Thursday, February 13, 2014

The Bitcoin saga...

...a continuing farce...

After taking an observational interest in this newfound coin, it appears as though the problems discussed here will be too much for the fledeling "currency".

Powerful enemies cause powerful problems...particularly when you question their legitimacy and threaten to de-scale their influence.

And now some bitcoins have been "stolen".  When the list of suspects includes some of the world's most powerful countries, good luck.

Dear MtGox Customers and Bitcoiners,

As you are aware, the MtGox team has been working hard to address an issue with the way that bitcoin withdrawals are processed. By "bitcoin withdrawal" we are referring to transactions from a MtGox bitcoin wallet to an external bitcoin address. Bitcoin transactions to any MtGox bitcoin address, and currency withdrawals (Yen, Euro, etc) are not affected by this issue.

The problem we have identified is not limited to MtGox, and affects all transactions where Bitcoins are being sent to a third party. We believe that the changes required for addressing this issue will be positive over the long term for the whole community. As a result we took the necessary action of suspending bitcoin withdrawals until this technical issue has been resolved.

Addressing Transaction Malleability
MtGox has detected unusual activity on its Bitcoin wallets and performed investigations during the past weeks. This confirmed the presence of transactions which need to be examined more closely. 

Trade balance wars...

...a continuing saga...

Insularity goes both ways.  With Europe contiuing along the (well treaded) path of mercantilistic policy, the rest of the world has already gotten the joke.  Pre-emptive depreciation strikes in a global financial war, indeed.  I have written about this in a slightly different context before, but its instructive to note the tone of policy makers.

(Arnaud Montebourg, French Minister of Industry)

What is your view on the level of the euro?

As Minister of Industry, I believe that the euro is out of his nails
(french phrase: "sorti de ses clous", meaning way outside the norm) in
an overstatement that has become problematic in the eyes of all our
businesses. Between 2012 and 2013, it has appreciated over 10% against
the dollar and more than 40% against the yen. All while between the
third quarter of 2012 and the third quarter of 2013, the growth
rate was 3.4% accumulated in the United States, 2.3% in Japan and -
0.2% in the euro area! We have the most depressed area in the world and
the currency appreciates most in the world. This is grotesque.

Do not you afraid to start a currency war?

But it already exists this war! We are the victims and we are the only
ones not to react!