The end of the beginning of Bitcoin.

by admin

This week, and the possible collapse of the Mt. GOX Exchange may or may not be the beginning of the end of Bitcoin, but to borrow a phrase from Winston Churchill undoubtedly is the end of the beginning.

Mt. GOX had lost its place as the leading Bitcoin exchange before the chain of events leading to shady site based in Tokyo to be turned off. A leaked internal document apparently indicates that the site may have been the victim of a major theft, which perhaps more than $ 300 million in Bitcoin “disappeared” from the accounts of the exchange. Pongo “disappeared” in quotes because, of course, Bitcoin has no physical manifestation.

Bitcoin product exists only as a computer algorithm whose origins are unknown and whose ultimate purpose is not clear. It has attracted a diverse collection of users, including people who wish to maintain private relationships, people who may want to keep part of their hidden wealth to the authorities who have access to conventional financial accounts and to the end of the world who think Society it is civilized on the road to hell and, for some reason, will be better in possession of bitcoins when everyone got there.

Bitcoin enthusiasts like to call it a digital currency, or encrypted criptomonecurencia because of its nature. But now it is clear, amid wild fluctuations in the price of Bitcoin, which is not a real currency. It is really a product whose price fluctuates according to their quality and according to supply and demand.

From this week, there are two degrees of bitcoin. One of the varieties of Mt. GOX, which no one can access while the site is down and because it no longer exists at all, only worth one-sixth of all other bitcoin yesterday.

Some people are always willing to offer value, although not very valuable to risk a possibly worthless asset. This is the reason why the shares of companies that are obviously about to go to the back can be traded for a price greater than zero. But the least we know that there are actions, either in tangible or intangible form, and there are government authorities available to vouch for its validity, if not its value. Bitcoin sponsored by any government and banned by some, it has no such support. Ask any MT. GOX member today if it is an advantage because bitcoin holders are maintained. (Officials from Tokyo to New York are already testing the mount. Collapse MT. GOX, and it seems likely some sort of follow-up action).

Real money serves two functions: as a store of value and medium of exchange. So far, Bitcoin only get marks just as a means of exchange, since there is only a limited number of places where you can spend freely. You can exchange your bitcoins (no MT. GOX) for real money, but you can do the same with any other product, such as diamonds or slingshots. Diamonds and slings are worth money, but not money.

Bitcoins absolutely eliminated Shop Value Test wild fluctuations because their prices are not stored value; Depending on blind luck, the they create or destroy. Collecting bitcoins is speculation, not save. There is a big difference.

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