Thursday, February 13, 2014

Mt Gox Exchange Collapse

The Mt. Gox exchange is engaged in a slow motion collapse, with accounts not allowed to withdraw in BTC at the present time. There is a $160 arbitrage opportunity as of writing for those brave enough to buy bitcoins at Mt. Gox and to hope that the market doesn't trend down to the Mt. Gox level before the exchange unfreezes and you get them out for sale elsewhere.

The collapse I'm referring to in the title is the collapse of Mt. Gox's credibility. This isn't a load issue, which looked bad but could be passed off as growing pains in a young currency. This is looking at a transaction that failed, not fixing it, and thinking that everything will be alright if whatever was wrong with the code failed infrequently enough. That's never acceptable. It's not the freeze or the technical mistakes that makes Mt. Gox dead to me. It's their poor management attitude that is exposed by the excuses they offer up in their statement justifying events.  Mt. Gox committed suicide by press release and management is too stupid to understand that they've killed themselves.

Is there a Mt. Gox deadpool?