Jeffrey Tucker
A New Currency for the Digital Age
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Let’s take gold as an example. Approximately 187,000 metric tonnes of gold have been mined in history—this is the stock of gold. It’s virtually impossible to destroy gold, so most of this stock is still around. Bitcoin vs. Gold On February 11, 2012, Paxum, an online payment service and popular means for exchanging bitcoin announces it will cease all dealings related to the currency due to concerns of its legality. Two days later, regulatory issues surrounding money transmission compel the popular bitcoin exchange and services firm TradeHill to terminate its business and immediately begin selling its bitcoin assets to refund its customers and creditors. The following day, Patrick Strateman, known on BitcoinTalk as phantomcircuit, benevolently discloses a devastating bug in how BTC-E, another online exchange, secures its clients' accounts and funds.