Mt. Gox is essentially a tech version of natural selection, Says Fred Ehrsam of Coinbase

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Mt. Gox is essentially a tech version of natural selection, Says Fred Ehrsam of Coinbase
Mt. Gox is essentially a tech version of natural selection, Says Fred Ehrsam of Coinbase

Mt. Gox is essentially a tech version of natural selection, Says Fred Ehrsam of Coinbase

Mt. Gox collapsed and filed for bankruptcy protection with an outstanding debt of ¥6.5bn ($63.6m); however, according to Fred Ehrsam, the co-founder of the widely used Bitcoin wallet Coinbase, what happened to Mt. Gox is essentially a tech version of natural selection. Putting his point across at a one-on-one panel at SXSW, he said that stronger firms will come up.

Basing his argument on the much famed Charles Darwin’s theory of natural selection, Fred Ehrsam said that the companies that don’t know what they’re doing will fall by the wayside and the stronger firms will survive. ForexMinute had earlier reported that Mt. Gox admitted that 750,000 of its customers’ Bitcoins and 100,000 of the company’s own have been lost.

Mt. Gox collapse generated a lot of concern among stakeholders and expert opinions came pouring in. A lot of debate is taking place to understand the issue that Mt. Gox faced and finally collapsed. In fact, problems at Mt. Gox, the largest Bitcoin exchange, have left early adopters wondering about the fate of the popular crypto-currency as well.

Many Bitcoin backers are facing trouble against the governmental interference which thinks that if things go like customers would be affected. The last month when Mt. Gox halted trading, stating that it lost about 850,000 Bitcoins to fraud and filed for bankruptcy, a bright shining star disappeared from Bitcoin economy.

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Government Regulation May Help Bitcoin Go Mainstream

In his point Fred Ehrsam who has been a strong advocate of digital currency said that such instances do not call for overreaction. His company which recently entered into partnership with Big Fish Game, has been in the forefront of Bitcoin economy. He thinks that Bitcoin will live on even if some more Mt. Gox type businesses collapse.

According to Fred Ehrsam some reasonable amount of regulation from outside financial firms would be needed to truly push Bitcoin into the mainstream. Also as troubles for Bitcoins are far from over, government in the US since the last year has been seeking for a solution; for instance, earlier the last month US federal prosecutor subpoenaed the Bitcoin exchanges.

Then the US Federal prosecutor sought information on disruptive cyber attacks on several Bitcoin exchanges that included now disbanded Mt. Gox. Despite favorable opinion from the new Fed chief no way out seems to be coming in the US regarding Bitcoin.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com