Mt. Gox is Toast?

That was quick. The biggest bitcoin exchange is apparently planning for bankruptcy (click here).

The die hard Bitcoin proponents are arguing that it isn’t a problem with Bitcoin…it is just a problem with that particular exchange.

That’s not entirely accurate. The way Bitcoin is designed, it inherently lends itself to all sorts of problems such as this. I can’t possibly see it becoming a stable and reliable store of value. And as I wrote in an earlier post, Bitcoin will attract the seediest of characters.

This is probably the beginning of the end for Bitcoin. Sure, it may recover a bit and have another run, but fundamentally it was a ridiculous idea to start with, so it will eventually go the path of Cosmo.com.

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