Bitcoin Drops Dramatically After Mt. Gox Stops Trading

I hope you aren't holding all your assets in Bitcoin because you would be hurting about now.

On the Mt. Gox platform the currency plunged to as low as $500 early on Monday, down more than 27 percent from Friday's final price of $692, according to the Mt. Gox website. It last traded at $595.74, off nearly 14 percent from Friday.

"This technical issue is of a much larger intensity than we've seen in the past," said Sebastien Galy, currency strategist at Societe Generale in New York. "The market may be realizing that there are issues which are specific to these forms of currencies."

One of the "issues" is that Bitcoin isn't as liquid as nearly any other kind of currency. I guess this would be akin to a 27% drop caused by the London Metals Exchange suddenly stopped trading in bullion or something "indefinitely." I'm sure other exchanges would pick up the slack but liquidity will leave the market.

I think the key to Bitcoin's future is that it needs to trade on an actual FOREX exchange so that something called Mt. Gox (sounds like an anime location) doesn't crash the currency when they shut down their servers.