Tuesday, February 25, 2014

Bitcoin Schadenfreude

Those Bitcoin Masters Of The World have taken another drubbing today as Mt. Gox closed amid claims that almost a million bit coins have been stolen.

But I hardly think that will kill Bitcoin.

The Bitcoin jingoists are proclaiming the end of amateurism in Bitcoin exchanges, as if this will be the last theft and shutdown.  Anybody who believes that is an idiot.  Just think about it: billions in value in bitcoins just waiting to be stolen by anybody.  Russia and China (and other nations) have huge digital warfare operations that could target those bitcoins, either officially or extracurricularly.  No matter how cryptographically safe, systems can be penetrated through hardware or personnel.  And no government guarantees!  I wonder who will write them insurance knowing this?

But as I've pointed out before, Bitcoin will eventually be swamped with similar currencies and lose value until it is replaced by government-backed currencies.


Grung_e_Gene said...

Where is my 401k?
Where is my online account?
Where is my untraceable currency?
Where have all the Bitcoins gone?

Mike Huben said...

I like it!