The Fall of Mt. Gox; The Rise of Bitcoin’s Future

Journalist:
Calvin Tran @@clvnthbld
February 25, 2014
Photo by Antana (Flickr)

Last night marks the indefinite end of Mt. Gox, what used to be one of the largest Bitcoin exchanges in the world. This episode follows legal troubles, lag problems, suspended trade and ending in the resignation of Mt. Gox CEO Mark Karpeles from the Bitcoin Foundation and the shutdown of the Mt. Gox website. Following this week’s continuing news from the Mt. Gox fallout, Bitcoin prices have fallen below $500, the first time in 3 months, in mid November.

UPDATE: Mt. Gox leaves an intriguing message on their site.

Despite the bad news for the exchange, many of the Bitcoin community have seen Mt. Gox in the past few years as a sign of bad business practice and needing replacement by the market – that has finally begun to take place. Also, in response, numerous major Bitcoin and other cryptocurrency operators are joining together in moving forward. Published on the Coinbase and Blockchain.info blogs, 6 industry leaders have signed a joint statement regarding Mt. Gox in regaining trust in the Bitcoin community and reassuring investors.

This move to shun Mt. Gox seems to be the end of the debacle.

[divider][/divider]

The future of Bitcoin seems uncertain as it has continued to be. New regulatory eyes have been set on Cryptocurrencies, including Jordan and Australia.

However, the markets are continuously producing more altcoins as the count recently reached 121 currency branches. In an interview CryptoCoinsNews had with the developer of AnonCoin, development is continuing on making more private and more secure alternatives to Bitcoin.

Besides all the Cryptocurrencies, Bitcoin itself may have cleared the rough. The general consensus on r/Bitcoin and other hubs of chatter is an optimistic attitude of the future as Mark Karpeles and Mt. Gox are left in the dust and the Coin community will move forward both in development and as a financial tool. Headway is continuing to be made each day.

The strongest sign of recovery and strength is within the words of the joint statement:

“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.”

The future looks like a bright recovery for all factions of the cryptocurrency community.

Last modified (UTC): February 25, 2014 22:16

Calvin Tran @@clvnthbld

Calvin Tran is a filmmaker attending NYU's Tisch School of the Arts. He is interested in economics as a way to see the world and inspires him to create media that illustrates the power of freedom and technology in improving all of our lives.