Wednesday, April 2, 2014

Mysteries over Mt.Gox bankruptcy won't ebb away as 'old wallets' and protocol discrepancies are revealed - Bitcoin market not overly shaken even though more bankruptcies and hacks are made public

Dear forum!
What a turbulent last month. Mt.Gox is down for good this time with the responsible people being questioned in the US for multiple allegations. That plus the bankruptcy case it filed in Japan and other countries the exchange had funds.
That could have been it and nobody would given a literal sh*t (except the people who lost money on Mt.Gox - no disrespect was meant.) - but hey... a Bitcoin story without excitement twists and turns and more questions than answers that could fit in a newspaper and everybody would understand immediately? Nah!
Shortly after Mt.Gox announced the alleged theft of 854000 of their managed Bitcoins, an "old service wallet" was discovered containing 200000 Bitcoin. Given that Mt.Gox stated a loss of 100000 of their own Bitcoin the 200 grand seem to be an odd number. Speculations are abundant and we have our own ideas about this occurance, but we don't want to judge anybody as long this fund loss is still investigated.(Source)
If that was not weird enough, 2 swiss guys published a paper in which they claim that they have recreated Mt.Gox transactions logged in the blogchain from the timeframe stated by Mt.Gox as the time of attacks. According to the still unconfirmed paper Mt.Gox could only have lost a total of 345 Bitcoin in the stated timeframe through the transaction malleability exploit. (Source)
I am sure more weird discoveries await us in terms of Mt.Gox.

Meanwhile the rest of the planet is divided as whether Bitcoin is a currency or not and most states now opted for a treatment like it is place for stockmarket exchange shares where taxes depend on the time between trades where profits become tax free if the Bitcoin amount in question is held for 12-16 months (time frames vary from country to country).

It seems the world has understood that one or the other crypto-currency will always survive, it might as well be Bitcoin. If it will be Bitcoin surviving the battle though isn't sure.
Time, ease of use and application range for the user will tell which protocol will satisfy its users best.

By the way - the decreased exchange rate has the splendid side effect that the Bitcoin amounts paid are getting higher ;-)
Visit coin-inc.com to find the best offers and our handy Bitcoin surf bar.

See you soon forum!

Yours, Tim

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