The top 5 reason MtGox is failing:
1) They are located in Japan. The ruling party in Japan is the Liberal Democratic Party, or as we would
call them in the USA, Socialists. Socialists can’t bear to see individual success. The more successful you
are, the bigger your target gets.
2) MtGox is run by an “unemployed software hacker named Jed”. I’m not sure if there is another
company on the planet run by an unemployed software hacker named Jed, but there could be.
3) OK, we’ll give them this one. The FBI seized millions from their US accounts, claiming illegal
transactions. You can’t fight the Feds, especially from Japan.
4) DDOS Attacks allowed double withdrawals from accounts. To avoid bad press, early on, MtGox
would allow customers, who complained enough, additional Bitcoin to replace slow transactions hoping
they could get the first coins back. This led to MtGox locking up all accounts for a few days. That only
created more selling frenzy at Gox.
5) The media is piling on. The media would love nothing more than for Jed to jump from an 80 story
building so they could take pictures. Since Jed won’t do that, they will keep on with the bad press. The
bad press has reduced a MtGox premium on Bitcoin to a deficit of more than $200. Nobody wants to
own Bitcoin at MtGox, and that faith may never be restored.