Mt. Gox Bankruptcy Postcard

I, like many others, had Bitcoins wrapped up in Mt. Gox when they halted all trading. Thus we were unable to get our BitCoins/Money out.

Today I received this in the mail from Mt. Gox.

View as PDF

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BitCoins ($400-750 in three days)

BitCoins exploded. When the price was in the ~$400 range I was hesitant to think they would ever break the $600 dollar mark. Now, $750 was the high for today (November 18th, 2013). It's scary to watch and not think of the DotCom Bubble.

(NASDAQ Closing Value 1994-2008)

(MtGox Average Price June-November 2013)

This isn't the first time that BitCoin has been on a bubble, in the beginning of April this year the prices were ~$220 a coin and then the market crashed to ~$70 a coin on April 16th. That was a two week period. In two weeks of November the prices has gone from $250 to ~$700, the fall (if it happens) will be just as hard.

There is hope that this is just the beginning. BitCoins have left the realm of "That stuff you buy drugs with" and has become a legit currency.

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BitCoins!

If you've been anywhere beyond Facebook on the web recently you've heard of BitCoins. I've always been into BitCoins, I used to mine them but that became boredline unprofitable after the BitCoin crash so, I stopped mining and focused on other things to learn.

Now that the market has regained it's composure and it seems all the bad press around BC is gone, I decided to buy $10 USD worth of BitCoins from Coinbase.

November 7: 0.023 = $10
November 13: 0.023 = $9.30

While this is a loss of 70 cents it's not a huge loss. I wanted to see if I could: (a) Buy BitCoins (b) Make a profit off of BitCoins. So far I have accomplished (a) now the real test is (b).

If all goes as planned I will buy more BitCoins.

But that's where the problem with BitCoins lies, they're not like Stocks or Bonds, they have "real-world" value. Real currency has a definite vaule, $1 USD is $1 USD all day. Where as 0.023 BC is $10 one day and $9.30 six days later. Some BitCoins are bought only to be sold at a later date for a profit (as I am doing) and the other side of that is that some are actually used for purchases of things.

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