Is this a beginning of the end for Bitcoin?

It was not long ago when Mt.Gox denied the allegation of losing bitcoins worth $375 million. Yes, it didn’t lose 750,000 bitcoins in fact it lost much more and filed for bankruptcy. A popular business such as Mt.Gox does not goes offline without a reason and after a week of speculation it has been confirmed. The company was facing serious financial issues as well as security issues which resulted in shutting down of trades and restricting consumers from withdrawing their money.

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Mt.Gox files for bankruptcy; Bitcoin in trouble

I feel sorry for bitcoin users because since a couple of months every company is taking advantage of the soft hearts of their consumers. Mt.Gox claims that it has $63.9 million in liabilities while only $37.7 million of assets in hand. A few days ago they denied the rumor about losing bitcoins worth $ 375 million. Today, Mt.Gox says that it has lost 850,000 coins worth 500 million and files for bankruptcy. Previously, a lot of users were victims of thefts when it comes to bitcoins and immediately after the thefts the company shut down.

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To me it seems like a nice way out of the business by stealing the bitcoins mined by consumers and bring a close to any transactions or withdrawal of money. And since the consumers do not or can not file a case against the company, nothing can bring back the stolen bitcoins. Mt.Gox suspended trading in February blaming a bug in the process and then ultimately the exchange went offline. US and Japanese authorities are looking in to Mt.Gox’s business and financials but since the company’s fate is sealed what about the customers? I am sure Mt.Gox catered to a large amount of consumers with thousands of bitcoins.

Bitcoin has become extremely popular and slowly becoming a valid currency for buying goods and services so its a high time that the governments start looking in to such things.

Source: The Verge


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