Quote from: mjcmurfy on October 22, 2011, 11:39:47 PM

Quote from: P4man on October 22, 2011, 11:18:40 PM

I have more hopes that Mt Gox' legal issues and the consequences of that will put a brake on wild speculation.

I hope this happens. But do you think that bitcoin could withstand the loss of MtGox, which has managed to establish itself as a crucial cog in the bitcoin economy? I think negative PR on that scale would trigger a massive outflow of goodwill and capital from the system. It may end up being a devastating blow.

Though, with no way of easily cashing out bitcoin for fiat, speculators would then be forced also to take as bullish an outlook for bitcoin as they are currently forcing bitcoin merchants to do. I don't know what the outcome of all that would be, but I think it probably would result in a much better economic environment for everyone involved.

If bitcoin cant survive the loss of Mt Gox, it doesnt deserve to survive. Sure there will be a PR blowback, but I think it would be one the best things that could happen for bitcoin to not have an easy way to cash in or out, for a while at least. That would really force everyone to use it as banter, as the only way to obtain bitcoins would be mining or conducting trade. The only way to unload your bitcoins would be buying stuff with bitcoins. Circulation of bitcoins would drop dramatically, but actual trade would likely spike and me thinks thats precisely what bitcoin needs.