Mt. Gox's Downfall Shows the Power of Creative Destruction: Erik Voorhees Interview

Bitcoin evangelist and Coinapult Cofounder Erik Voorhees gives us his thoughts on the demise of Mt. Gox and losing nearly $300K in Bitcoin… why cryptocurrency exchanges are a threat to government and the banking industry… what really happened with China’s "ban" on Bitcoin…and advice for investing in cryptocurrencies.

Here are a few excerpts:

"You know, Mt. Gox was … really the first Bitcoin exchange. They got started by this hacker guy who put it together and was suddenly running a $100 million Bitcoin exchange. That's sort of a recipe for disaster. … This is the ultimate creative destruction of capitalism. There's a huge market opportunity for people who know how to do this right, to step in and do it—and already we have exchanges that are better run than Mt. Gox." Continue reading "Mt. Gox's Downfall Shows the Power of Creative Destruction: Erik Voorhees Interview"

Is Bitcoin The New Gold Standard?

The last month or so has been an interesting one for Bitcoin (BITCOIN:BITSTAMPUSD) believers. No doubt you have heard about the collapse of Mt.Gox, the largest Bitcoin exchange in the world and the missing millions.

If the collapse of the Mt.Gox exchange was not enough, Newsweek announced to the world that they have tracked down the mystery man who they claim invented Bitcoin. The gentleman’s name is Satoshi Nakamoto and it has long been assumed to be the pseudonym for the man (or woman) who created Bitcoin. Satoshi Nakamoto subsequently denied that he was the brains behind Bitcoin, so the mystery continues, or does it? You would think with a major Bitcoin exchange collapsing, all the controversy and lost funds, Bitcoin would have collapsed to zero, as everyone rushes to cash out their virtual currency.

But oh no, the opposite appears to be happening when you view the recent Bitcoin (BITCOIN:BITSTAMPUSD) market action. One thing is for sure, the Bitcoin market is not going down anytime soon based on the technical charts that I look at.

This is a follow up post to my earlier Bitcoin post. Now you can see Bitcoin charts and quotes on MarketClub and on our public website, The truth is, Bitcoin trades just like any other market, including gold.

Is Bitcoin the new gold standard?

Chart Legend & Technical Picture For BITSTAMPUSD (Black Numbers)

1. Classic base
2. Classic chart breakout
3. Double top
4. Double bottom
5. Downtrend line
6. Double bottom
7. Watch for breakout
8. Trade Triangles

Bitcoin (BITCOIN:BITSTAMPUSD) technically looks a lot like gold did after it made its double bottom last December. The key level to watch in this market is a break over (5) on the chart. Any move over $700 should be viewed as extremely bullish for Bitcoin, signalling a move to test the $1,000 area.

Every success with MarketClub,
Adam Hewison
Co-Creator, MarketClub

Bitcoin Bites The Dust

The Bitcoin world is in turmoil this morning as Mt.Gox, once the largest Bitcoin exchange (based in Japan) in the world, closed its website amid rumors of the biggest hacking heist of all time.

You may remember that Bitcoin was created as an alternative currency and that it took some serious programming and algorithms to create it.

This morning there were allegations that there has been a $350 million hack at Mt.Gox. Mt.Gox appears to have closed its virtual doors and may no longer be in business. Bitcoin insiders have been bracing themselves for weeks against something like this happening, but the magnitude of the virtual heist has shocked even the most astute Bitcoin observer.

This morning there are people speculating that Bitcoin (BITCOIN:BITSTAMPUSD) is the biggest scam and Ponzi scheme ever developed in the virtual world, but I am going to withhold judgment as, quite frankly, we do not know all the facts. This may be the end of Bitcoin or may be just a big bump in the road for this virtual new currency-the jury is still out. Continue reading "Bitcoin Bites The Dust"