The Bitcoin Collapse

bitcoin binary options trading

The Bitcoin Collapse

What will become of Bitcoin consumers?

 

Pips Wizard Pro

The Bitcoin Collapse

The apparent collapse of the Tokyo-based exchange does not mean that all bitcoin holders stand to lose their money.

Mt. Gox is one of many bitcoin based companies who have moved into trading this type of asset. Traders who have used this exchange may be the ones to lose out of this companies fall as the fate of Mt.gox is yet unclear.

This fall has clearly outlined the importance of trading with a sturdy company who have the management skills to manage a company trading in a volatile market.

 

It is only speculation, but it is believed that approximately 744,000 bitcoins with a market value of about $380,000,000 have been stolen or are mysteriously missing. There has been no statement by Mt. Gox as of today February 26th 2014) whether this is actually true.

Being an unregulated online currency, the bitcoin traders have no regulatory protection and will find themselves on their own having to incur full financial losses if Mt. Gox will go out of business.

 

This crisis will undoubtedly make these online consumers be perceptive when investing their capital next time.

There are some key questions that new bitcoin consumers need to ask the exchanges prior to investing their capital with them:

How secure are their servers?

Where do they stand with their capitalization?

Will the consumers’ deposits be insured?

 

As this market will undoubtedly become regulated, the next bitcoin exchange companies will be capitalized as all other financial companies are and will be managed by professional managers with experience in other financial markets.

Until the Bitcoin trading will become regulated it is adviseable to trade this asset with one of the leading online brokers. Make sure your capital is safe and a regulated broker will usually give you that security.

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