According to McMillan, the world’s largest bitcoin exchange appeared to be a towering example of renegade entrepreneurism. However, insiders have claimed that Mt. Gox was a messy combination of poor management, neglect, and raw inexperience. Herein lies the makings of a $460 million hack of the bitcoin.
1. Would you consider a bitcoin to be a cash equivalent? Why or why not?
2. What was the peak price of a bitcoin?
3. What red flags made Mt. Gox a disaster waiting to happen?
4. Was this a one-time hack of the bitcoin exchange? Explain.
McMillan, R. (2014). The Inside Story of Mt. Gox, Bitcoin’s $460 Million Disaster. WIRED, March 3 (Retrievable online at http://www.wired.com/wiredenterprise/2014/03/bitcoin-exchange/)