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Mt.Gox Is Dead, Long Live Bitcoin!

Analysis of the Rise and Fall of a Leading Virtual Currency Exchange Platform
Conference paper
Part of the Lecture Notes in Information Systems and Organisation book series (LNISO, volume 11)

Abstract

In the last decade the intensity and frequency of business and social interactions mediated by digital channels have dramatically increased. Participating in virtual communities, communicating via internet, buying product and services through the web is part of our daily behavior. It is not a surprise the tremendous expansion that virtual currencies are experiencing. Virtual currency exchange platforms (VCEP), specialized in trading virtual currency are becoming increasingly popular. The combination of these two concepts calls for a deeper understanding of their value and models both from an organizational and an information system perspective. We investigate Mt.Gox, one of the most popular VCEP, trading till 70 % of Bitcoin transactions in 2013, and suddenly collapsing as consequence of managerial choices and cyber-attacks. We explore this case study in order to understand the value and the risks associated to the system and the consequences of the breakdown of one of the most important player.

Keywords

Virtual currency E-currency Bitcoin Mt.gox Exchange platform Exchange market Hacker Cyber attack 

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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  1. 1.OrgLab, Department of Economics and Law, UniClamCassinoItaly

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