This article is a reflection on the recent article from Schumpeter
about the collapse of Mt Gox. Bitcoins have been a hot topic in the past year
and its uses and (short) history have gained the currency a lot of criticism. Schumpeter’s
article states that 744,400 Bitcoins are missing as a “result of ‘malleability-related
theft’ that may have been going on since the exchange began operating” along
with a software bug, which has been known since 2011, and many other technical
problems related to the Bitcoin currency.
Japan’s thought to tax Bitcoin transactions and profits is
interesting. Bitcoins were invented, in part, to avoid taxes and tariffs and so
I would be curious to further analyze the possible effects of implementing
taxes on the currency, when it is already in a delicate state. The rumors of a death
possibly related to Bitcoins is scary, adding onto the dangerous incidents in
the recent past relating to Bitcoins such as the trading website SilkRoad has
been subject to.
I think the idea of an “outside of the system” currency,
especially one online in today’s technological era, has a lot of potential to
be resilient and have a lot of value, but it is obvious that the Mt Gox and
Bitcoin system has not been sustainable and therefore must change.
Schumpeter article: http://www.economist.com/node/21597651
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ReplyDeleteI also think that the idea of bitcoin is good. The bitcoin is much easier for monetary union than euro. Even though the comapny missed to manage, this meaning did not indeicate the failure about bitcoin.
ReplyDeleteBitcoin has essentially become obsolete as a currency because of mechanical flaws that allowed hackers to easily obtain 460 million dollars! 24.7 million was also stolen from customer bank accounts and an apology was all that could be accomplished. The unstableness of an online currency has brought upon many questions in today's day & age. Can an online currency truly be achieved or will hackers continue to have their way regardless ? As you notice an online currency can generate quite a revenue especially since the exchange rate was $633.18 for one Bitcoin.
ReplyDeleteI believe that with the invention of bitcoins online businesses can progress exponentially. Although, bitcoins have flaws being that hackers are advantageous and are able to obtain large sums of electronic currency illegally, through altercations and development bitcoins can be used in various ways that will be beneficial and safer than using actual currencies online.
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