No financial market of any kind can survive, much less scale, with such shallow security.
Silly me for thinking of Bitcoin primarily as a protocol and not as a market.
If anything, the death of Gox will help the long term stability of Bitcoin by discouraging people from leaving either fiat or bitcoins on exchanges. The less daytrading, the stronger Bitcoin will become.
JMHO
"protocol", "market", or whatever you choose to call it, it cannot scale if it is not safe for the community. The
true market price will reflect that lack of security. The protocol says the blockchain sees all, well if humans can't decern it what good is the protocol to humans?
Gox departure from the btc economy would have resulted in a true market rally back up to $1000 btc IF the security issue was not an issue. However, rates continued to tumble, not because of gox they were / are dead to the market. It was because we are still not able to use the blockchain to get necessary answers, as such leaving open a gaping hole that would allow any other exchange to walk through it with tons of untraceable btc.
The protocol must prove to be a cooperative as well as a reliable witness when it is called upon to testify otherwise it is still an academic experiment not yet ready for real world applications or the real money that goes with that integration.
Solve the problem, the market goes up to $1000 for real, fail to solve the problem the market simply continue to ONLY surge based on market manipulation and media hype both of which are unsustainable vehicles for btc life.
You will see exchanges step-up in responsible ways in the coming weeks, you will also see the btc protocol reflect a greater appreciation of higher security, and more functionality.
