MtGox Insolvent - Confirmed by Coinbase

http://blog.coinbase.com/post/77766809700/joint-statement-regarding-the-insolvency-of-mtgox

Wow.

 

Yeah, I realized mtgox was down, and all they said was loading... The CEO left the company so

 

Wow, damn. I didn't think this was going to happen.

 

This is why I never used MtGox period. When I was researching I read that they can take weeks to finish your transaction or let you withdraw.

 

Even when I considered BTC for a brief moment, I knew MtGox wasn't the exchange for me. That being said, none of the exchanges really stood out to me at the time and I find them hard to trust, but they seem much better than Liberty Reserve exchanges.

 

Well said, I completely agree. Hopefully something like this doesn't happen again.

 

The problem is that Bitcoin is now highly being based around trust. This isn't the first time something like this has happened and it might not be the last. How many more successions must it take before the trust is lost in Bitcoins?

If there is no trust in the currency, then no one will use it, period. But Bitcoins were designed specifically to NOT be based on trust, that is, to be completely anonymous.

Why is it that since MtGox has collapsed, that EVERY CEO of all the other highly regarded Bitcoin companies had to make an express statement about the reliability of their systems? Because they know, for a fact, that if the trust is lost in Bitcoins then the currency is doomed.

Whilst I am a believer that Bitcoin will continue to rise, I do believe that it's very corrupt, without government backing there can be no firm foundation for Bitcoins to grow upon

 

Well the thing is that people project what they know about currency on it. The market isn't supposed to have middle men. It was designed to be anonymous and to be directly exchanged to remove the need for centralization.

 

The reason people use bitcoin is because it isn't affiliated with any governments/regulated. This isn't the first time a large company affiliated with the BTC market ripped off their users (though it is the biggest).

 

True. Plus if governments got involved it would be Taxed, the biggest asset to BTC is the low fees to move around and withdraw bitcoins, which saves the users TONS rather than a government regulated money transfer.

 

Well mtgox filed bankruptcy.

 

What do you mean?