How is it possible that they don't have enough money to cover customer withdrawal? hard to fathom..
Where did you hear that?
Yep. Seems like not realy truth..
Topic: Bitcoin Bank Run (Read 3165 times)
Where did you hear that?
Yep. Seems like not realy truth..
Also I think that was one of the reasons that their price was $100 above all other exchanges, they were selling at a premium (somehow artificially manipulated the exchange to sell their own bitcoins at a premium) to slowly compensate the loses.
At least that's my little conspiracy theory
At least that's my little conspiracy theory
Aww, don't leave us hanging! Explain how someone would manipulate prices like that!
I used to play online poker professionally. This is eerily similar to what happened with Full Tilt Poker. Its been more than 2 1/2 years since they shut down and players have still not received their funds back.
FT funds were seized by the DOJ along with PS and UB because the money processors from each site were colluding to launder money so they could except US deposits.
The only thing that bothers me is why they think that mtgox is fractional reserve. Is it?
Now It's not hard to imagine that after they had over 5M seized by US they might have sold some bitcoins to keep their cash flow, and when later the price increased tenfold they couldn't re-buy them anymore.....
Also I think that was one of the reasons that their price was $100 above all other exchanges, they were selling at a premium (somehow artificially manipulated the exchange to sell their own bitcoins at a premium) to slowly compensate the loses.
At least that's my little conspiracy theory
Now It's not hard to imagine that after they had over 5M seized by US they might have sold some bitcoins to keep their cash flow, and when later the price increased tenfold they couldn't re-buy them anymore.....
Also I think that was one of the reasons that their price was $100 above all other exchanges, they were selling at a premium (somehow artificially manipulated the exchange to sell their own bitcoins at a premium) to slowly compensate the loses.
At least that's my little conspiracy theory
It is just an exchange, why would it need to operate on fractional reserves? if they are operating in such way for whatever reason, it is a crime. It is simple stealing.
How is it possible that they don't have enough money to cover customer withdrawal? hard to fathom..
Where did you hear that?
How is it possible that they don't have enough money to cover customer withdrawal? hard to fathom..
Comments are disabled on the original article 
The whole article is based on this assumption:
I just love it when "experts" pull "facts" out of their arse.
The whole article is based on this assumption:
Like all banks, Mt. Gox is operating under a system of fractional reserves, loaning out or otherwise making use of bitcoin deposits entrusted to it.
I just love it when "experts" pull "facts" out of their arse.
Agreed. I would be unsurprised to learn that MtGox is involved in fractional reserve asset holding. But that bold statement by the quote in the OP looks to me to be an unsubstantiated allegation. Where's the proof?
Comments are disabled on the original article
The whole article is based on this assumption:
Mt. Gox is NOT a bank. There is no evidence that it is engaging in lending. I would even go so far as to speculate that to do so would be highly illegal.
I just love it when "experts" pull "facts" out of their arse.
The whole article is based on this assumption:
Like all banks, Mt. Gox is operating under a system of fractional reserves, loaning out or otherwise making use of bitcoin deposits entrusted to it.
Mt. Gox is NOT a bank. There is no evidence that it is engaging in lending. I would even go so far as to speculate that to do so would be highly illegal.
I just love it when "experts" pull "facts" out of their arse.
Ok then...wait a till the end of the month.....if it happens then i will classify it as a 'financial miracle' 
Well, they got hacked and had money stolen in 2011. They reimbursed customers from their own funds/profits.
Bitomat.pl exchange did something massively stupid, and lost something like 25,000 of their customer's coins (all of them, basically). MtGox bought out Bitomat, along with all its customers, and reimbursed customers from their own funds/profits.
Last Spring and Summer, US government took $5mil USD of customer's money when they froze Gox's accounts. They reinbursed customers from their own funds/profits.
There's definitely a trend here, and if they reinburse everyone's funds this time, it wouldn't really be a miracle.
(Talking to someone, they suggested that perhaps MtGox was stupid to reimburse funds the last time, and attempted to file a class action on behalf of the customers who's money US government seized. But then, I guess that would have been too much hassle)
I used to play online poker professionally. This is eerily similar to what happened with Full Tilt Poker. Its been more than 2 1/2 years since they shut down and players have still not received their funds back.
I can only advice you to give up waiting.....
lol you would think but they actually just announced last week that funds would be reimbursed by the end of this month
Ok then...wait a till the end of the month.....if it happens then i will classify it as a 'financial miracle'
GOXXX is like that boyfriend that beats you that you just keep going back to. I can change baby I can change! Nobody loves you like I do!
IF I CANT HAVE YOU NO ONE CAN!
I used to play online poker professionally. This is eerily similar to what happened with Full Tilt Poker. Its been more than 2 1/2 years since they shut down and players have still not received their funds back.
I can only advice you to give up waiting.....
lol you would think but they actually just announced last week that funds would be reimbursed by the end of this month
Ok then...wait a till the end of the month.....if it happens then i will classify it as a 'financial miracle'
I used to play online poker professionally. This is eerily similar to what happened with Full Tilt Poker. Its been more than 2 1/2 years since they shut down and players have still not received their funds back.
I can only advice you to give up waiting.....
lol you would think but they actually just announced last week that funds would be reimbursed by the end of this month
When someone is less trustworthy than a bank, I don't think it's out of bounds to assume the worst, especially when said individual has had this service shut down what, 10 or 20 times in a year or two?
You'd think about 10 or 20 times people would assume this is just their normal operating procedure
When I see people complain about it, I want to shake them upside down in real life, and take all the money that falls out of their pockets away and send it to Mt. GoXXX. Just to save them the effort.
When someone is less trustworthy than a bank, I don't think it's out of bounds to assume the worst, especially when said individual has had this service shut down what, 10 or 20 times in a year or two?
You'd think about 10 or 20 times people would assume this is just their normal operating procedure
Quote
Mt. Gox is operating under a system of fractional reserves
Where did that come from? They don't do loans, and have no reason to do fractional reserve. Is there a source for this claim?
The whole sentence, "Like all banks, Mt. Gox is operating under a system of fractional reserves, loaning out or otherwise making use of bitcoin deposits entrusted to it."
When in doubt, ask them
Maybe they "fully tilted" the table on its side, and let all of your chips slide into their pockets
I used to play online poker professionally. This is eerily similar to what happened with Full Tilt Poker. Its been more than 2 1/2 years since they shut down and players have still not received their funds back.
I can only advice you to give up waiting.....
My brain mustlve edited it out, because 1/3rd of the article is about bank runs and how MtGox is experiencing on (at zero speed, due to no withdrawals). Thanks for pointing that out.
My personal opinion is just that they're stealing it.
Look at it this way - a bank will say "We can't afford for everyone to cash out, so we are closing our doors" or whatever.
This guy is giving out less information than a bank.
When someone is less trustworthy than a bank, I don't think it's out of bounds to assume the worst, especially when said individual has had this service shut down what, 10 or 20 times in a year or two?
Fortunately BitCoins don't count as money legally, or the dude would be in jail. He better hope he's not fucking around with the mob's money.
The next multi billionaire is the guy who founds the first Bitcoin bank, providing funding to startups, loans, and cold storage to Bitcoin holders.
I realize thats a form of centralization, but one could say the same about any company providing a service latched-in to the Bitcoin protocol.
I think it would be safe. And it would meet an immense need.
-B-
I realize thats a form of centralization, but one could say the same about any company providing a service latched-in to the Bitcoin protocol.
I think it would be safe. And it would meet an immense need.
-B-
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