Thursday, February 20, 2014

How Do You Say Bitcoin Ponzi in Japanese?

Here is the latest statement from Mt. Gox that is causing the latest nosedive in the price of bitcoins:
Tokyo, Japan, February 20th, 2014!

Dear MtGox Customers,

Thank you for your patience this week while we are working on re-initiating bitcoin
withdrawals. In addition to the technical issue, this week we have experienced some
security problems, and as a result we had to relocate MtGox to our previous office building in Shibuya (details can be found here The move,combined with some other security and technical challenges, pushed back our progress.

As much as we didn’t want to only provide an “update on an update”, this is the current status. We are committed to solving this issue and will provide more information as soon as possible to keep everyone in the loop.

We are very sorry for the delays and deeply appreciate your kind understanding and
continuous support."

Best regards,

MtGox Team

Note: The security problems being refereed to are angry protesters outside Mt Gox offices, who want either their money or their bitcoins. With over one million accounts frozen, Mt Gox has plenty of reason to be concerned about security.

For my analysis on the possibility that Bitcoin has turned into a Ponzi scheme at Mt Gox see: Did the Government Force Mt. Gox Into a Bit of a Ponzi Scheme-Type Dancing?

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