I know. My point is not so much about the possibility of front running, but about exchanges, and especially Mt. Gox, as the point of failure for bitcoin.
Let's face it, 99% of the excitement about bitcoin lately is not along the lines of "hey, this is a great use of peer-to-peer principles and a fascinating economic experiment with a decentralized currency". No, it is along the lines of "hey, this thing is making tons of money for people! fortunes out of next to nothing!". Take one look at the bitcoin forums.
A failure of a major exchange (and right now, there is exactly one major exchange) would damage the project severely. What's more, the focus on trading at exchanges is making the whole project look a lot less decentralized - yeah, the bitcoins themselves are peer-to-peer, but exchanges are sure not, and if what people really want to do is trade at exchanges, then that's what matters.
I absolutely agree, the bitcoins themselves can't be taken away and neither can person-to-person trade in them.
But you do agree that Mt. Gox sitting there with several million euros frozen in its accounts (for whatever reason) and with its bitcoin accounts inaccessible (even just for a while) will be pretty damaging to the project? And even more damaging to the people who, unlike, say, me, are NOT just playing or experimenting with this concept anymore? The pure person-to-person volume is tiny; if it could easily be scaled, then exchanges would not have arisen.
Let's face it, 99% of the excitement about bitcoin lately is not along the lines of "hey, this is a great use of peer-to-peer principles and a fascinating economic experiment with a decentralized currency". No, it is along the lines of "hey, this thing is making tons of money for people! fortunes out of next to nothing!". Take one look at the bitcoin forums.
A failure of a major exchange (and right now, there is exactly one major exchange) would damage the project severely. What's more, the focus on trading at exchanges is making the whole project look a lot less decentralized - yeah, the bitcoins themselves are peer-to-peer, but exchanges are sure not, and if what people really want to do is trade at exchanges, then that's what matters.