Posted 02/13/2014 at 9:30 AM
Posted 3 years ago
Mt. Gox was spearheaded by the brainchild Jed McCaleb, who virtually turned water into wine by taking his company from card-trading, to the top-of-the-hill, worldwide #1 Bitcoin exchange. Yet faced with the tricky morass of legal in and outs of operating Bitcoin, Mr. McCaleb sold Mt. Gox sight unseen to Tokyo-based French business people in 2011. Mt. Gox then proceeded to sail along on choppy waves, heads held high, albeit, sometimes adrift, in a huge cash-strewn ocean, but maintaining itself as the number one Bitcoin trading outpost, nonetheless.
Yet here’s the problem that has arisen in the last six months: Bitcoin users are having quite a hassle with withdrawing their funds. So what good is Bitcoin?
Fast forward to a few days ago: Withdrawals have been halted. Mt. Gox cited “transaction malleability” to be the problem. Yet the Bitcoin Foundation acknowledged other exchanges putting the clamps on withdrawals, also.
So, the mysterious McCaleb is free to wander and off he has gone on to a new project. It’s the Secret Bitcoin Project. In an aloof, quick message, he writes: “When I sold Mt. Gox a few years ago, Bitcoin was trading at less than a dollar. Today, Bitcoin exists in a new environment. Mt. Gox is struggling to keep up. Now I am building something that will be better for Bitcoin and better for you. I’m looking for alpha testers. – Jed.”
Did you know that Mt. Gox stood for Magic: The Gathering Online Exchange?
As far as “magic” goes in business, that means either sustaining an illusion, or you are genuinely real, real good at what you do.
The magic shine of Bitcoin’s luster is fading with each and every passing day.
Mr. McCaleb had a great idea, fraught with all the labyrinthine legalities that a new currency entails.
I play Guitar Hero at the arcade when I see a movie with my darling, and I remember once, the machines not working right and losing 10 coins. Apologetically, I was given 10 of these shiny gold coins that had “1010101010” imprinted in a circular fashion on them, and I thought to myself it’s sure a nice keepsake. I didn’t think to lug them around until the next occasion to see a movie at the local AMC theater.