Is this the end for Bitcoin? Have we finally seen a weakness in the new potential “monetary” system? Just today Mt. Gox, the biggest and best-known Bitcoin exchange, was expected to file for Chapter 11 bankruptcy. There have been reports of extreme theft concerns when dealing with the viability of the electronic currency. Bitcoin prices have fallen below $500 a piece for the first time since November, when prices were as high as $1,200.
So much for all the hype Bitcoin has gone through. I personally thought Bitcoin would see solid growth over the next couple of months leading into the summer and possible reach $1,400. But another side of me also believed that Bitcoin would have its’ dark days. However, I did not (along with many others) expect this to happen so soon. It is estimated that Mt. Gox lost 744,000 Bitcoins, or about 6 percent of the pseudo currency that’s in circulation worldwide. With this whole concept of complete electronic currency, we were bound to run into some type of hackers that would eventually create this downfall.
“With Bitcoin/crypto just recently gaining acceptance in the public eye, the likely damage in public perception to this class of technology could put it back 5-10 years, and cause governments to react swiftly and harshly.” Two-Bit Idiot blog mentioned who also first broke the story.
The unfortunate truth is that this is a serious hinder in the entire Bitcoin concept. But what I am really curious about, is whether or not this is problem that will eventually bring back the commotion, or is it the end of Bitcoin? Many people of the older generations take Bitcoin as some silly currency. They do not understand the full value that it would have especially with our technology driven world. Because of their mindset and with what has happened with Bitcoin, over the next couple of days, weeks, and months, we should expect a tremendous amount of criticism trying to finally take down the whole idea. But why should we do that? Why can’t we learn through our mistakes through these early ages of electronic currency? I could almost guarantee there were flaws when the American dollar first took off. There were flaws, theft, and many other problems with our currency then, and there are still problems today! Although this day in age everyone expects everything to be perfect when it deals with our currency or a new potential one such as Bitcoin. But overall, there will be steps made to ensure Bitcoin does not have a total collapse.
“The wider Bitcoin industry is seeking to both distance itself from Mt. Gox and offer reassurance about the virtual currency’s future. The chief executives of six major Bitcoin exchanges and other businesses pledged in a joint statement to coordinate efforts to assure customers of the security of their funds,” The Wall Street Journal addressed.
Looking at it from a ‘big-picture’ perspective, I do not believe the end of Bitcoin is in sight. Although our world might always have its’ thieves, whether it’s with Bitcoin currency or with each country’s current currency, our world is also just at the beginning ages of our day in technology. Our generation has the intelligent minds to continue to strengthen the Bitcoin system. Although I do believe this is a tremendous fault in the system, Bitcoin will resurrect to gain strength again even in the next couple of months.