29 May '15, 5pm

Bitcoin Gets 'Slashdotted' and the Creation of Mt. Gox - Bitcoin Magazine

These advances made it significantly more convenient to buy and sell Bitcoins, but also brought new dangers that threatened to betray some of the currency’s basic principles. Satoshi had designed Bitcoin to eliminate the need for trusted central authorities. It was supposed to be a new money that people could hold on their own, without a bank, secured with a private key that only the user knew. Mt. Gox customers would be moving back to the old model in which a single institution—Jed’s company—held everyone’s money. If Jed offered good security measures, this might prove safer than holding coins on a home computer. But Jed was not a security expert, and if he did somehow lose the private keys to the exchange’s digital wallets, his customers had little recourse. Unlike the banks that Bitcoiners had bashed, Mt. Gox had no deposit insurance and no regulators overseeing the saf...

Full article: https://bitcoinmagazine.com/20621/bitcoin-gets-slashdotte...

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