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The Gox situation is unfortunate but I think it stems from the weaknesses and corruptability of centralized systems (in this case the Mt Gox Bitcoin Exchange) r
by torbjorn 13y ago
The Gox situation is unfortunate but I think it stems from the weaknesses and corruptability of centralized systems (in this case the Mt Gox Bitcoin Exchange) rather than flaws within Bitcoin.
Decentralized exchanges are in the works that should prevent similar situations in the future.
- hershel 13y agoassuming exchanging bitcoin with usd becomes illegal with big enough penalties for both sides, what value would a decentralized exchange have, except for illegal businesses?
- tlrobinson 13y agoThat's a fairly large assumption.
- icebraining 13y agoThere are other currencies besides USD.
- baddox 13y agoThere is a lot of value in illegal businesses.
- torbjorn 13y agoA distributed exchange would have even more value if USD to BTC transactions were criminalized since there would be no central agency or person to strike at and shut the exchange down.
- alwillis 13y ago>The Gox situation is unfortunate but I think it stems from the weaknesses and corruptability of centralized systems (in this case the Mt Gox Bitcoin Exchange) rather than flaws within Bitcoin. Mt. Gox has been a poorly run company as long as it has existed; it didn't help that its custom bitcoin wallet implementation didn't take transaction malleability into account, even though it's been known about since 2011: https://bitcoinfoundation.org/blog/?p=418 https://bitcoinfoundation.org/blog/?p=418 Remember that Mt. Gox has about 20% (down from 80% back in the day) of Bitcoin's trade volume; the other major exchanges properly addressed malleability and didn't have the same problems.