End of Bitcoin – the beginning

This week has stopped and the possible collapse of the city. Gox exchange may or may not be the beginning of the end for the Bitcoin – but draw the phrase of Winston Churchill is definitely the end of the beginning.

Mt. Gox Bitcoin has lost his place in front of the leading stock exchange hazy chain of events that led to the closure of the site in Tokyo. Apparently, an internal document leak indicates that the site may have been a victim of a major theft, resulting in possibly more than 300 million dollars to bitcoin "disappeared" from the stock exchange accounts. I put the "disappeared" in quotation marks because, of course, bitcoin has no physical manifestation.

Bitcoin exists only as a product of computer & # 39; a computer algorithm, the origin of which is unknown, and the final destination of which is unclear. He drew a diverse collection of users, including people who want to keep questionable deals in private, people who may retain a portion of their wealth hidden from the authorities, who have access to conventional financial accounts, and those who are thinking about a final peace. civilized society is on the highway to hell and why it is better to own Bitcoin, when we all come back.

Fans like to call Bitcoin is a digital currency or cryptocurrency due to its encrypted nature. But now, amid the wild fluctuations in price Bitcoin, it is clear that this is not a real currency. It's really the goods, the price of which varies depending on its quality, as well as supply and demand.

As of this week, there are two varieties of Bitcoin. One of the Mt. Variety Gox, to which no one can access until the site is not working, and that there can not exist there, yesterday was worth only about one sixth of other bitcoin.

Some people are always ready to offer valuable, albeit not very valuable to risk possible negligible value. That is why the stocks of companies that obviously lost, may trade at a price greater than zero. But at least we know that there are stocks in tangible or intangible form, and there are government agencies that can prove their legitimacy, if not their value. Bitcoin, which is not funded by the government and which is banned by some, has no such support. Ask any Mt. User Gox today – is a plus, as the owners of bitcoin previously supported. (Authorities from Tokyo to New York already zondavali Gokcen collapse of the city, and what's the next action seems likely.)

Real money perform two functions: as a store value and as a medium of exchange. Until now bitcoin it receives only honest assessment as a means of exchange, since there is only a limited number of places where you can freely pursue his. You can change your (not horizontal) bitcoins for real money, but you can do the same with any other commodity, such as diamonds or Honda. Diamonds and Gonda cost money, but they – not money.

Bitcoin is fully pronounced test value, because their wild swings do not preserve the value of the price; Depending on blind luck they either create or destroy it. Gathering bitkoynav reasons rather than to save. There is a big difference.

Bitcoin to cope with certain problems in the real world, such as the sometimes excessive costs of currency exchange and cumbersome nature of the modern banking system, which is justified by the rules to try to prevent everything from failure to money laundering to stealing identity. But the rules exist because there are also insolvency, money laundering and identity theft. As the mountains. Gox vividly illustrates: a system without such guarantees tend to create problems much more serious & # 39; serious than those he intends to solve.

Mountain. Debal Gox may or may not undo all the authority of Bitcoin. We will not know anything until we learn what happened to these computers in Tokyo. The crisis should, however, to deprive all that remains of security veneer, which was supposed to provide a bitcoin. Bitcoin is not more secure than the structure created for its content. In the absence of back-up points have evolved over time in the traditional financial system, it is not safe. Either we re-create these backups in the Bitcoin world, and in this case we need to ask why we are concerned primarily with Bitcoin, or live without them dangerous.

There will always be people who do not trust banks, and the government to ensure their savings. Previously, they ran the cash in the mattress. Perhaps some will continue to use Bitcoin instead. I believe that the chances of Bitcoin become the main form of payment as a debit card or PayPal, is virtually zero. This may not be the beginning of Bitcoin, but the end of the beginning, we saw exactly.