This week in Bitcoin: MtGox finds some of its missing bitcoins

Bitcoin mining

In this week’s Bitcoin review, we recap MtGox discovering 200,000 BTC and Dorian Satoshi Nakamoto’s further denials that he created Bitcoin.

So, MtGox has more money?

Last week we were wondering what assets MtGox had to freeze in its bankruptcy proceedings, and now it looks like it might be a lot. In the midst of its bankruptcy woes MtGox has found 200,000 BTC, or approximately $117 million based on yesterday’s closing price. The exchange confirmed that it had found the money in an old-format wallet that it thought was empty. That brings the total number of bitcoin missing to 650,000 — 550,000 of which belong to customers.

Meanwhile, in Bitcoin’s other soap-opera plot line, Dorain S. Nakamoto officially released a statement through a lawyer he retained that definitively denies being the cryptocurrency’s creator. Newsweek responded that it had not received the letter so it  wouldn’t actually respond to it. A fundraiser for Dorian Nakamoto, set up on Reddit, has already raised more than 46 BTC, or around $27,000, to help him.

The market this week

The price fell more than $50 this week, ending at a low of $586.59. By 10am PT, the market had fallen another $7 and was trading at $579.93.

Bitcoin price to 3-20-14

For background on why we’re using Coindesk’s Bitcoin Price Index, see note at bottom of the post. 

In other news we covered this week:

Here are some of the best reads from around the web this week:

  • The New York Times takes a look at the people betting big on Bitcoin in Hong Kong.
  • Vice explains how over $100K in Bitcoin was stolen in a ridiculously low-tech heist.
  • The first day of spring also ushers in the need to do taxes. With the deadline looming just a few weeks away, Business Insider published an interview on how people should report income from Bitcoin on their taxes.
  • Is this $500,000 villa in Bali the largest Bitcoin purchase ever? Coindesk reported that Bitpremier, a site for Bitcoin-buyable luxury goods, sold for more than $500,000 — the site’s largest transaction to date.

Bitcoin in 2014

The price is starting to creep down to the low days of when MtGox collapsed in late February. Since the price decrease can’t be directly attributed to bad news for the exchange, it’s unclear why it’s sloping downward.

Bitcoin’s weekly closing price since 2013

A note on our data: We use Coindesk’s Bitcoin Price Index to obtain both a historical and current reflection of the Bitcoin market. The BPI is an average of the two Bitcoin exchanges which meet their criteria, Bitstamp and BTC-e. To see the criteria for inclusion or for price updates by the minute, visit Coindesk. Since the market never closes, the “closing price” as noted in the graphics is based on end of day Greenwich Mean Time (GMT) or British Summer Time (BST). 

Featured image from pond5/arinahabich

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