Has Bitcoin bankruptcy and theft from Mt. Gox changed the perspective on Bitcoin security?

June 12, 2014

There is a dynamic discourse that exists between Lawline faculty and their viewers that goes far beyond the initial viewing of a program.  Lawline faculty and subscribers benefit from a discussion forum where they can discuss substantive legal topics relevant to the program.

Every week, Sigalle Barness shares some of the top answers faculty have supplied to subscriber questions.  These questions are from real Lawline subscribers viewing Lawline on-demand courses.

Bitcoin, Digital Currency and the Law

Question:  "Has the bankruptcy and theft of Bitcoins from Mt. Gox changed your perspective on the security of Bitcoin? Why or why not?"

Answer by Marco Santori: "It's critical to distinguish between the security of the Bitcoin network (today, highly secure) and the security of the services running atop the network, using the Bitcoin protocol (security varies widely). The measure of the security of the Bitcoin network is, by proxy, the hashrate - the total amount of mining power online. As of this moment, that number is incredibly high. It is in fact the most powerful computer network in the history of the world. Also as of this moment, it isn't clear just what happened to the coins at Gox. It could have been a security breach, embezzlement, or negligent practice - it's just difficult to tell. If anything, the Gox insolvency underscores the need for more secure and user-friendly services."

This Question and Answer was taken from the Lawline CLE Program entitled Bitcoin, Digital Currency and the Law presented by Lawline Faculty member Marco Santori. 

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Author Bio

Written by Sigalle Barness

Sigalle Barness is the Vice President of Content and a member of Lawline.com’s Executive Team. Sigalle provides business strategy and leadership to the company and directly manages Lawline’s accreditation, programming and production operations. Sigalle also analyzes market trends and applies insights to develop and execute written and video content including online educational programming, email marketing, social media campaigns, press releases, blog articles and large scale live events. Sigalle graduated summa cum laude from Rutgers University and holds a B.A. in English. She received her J.D. in 2010 from Benjamin N. Cardozo School of Law in New York, NY. Sigalle is admitted to practice in both New York and New Jersey. She is also an active member of the Association for Continuing Legal Education (ACLEA), and is the former Chair of ACLEA’s Programming Special Interest Group (2013 – 2015) and National Provider Special Interest Group (2015 - 2017). Before joining Lawline in March 2012, Sigalle litigated civil claims in areas such as landlord tenant, breach of contract and tax lien and mortgage foreclosures actions. She also handled transactional matters such as drafting residential and commercial leases, demand letters, and client conflict waivers. Sigalle is an avid lover of music, video games, blogging, asking questions and all things food. She is also fluent in Hebrew and enjoys writing fiction, traveling and scuba diving.

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