GARTMAN: Everyone Should Avoid Bitcoin -- Mt. Gox's Failure Is A 'Pox On The Entire Enterprise'

MtGox, once Bitcoin’s largest trading site, has shut down.

The company said the move came “in light of recent news reports and the potential repercussions on MtGox’s operations and the market.”

Though some argue that it is insolvent.

Dennis Gartman, editor and publisher of The Gartman Letter writes that this reminds us that “there is never just one cockroach.”

In some pretty strong rhetoric, he says Mt Gox’s failure is “a pox upon the entire enterprise.” Gartman also writes that those engaging in Bitcoin speculation will draw the attention of the IRS and it would be wise for people to avoid Bitcoin at all costs. From Gartman:

“We have never been fans of Bitcoin, believing it to be nothing more than a scam of the first order and a breeding ground for drug dealing and tax evasion. We have pleaded with our clients around the world not to become involved with Bitcoin in any form or fashion, but even we are stunned by the announcement that the Bitcoin exchange, Mt. Gox, has gone bankrupt… or soon will… in the past 20 four hours, proving once again our old adage that “There is never just one cockroach.”

“Mt.Gox had delayed paying out trading profits and/or holdings of cash or of Bitcoins themselves in recent weeks, blaming problems on technical circumstances… upon “server” problems… or upon other technical irregularities. Now it is being reported that Mt. Gox has suffered the theft of several hundred thousand of its deposited Bitcoins and that the theft took place a year or more ago and is only now coming to light.

“Others are already trying to fill the void left by Mt.Gox’ demise, but we shall again urge caution and in most instances shall counsel utter and complete avoidance of all things Bitcoin related. We fear that even if these other “exchanges” can take the place of Mt.Gox, the damage done by this company’s failure shall be a pox upon the entire enterprise. Avoid Bitcoin if you can, for even if these other exchanges succeed, we can only suspect that participation in Bitcoin speculation shall eventually call the IRS attention upon those involved even in a modest way, and no one needs that attention. A word to the hopefully wise!”

Bitcoin believers however are arguing that for Bitcoin to survive, MtGox has to go away.

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