Doesn't this story of MtGox completely invalidate the idea of Bitcoin? It was made to appear safe due to an algorithm, but obviously it can disappear without a trace and then what? There was never any sovereign authority behind that currency. Thus no international muscle to go track down the bad guys or figure out what happened. If anything, the international banking community will simply say "told you so..."
Exactly the opposite. Mtgox's failure stresses the need for the original purpose of Bitcoin; removing the need for counter-party trust. Storing your assets in any third party or hot wallet goes against the intention of the Bitcoin protocol and is foolhardy. Bitcoin is just as susceptible to being stolen by con artists, governments, and corporations as greenbacks are. Some users learned the hard way that Bitcoin is as safe or dangerous as you choose to make it.
Worse. Let's say that you accept Bitcoin payment years from now and it turns out that that money was part of the MtGox heist. Congratulations, you've now received stolen property, which in many jurisdictions means that it may be taken away from you at any moment, all quite legally.