By William K. Black, Associate Professor of Economics and Law at the University of Missouri-Kansas City and author of The Best Way to Rob a Bank is to Own One. Originally published at New Economic Perspectives
via Bill Black: Bitcoin Frauds Keep Growing
SAN FRANCISCO — A concentrated campaign of price manipulation may have accounted for at least half of the increase in the price of Bitcoin and other big cryptocurrencies last year, according to a paper released on Wednesday by an academic with a history of spotting fraud in financial markets.
via Bitcoin’s Price Was Artificially Inflated Last Year, Researchers Say
It looked like a pump and dump. Half of all bitcoin is owned by 100 people. They are mostly anonymous. They can pump and dump and make a fortune and no one would be able to trace them.
Bitcoin is the worst investment of 2014
The year started with Bitcoin advocates making grand claims about how Bitcoin was going to be the death blow to statism, taxes and the welfare state and usher in a new golden age of capitalism. The year ended down 52% down.
MtGox knowingly traded non-existent bitcoins for two weeks, filing shows
Every Bitcoin devotee claims this simply could not happen. you can’t buy and sell bitcoins that don’t exist. Fractional reserve isn’t possible.
So how did it happen?
Bitcoin Wound Up Being Just As Broken as the Corrupt Banking System It Was Trying to Kill
Bitcoin became a thing based largely on the enthusiasm of the same types of people who pushed gold to $1,921 an ounce in 2011 – not surprisingly, this was shortly after Congress’ Big Red Shoes performance in the debt-ceiling crisis that August. Both were based on the notion that Congress, the Fed and the European Union were running traditional currency into the ground. This was always a crazy idea. It was a reaction to emergency monetary policy rooted in a mix of a misunderstanding of what former Fed Chair Ben Bernanke was doing and cultural-political alienation that dates back to the right’s reaction to the sixties, if not the dawn of time. …
But the real point is that if you have to even ask what Bitcoin is, Bitcoin really isn’t much
The value of bitcoins stolen seems to be greater than the value of bitcoins traded for goods and services not related to bitcoin speculation. When you point this out you are branded a hater.
“Bank” that claimed to solve Bitcoin’s security problem robbed, shuts down | Ars Technica
I wonder if any of the people who dismissed the gox theft victims as idiots lost bitcoins at flexcoin.
MtGox Files For Bankruptcy Protection
Owner Mark Karpeles said, ‘There was some weakness in the system, and the bitcoins have disappeared. I apologize for causing trouble.’“
The freedom loving folks from Mt Gox demand protection from the state to protect them from their incompetence. At what point will they demand bailouts?