A variety of sources are starting to report on the state of MtGox’s insolvency. CCN’s Caleb Chen started to report on today’s crisis at MtGox earlier today. Here’s what we know so far:
Update: The word “insolvent” has been removed from the joint statement released by BTC China, Kraken, Coinbase, and other exchanges.
Update #2: Bitstamp just dropped below the $500 mark for the first time in months.
So What’s Next for Bitcoin?
As Erik Voorhees has already laid out on Reddit, the rest of this week could be a difficult one for the Bitcoin community. Although the problems at MtGox have already affected the price of bitcoins on other exchanges, the reality is that there is still nothing wrong with the underlying Bitcoin protocol. The media will undoubtedly get this story wrong in many different ways, and it may take a few weeks, or even months, for the bitcoin price to recover. Having said that, MtGox needed to finally die if Bitcoin was ever going to become a success. Some MtGox customers have probably lost a ton of money, including Roger Ver, Erik Voorhees, and Charlie Shrem, but the Bitcoin commnity as a whole will become stronger and more stable thanks to MtGox’s demise. I don’t want to sound overly optimistic in a situation where hundreds of millions of dollars were possibly stolen, but “This is actually good news.”
This post was last modified (EST) on 20/04/2014 18:34