Topic: BITSTAMPS BACK! (Read 2573 times)

Preev.com => 281.1 USD

Bitstamp.net => 278 USD

Google.com => 297.96 USD

Great! Bitstamp prove their job professionally and their trustworthy too.
I hope the price will rise!

gotta say great job bitstamp, you guys have proven to be trustworthy, i hope the security is sound now.

good news then

You are right to point that out because unlike financial institutions which have assets to back them up, I don't believe exchangers have that as well. I really hate to see them go but at least they must be given a chance to recover. I'm not sure how it is possible... probably when they start back operation and get things moving again like normal business day, this will allow them to secure funding either from investors or how. Or either way, maybe the loss for them is too small for them and they already have contingency plan in place. We just don't know that. So, it's a good idea not to leave large amount right now which goes the same for any other exchangers.

What you said is academically true. But behind the scene, banks and exchanges work exactly the same way: Customers only play with numbers in their database until they withdraw real money. That's the reason M2 and M3 can be magnitudes higher than monetary base since they are only some numbers in bank's database

Bitcoin is hard assets, you could consider those hacked coins as a long term loan to hackers. Even so, bitstamp still have 80% of customer funds at hand. But in a bank, they never keep more than 40% of the funds at hand and their long term loan to business can not be easily liquidated. When a wave of customer withdraw hit, banks reserve will be drained quickly, and they have to borrow from other banks at the cost of interbank short term interest (LIBOR), but if majority of banks are facing such withdraw pressure, they will turn to FED asking for new base money injection

In bitcoin world there is no lender of last resort, so if everyone withdraw from bitstamp, they will have a bank run, but I think with more than 80% reserve ratio they are much safer than most of the banks

I remember that after 2011 MTGOX hack, they proved that they had 400K coins in a cold storage, and finally they lost 800K coins, so it is very likely that they were operating in a 50% reserve basis for almost 3 years

Banks do not work that way. Banks make loans, which are assets to a bank. If you own a loan, you can sell it, which banks do. Loans plus cash plus capital must exceed deposits. Trouble can appear if a broad class of loans lose value, which is what happened in 2008.

Bitcoin exchanges have no secured loans as assets. They are not banks. They are not lending institutions. They have to have 100% of their deposits or they are insolvent.

That seldom works.  Many financial firms have tried that. Enron was a notable example of that going very wrong.

So, withdraw your funds from Bitstamp for a few months. If they're solvent, it won't hurt them a bit. If not...

Not a big deal, they have so many coins sitting in the cold storage collecting dust. Their reserve ratio is much higher than any banks in the world, which typically have only 20% of customer funds at hand while still serve the customer for decades

So happy we have great exchanges in my country, nor verification time, 5 min entering any website no registration, payment and Bitcoins are send. It's perfect. Main reason is that one of our payment methods is instant and usually non-refundable so they know the funds are there, are immidiatly send to the exchange and with that confirmation the BTC gets transfered.

I did register today on Bitstamp for the. First time, but by the time I would be verified, allowed to buy and have funds deposited...

Ha. Most of us predict that Bitstamps will be back. Since it is back.. Bitcoin price gonna rise again.. .

This is great news!
Other members were saying bitstamp will be back but i wasn't so sure, I'm happy to be proved wrong in this case.
With Pantera behind them this does look like a safe company.

Bitstamp is Silicon Valley, VC backed (Pantera). They were always going to come back and do things right. No chance of insolvency or funny business whatsoever.

I was able to take everything out too.

I have already withdraw all of my bitcoins succesfully

Would definitely withdraw asap if I were a current user...don't make the same mistake.  They're back up, but that still doesn't solve the fundamental problem of their losses or intended plan to make up for the stolen funds.  Seen this happen with coinex and cryptorush with a 're-opening.'  The lost funds are going to come out someone's pocket.

Thats most likely what MtGox wanted to do. And then the price went ballistic.
Bitstamp doesnt didnt lose $5M; they lost a shitload of bitcoins and as long as they dont obtain them, their liability has no upper limit.

I really hope everything eventually works itself out with Bitstamp.
I would hate to see another black eye on the shiny face of BTC to start the new year.

That was an incredible quick fix by Bitstamp. Good trustworthy company.

I highly doubt they have the finances to buy it outright. I think they will have a plan where they slowly pays back the customers over time, or offers them a stake.