Quote from: alyssa85 on February 26, 2014, 04:11:00 AM

Quote from: BittBurger on February 26, 2014, 03:26:18 AM

Bailouts, even in the form you're suggesting, are counter to what decentralized networks are all about.
Decentralized networks are superior because you don't have to bail out, or save any one entity.

And yet, and yet.....

Mark Kapeles of mtgox bailed out another exchange back in 2011, using 17,000 BTC of his own to make sure the customers of that exchange didn't lose money - and I'm sure they were glad.

Why did he do it? Because it's not in the long term interests of the community to allow large numbers of people to lose money. It wasn't then and it isn't now.

Decentralized networks don't mean "you don't have to bail out or save any one entity" - it just means that there is no govt to organize the bailout and the community does it instead.

Think very hard before you advocate the "selfish at all costs" model which is quite different from a decentralized model.

If these types of incidents start to happen very frequently, one of two things will happen a) bitcoin will die as people will shudder at a non-regulatory environment that practically says to crooks, come and steal there is no comeback and no compensation for the victims or b) regulation will happen because the victims become so numerous, they eventually make up the majority of the community.

I think a bailout is a good idea. Perhaps Mtgox can issue bailout bonds that we can buy for 1BTC each and which pay a % of the profits. That way he raises capital to pay the victims, they clean up mtgox - put in new management, and when it's running properly again, those of us who have participated in the bailout get a small return for our altruism.

A bailout appears unlikely, although I really like your point about decentralized networks:

"Decentralized networks don't mean "you don't have to bail out or save any one entity" - it just means that there is no govt to organize the bailout and the community does it instead.

Think very hard before you advocate the "selfish at all costs" model which is quite different from a decentralized model."

Regarding those who want Gox to die: If it is resurrected in soe form, I'm pretty sure Karpeles will not come with the house. It would effectively be a brand name under different more competent management.