Attorney Greenberg On Bitcoin Exchange At Mt. Gox

Diversify Your Investments!
When I first began my studies, investments and investigations into Bitcoin and Litecoin and other alternate currencies. Mt. Gox was some mythical and mysterious “place,” unreachable by the lowly and unconnected.

Now I see that it is a company run by people, and is therefore susceptible to the same weaknesses and imperfections that are common to ALL people and businesses….arrogance, greed, mismanagement, technical flaws, hacking and the like. I do not know which of these weaknesses caused this disruption but there are lessons here.

The most important lesson is that Bitcoin has survived this test. Mt. Gox was almost too big to fail but in the end, the BTC (Bitcoin) world was (and is) so diverse and essentially de-centralized that it absorbed this hit and began to climb again.

The lows of BTC in this current round were just under $300.00 U.S. per BTC, but as you can see, BTC has climbed back to $400.00 plus. This tells me that there are more than enough other healthy exchanges, trading platforms, virtual wallets, mining pools, merchants and consumers willing to accept, use and trade in BTC, in order to adjust and absorb this problem. It was a big test but it is now over.
Merchants and consumers want stability in a currency. Traders need ranges to trade in, but all want slow, not abrupt adjustments. The next round of adjustments are likely to be more gradual.

To investors: I suggest that you diversify. If you are mining, buying mining contracts, investing in tools for buying, trading, processing BTC or other alternate coins, don’t bank on any one thing, there is plenty of room to spread your arms and explore. Asset allocation theory applies to the alternate currency world. Look into Peercoin and Litecoin, and yes, I am invested in those as well. Don’t hoard your coins, freely convert to fiat (cash) and reinvest. Support smaller mining pools as you are able; spread out your holdings to more than one trading platform, wallet and investment and have courage!

George D. Greenberg
Attorney at Law
Las Vegas, Nevada