Just because MtGox failed doesn't mean unregulated Bitcoin businesses must fail. Iceland is a pretty poor posterboy for your point: their banks failed even more spectacularly than other countries', their cleanup effort was just much more ruthless. Essentially your argument in favour of regulation is that we now sort-of know how to clean up after it fails spectacularly.

Indeed, other exchanges and other Bitcoin businesses don't appear to suffer from the gross incompetence that brought down MtGox.

> Another thing to keep in mind, the people who got the bailouts are a subset of the people who claim unfettered capitalism will cure all ills.

Is that so? In that case they are paying the same kind of lip service to that point as a kleptocratic dictator on his private jet is to socialism.