> I have some predictions: Gox will not be bailed out. MtGox will not be bailed out because of the relative unimportance of bitcoin to the larger economy, not of any high-minded free market idealism. Since the MtGox explosion, bitcoin prices (and therefore real purchasing power) are down by about 30%. If bitcoin were a national currency, the government would be doing everything in its power to prevent such a decline,…
The problem is that there is a central authority that gets to decide "relative importance". Even granting that, isn't it perverse that this authority, having presumably decided what is and isn't of "relative importance", lacks the foresight to prevent the agents of these relatively important institutions to bring entire economies to the edge of the precipice?