Fark - Mt. Gox website has been taken down, shocking many who thought exchanging real money for fake online currency through a website set up to trade Magic: The Gathering cards was a solid idea.
Only now do we hear about this?
MtGox = Magic the Gathering online exchange.
Reading the comments at Fark will restore your faith in humanity - at least until you get to the comments from people defending the idea of bitcoin, who quite obviously have no clue about economics. Here's some examples of the more sane comments:
- Hey everyone, I am starting a new currency based on Gold Pieces from Advanced Dungeons and Dragons! For one dollar, real money, I will give you 100gp! It's a sure thing! Buy now, while my 8th Level Thief's supplies last!
- The system can't scale, is vulnerable to mass bad actors colluding, based on absolutely nothing (like a fiat currency) and is inherently DEFLATIONARY. It was created to give computer nerd libertarians an orgasm, and maybe make them some wealth.
- before the bitcoin "boom" a small article came out about how 75% of the bitcoins were controlled by a cartel. This cartel was manipulating the value and teasing it upwards. when DPR (that one that got caught) was arrested he was paying tithes to this mafia. Now, his (dpr's) wallet had 9/25ths of the remaining bitcoins. when that went off the market you had a 36% contraction in the money supply...the BC's were at about 350$ then and you saw the bounce to around 500$ (reflective of the new currency to demand ratio). Then the idiots heard about it, the Chinese too, and they all started buying. The stuff went sky high....the major share holders started dumping their holdings and manipulating the market. Boom....crash, reality hits and everyone is stuck with junk as worthless as your furry outfits in second life.
- So bitcoin enthusiasts tell you that the safe place to store your bitcoins is at home. Because of course, it makes perfect sense to have $20,000 sitting on your hard drive on your computer, where a hard drive crash or theft or a fire means it's all gone. So, bitcoin enthusiasts will tell you that actually, you're supposed to keep your bitcoins in cold storage, in a "paper wallet" which is stored in multiple places, like a bank deposit box, where no one can steal it.
- If there is one good thing about all of this, it is that this is a relatively quick lesson (say... 2 yrs, compared to a 4 year economics degree) on what it is that the Fed actually does. In other words, anybody who invest in and follows bitcoin closely is going to get a very very real lesson in the history of currency and why it is so complicated the way it is managed now.
and so on.
Short version: stick, fork, done.