Ask any Modern Monetary Theorist and they’ll tell you the difference between Bitcoin and a currency is that it’s not legal tender, that is to say that it’s not mandated by the State as acceptable payment for all debts, public and private.
Instead this libertarian fantasy is a mere illusion of a commodity, not even as useful as gold which you can’t eat but at least has the properties of non-reactivity, conductivity, and ductility.
Third cryptocurrency exchange becomes hacking victim, loses Bitcoin
By Charlie Osborne for Zero Day
March 6, 2014 — 10:27 GMT (02:27 PST)
Poloniex, a Bitcoin trading post similar to Mt. Gox, has lost 12.3 percent of the Bitcoin stored in hot wallets on the website. However, in stark contrast to how Mt. Gox CEO Mark Karpeles handled his company’s Bitcoin losses, the owner of Poloniex, Tristan D’Agosta — a.k.a. Busoni — admitted to the loss and asked users how they would like to be compensated.
Mt. Gox, once the dominate Bitcoin trading post online, closed its doors last week and filed for bankruptcy protection in Japan following years of undetected infiltration that resulted in the theft of 750,000 customer-owned Bitcoin, as well as Mt. Gox’s store of roughly 100,000 coins, in total worth almost $500 million. System design flaws, hackers and poor accountancy practices have been blamed for the massive financial losses.
Flexcoin follow suit and closed after hackers stole 896 Bitcoin — worth approximately $606,000 — and the trading exchange did not have the funds or resources to recover.
For Bitcoin, Secure Future Might Need Oversight
Farhad Manjoo, The New York Times
MARCH 5, 2014
To save their nascent currency, Bitcoin’s backers may be forced to alter their philosophy and embrace the same messy humans – auditors, insurers and even regulators – that the currency’s most ardent supporters have long abhorred. This raises two difficult questions: Can human oversight integrate into Bitcoin’s free-for-all ethos quickly enough to render Bitcoin safe? And, can Bitcoin be made safer without tamping down on the very openness that proponents say makes Bitcoin such a cheap, efficient and innovative financial platform? At the moment, the answers are still very much up in the air.
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Some in the more mainstream part of the Bitcoin world – firms that have sought venture capital and are trying to appeal to ordinary investors and large businesses – say they’re up to the challenge. They are working to set up stringent technical and financial audits of trading sites, and to create insurance mechanisms so that holders of Bitcoin won’t be wiped out by catastrophic losses like the one at Mt. Gox. There are even efforts to pursue government oversight.
CEO of bitcoin exchange found dead in Singapore
By Associated Press
Published: March 6
The American CEO of a virtual currency exchange was found dead near her home in Singapore.
Postings on her Facebook page showed her to be a believer in the potential of virtual currencies.
Last month, she linked to an article on entrepreneurs suffering depression, commenting above the link: everything has its price.