By Michael Krieger: Before I get to today’s excellent article by one of the co-founders
of “next-gen” Bitcoin company Coinbase, I want to add a few of my own
updated thoughts on the Mt. Gox fiasco.
While I am not at all surprised by the end of Mt. Gox (I predicted it in my piece several weeks ago), it happened much faster and in a much more spectacular fashion than I imagined. So the question here is: What comes next? Well that’s a two part question in most people’s minds, there’s the price action and the future of the protocol itself in the long-term. Let’s start with the first point.
For a while now, I thought the price pattern in Bitcoin might resemble what we saw following the last 10x run up and crash. In that case, we saw a six month consolidation from last spring to the Silk Road shutdown, after which the price exploded 10x again. If such a pattern was to reoccur, we’d be looking at the next move in Bitcoin around June. So we are still very much in a price consolation phase with wild moves within a wide trading range. I continue to work under that assumption.
What concerns me about the “missing” 750,000 bitcoins from Mt. Gox is that we don’t know who has them now. What if it is the feds, or some banking interest?
While I am not at all surprised by the end of Mt. Gox (I predicted it in my piece several weeks ago), it happened much faster and in a much more spectacular fashion than I imagined. So the question here is: What comes next? Well that’s a two part question in most people’s minds, there’s the price action and the future of the protocol itself in the long-term. Let’s start with the first point.
For a while now, I thought the price pattern in Bitcoin might resemble what we saw following the last 10x run up and crash. In that case, we saw a six month consolidation from last spring to the Silk Road shutdown, after which the price exploded 10x again. If such a pattern was to reoccur, we’d be looking at the next move in Bitcoin around June. So we are still very much in a price consolation phase with wild moves within a wide trading range. I continue to work under that assumption.
What concerns me about the “missing” 750,000 bitcoins from Mt. Gox is that we don’t know who has them now. What if it is the feds, or some banking interest?






