is a currency,” Tannebaum said in a phone interview. “And whether it even has value.”At least the Dutch had tulips after the bubble burst. What will bitcoin holders have?
Speaking of irony, the Dutch are leading the way with bitcoin innovation.
So, the land of tulip mania is now home to another surging trade. If the bitcoin crash fantasies of some come to fruition, the Netherlands will be synonymous again with exuberant folly.
6:10 PM PT: I forgot to mention the issue of regulating bitcoins. Several nations are studying how to regulate bitcoin. It's an interesting idea, but there is a larger, fundamental problem with bitcoin regulation. Namely, what is the point of having/using bitcoins if their are regulated by governments?
Isn't the whole point of having/using bitcoins is because they are a creation of the free market and outside of any government regulation?