Trading Site Failure Stirs Ire and Hope for Bitcoin

bitcoinatm26 Feb 2014 / NY Times – The apparent collapse of Bitcoin’s best-known and once-dominant trading platform has provoked outrage among its users, but it has also stirred hopes that the way may now be clear for more established players to transform and rein in a largely unregulated market.

Hours after it stopped trading without warning Monday night, the secretive Bitcoin exchange Mt. Gox said that it would “close all transactions for the time being in order to protect the site and our users.” The action and brief statement left users wondering where their money went, amid accusations that as much as 6 percent of the Bitcoins in circulation were now missing — worth more than $300 million at current exchange rates.

Outside the offices of Mt. Gox in central Tokyo, disgruntled Bitcoin traders and their supporters held up signs that read “Where Are My Bitcoins?”

“I’m filled with disbelief,” said Kolin Burges, a trader from London who flew to Japan this month after the exchange stopped paying out funds. “I was prepared for the worst, but it’s hard to believe they might have lost their coins.”

Yet the unanswered questions about Mt Gox did not shake the faith of many in Bitcoin. With one of its earliest online marketplaces seemingly gone, the world of virtual currency may now be forced to become a more mature part of the financial system….. Read more

http://dealbook.nytimes.com/2014/02/25/trading-site-failure-stirs-ire-and-hope-for-bitcoin/?_php=true&_type=blogs&hpw&rref=business&_r=0

Follow Twitter

Exchange Rate

Cart