The concern isn't directly about the currency Bitcoin.
The concern is that MtGOX was considered a relatively safe place to place your Bitcoins. Many people on/. would defend them when the jabs about how it start out as a card trading site were common.
If you can't trust MtGOX and don't trust yourself (how many people lost information due to incomplete backups at the time of a computer crash?), who do you trust?
At least for US Dollars and other country-based currencies you can keep them in a bank and have FDIC insurance for the first $200K or so. Who would insure an account at a bank in Bitcoins?
(Score: 5, Insightful) by mmcmonster on Tuesday February 25 2014, @08:26PM
The concern isn't directly about the currency Bitcoin.
The concern is that MtGOX was considered a relatively safe place to place your Bitcoins. Many people on /. would defend them when the jabs about how it start out as a card trading site were common.
If you can't trust MtGOX and don't trust yourself (how many people lost information due to incomplete backups at the time of a computer crash?), who do you trust?
At least for US Dollars and other country-based currencies you can keep them in a bank and have FDIC insurance for the first $200K or so. Who would insure an account at a bank in Bitcoins?
(Score: 2) by VLM on Tuesday February 25 2014, @09:01PM
"The concern is that MtGOX was considered a relatively safe place to place your Bitcoins"
What? You mean, like, roughly pre-2011?
(Score: 1) by basecase on Wednesday February 26 2014, @02:16AM
Bitcoin insurance. I'll be a millionaire!
(Score: 1) by Mykl on Wednesday February 26 2014, @05:16AM
Actually, I'm surprised that someone on Wall St didn't come up with this, then purchase a bunch of it themselves!
Just like the pre-GFC Naked Credit Default Swaps, someone could have made a mint out of this crash:N aked_credit_default_swaps [wikipedia.org]
http://en.wikipedia.org/wiki/Credit_default_swap#
Ahhh, unbridled capitalism...