MtGox gone – why its good news for bitcoin

I read this in a Skype Room for my Bitcoin Social Network … then had a great chat with a couple of Skype contacts about it. Read on and enjoy the bitcoin news.

Bitcoin Leader MtGox is Gone

As you might have heard, MTGox (ex leading marketplace) went out of business. This might sound like bad news, but we see it as a good news for bitcoin. and here is why

Why is This Good News for Bitcoin

  1. Mtgox issues are nothing new to the market. If you are following the scene, you know that they stopped payouts over a year ago and their troubles were long anticipated and already included in the bitcoin price index. They are already replaced by the promising marketplaces such as Coinbase, Bitstamp and Btc-e. So nothing new here really.

  2. A lot of people worried that Mtgox was dragging the btc price down which is true. Finally after it is officially closed, there is no more concern about it. The price will start rising.

  3. Low bitcoin price is a good opportunity to buy bitcoins cheap. This is probably the cheapest bitcoins you will see this whole year! take advantage!

  4. A lot of newbie traders when they hear bad news they start a “panic sell”. Should I Panic Sell ? Here is the answer In short, where most people see negativity, the rich people see opportunity. Most world riches were made during the time of crisis.

Have You Joined My Bitcoin Social Network Yet?

Some people think you have to invest hundreds of thousands to get involved with Bitcoin and start to acquire it. This is not the case when you can get started for a very low risk of just $12 and let it grow as the community grows. I feel that everyone shold be able to acept bitcoin, especially business people. Every entrepreneur should have a bitcoin account to be able to recieve bitcoin payments … IMHO. If you need help getting started either with bitcoin or set up with a Coinbase wallet to be able to be paid in bitcoin, please skype me here. That link is my Skype contact buttons and Skype resources. Please leave a text IM message first. No calls on skype with out appointment please.

…but back on topic…

Is the loss of MtGox Bitcoin a Problem?

Bitcoin is limited. Thats what insures its value. Only 21 Million bitcoin can ever be mined or created, and we are not there yet, by the way. Some feel this permanent loss of bitcoin is a problem. One Skype contact of mine said this …

One of the fundamental problems of bitcoin though is its inability to create new currency when the old currency is taken out of circulation. With the bankruptcy of mtgox it actually takes another 750,000 bitcoins out of circulation artificially inflating the price until the market realizes that their currency has been cut in half and so has the market availability.

My Response: Bitcoin is Infinitely Divisible

… interesting point Joshua. Thanks for that thought. But doesn’t this increase the value of bitcoin? and this is a good thing, the value is down now and a good time to get some. And doesn’t the fact that bitcoin is infinitely divisible solve that scarcity issue really?

… oh and the skype chat continued and gets interesting…

My highly intelligent and skilled online blogger expert friend Joshua said to me on Skype:
“Its actually similar to the US currency issues we have. When we destroy currency there isn’t enough in circulation we create artificial inflation to compensate but eventually it will collapse. Because there isn’t enough currency in circulation to actually pay the debts out there.”

Inflation, Fiat Currency vs Bitcoin

Yes, interesting. From what I understand, its the creation of currency from nothing, backed by no value. That causes inflation. Thats why I love bitcoin. It could turn out to be an alternative to save us from this endless inflation and potential collapse of so many global currencies.

Every Entrepreneur Should Have Bitcoin as a Payment Option …

Every entrepreneur should have a bitcoin account to be able to receive bitcoin payments … IMHO. I love it when people think Bitcoin is fiat… its not. What they call money is truly backed by nothing … except debt. That is fiat currency. Bitcoin is backed by real value. Its limited, more like Gold and Silver, and as long as its used for payments and accepted by merchants and businesses it has value. yes its value will be volatile at times, and I understand value will stabilize when all 21 Million are mined. Meantime, many are trading in bitcoin volatility.

I like getting small bits of bitcoin, even $2 or $3 worth, as part of my bitcoin community here … its a good thing and it cant hurt to acquire bitcoin at so little risk, right?

2 thoughts on “MtGox gone – why its good news for bitcoin”

  1. “With the bankruptcy of mtgox it actually takes another 750,000 bitcoins out of circulation”

    Not sure if that 750,000 figure represents stolen coin or the current holdings of Mt.Gox at the time of it’s closing.

    The stolen coin will remain in circulation and the current holdings will be taken by lawyers and receivers and some to actual creditors. providing creditors can actually prove ownership of coin deposited at Mt.Gox.

    So no matter which way you look at this it will just mean a transference of ownership of the coin involved legally or illegally.

    I would comment that this is just another phase in the development of the bitcoin platform. There is already an insured repository now available or becoming available

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