02.28.14

The digital money industry (can we call it that?) is in the midst of a global public relations crisis that calls out for a major public education campaign.  The news out of Japan, where one of the original Bitcoin exchanges, known as Mt. Gox, has admitted hackers have stolen approximately $480 million worth of Bitcoins and filed for bankruptcy, has fueled misinformation and skepticism of the nascent industry. Much of the social media discussion is about the demise of Bitcoin, and for good reason: in many respects, the digital world that created digital money is now cannibalizing some of their own.

It may be too early to bail on Bitcoin, however – after all, no one bailed on the dollar because Lehman Bros. failed. So how will the digital money industry respond as Congress takes notice, and international financial regulators call for oversight?  What they do next to educate the public will be important. They will no doubt use digital communications tactics to get across their message, but here the traditional media is also taking notice.  Yoshifumi Takemoto and Sophie Knight at Reuters have a solid round up. Read it here.  Even the Daily Show is getting in on the action.