Topic: Gox/Bitstamp spread breaches 20%. The bank run on Gox has started! 8/19 - page 2. (Read 5543 times)

Hhahah trustworthy like Gox?  Well if you are looking at doing significant volume, one would traditionally do an off exchange transaction because even Gox's volume is ridiculously low for a currency market.  Oh and one other thing, if you want to sell, when can you expect to see your funds?  Hmm ya i'll just trust a shady Bitcoin exchange that tells me it will take 3 months to withdraw my cash.  

Answer the question: why not buy BTC at bitstamp?

Did anybody here have his mtgox withdrawal limits changed to 0 btc and $0 per 24hours!!!?!?! My account is fully verified it used to be $1,000 or 100 btc just a few days ago.

I have thousands worth of btc and dollars in my account and was about to withdraw btc just now when now my limits are showing 0, as in i can withdraw NOTHING!! What is going on here?

    BTC : You can still withdraw up to 100.00000000 BTC provided you have enough on your account (your limit is 100.00000000 BTC per 24 hours )
    USD : You can still withdraw up to $10,000.00000 provided you have enough on your account (your limit is $10,000.00000 per 24 hours and $50,000.00000 per 30 days)

Bullish signs, so investors buying BTC. Ok. Why then not buy BTC at bitstamp for example, where price is lower? The difference between Gox and others is still rising.

Oh great idea! I wonder why nobody else had this idea
/sarcasm off 

It doesn't matter if you sell your Bitcoins on MtGox for 100, 1000 or one gazillion USD per BTC - as long as there's no way to withdraw your funds.

Why then not buy BTC at bitstamp for example, where price is lower? The difference between Gox and others is still rising.

Why Mt.Gox is a bottleneck, just like every other exchange

Because Euro-SEPA transfers are actually credit tranfers and can be re-called up to 10 business days, Mt.Gox is forced to delay EUR deposits for 10 business days as well. This is not Mt.Gox's fault, but the way SEPA works. SEPA recalls have cost Mt.Gox a lot of money from prematurely crediting SEPA transfers.

According to Mt.Gox their only European bank in Poland has imposed daily withdrawal limits. Your EUR withdrawals enter a queue and can take 3-8 weeks to process. I believe this. European banks are required by law to prevent money laundering and financing of terrorism. The amount of cash Mt.Gox is withdrawing is suspicious. For example, corporate businesses such as T-Mobile would never need to withdraw so much cash back to their individual customers. Mass withdrawals are a strange and suspicious phenomenon in the banking world. The Mt.Gox outgoing cashflow is so suspicious that we should be lucky that it is even possible to get EUR out of Mt.Gox.

Why doesn't Mt.Gox simply open up multiple European bank accounts? Because most banks do not accept "Bitcoin businesses" at all. Banks have the legal right to deny business they do not understand.

"Oh, but surely, Bitstamp is the solution!" BULLSHIT. Once Bitstamp reaches high levels of outgoing withdrawals then Bitstamp's bank accounts will also be shut down, just like Mt.Gox's. Bitstamp operates within the European Union and must therefore comply with the same laws to prevent money laundering and financing of terrorism. Soon Bitstamp will have to deal with daily withdrawal limits from their bank. Bitstamp will face the exact same problems as Mt.Gox. There are no magical pills to solve real world problems.

Besides, even though BitServiceX maintains a Trusted account at Mt.Gox, we can only withdraw 10K EUR per day and 100K EUR per month, severely limiting cash flow back into BitServiceX.

Problem: exchanges with European bank accounts can never service mass withdrawals. At some point all bank accounts handling Bitcoin withdrawals will either be shutdown or severely restricted to prevent money laundering and financing of terrorism. The same thing happened to Germany's Bitcoin-24.
Solution: currently, there is no solution but to spread your assets over as many different exchanges as possible.

I think, however, the big jump in price is due to very bullish signs for Bitcoin. Recent attention it got from Washington made some hedge fund managers pay more close attention, some even recommending their customers including Bitcoin in their portofolio and thing is MtGox is still the go to exchange for big players, not the Slovenia Eastern Europe based Bitstamp.

There is a certain "drag effect" that makes it so that the bank run on Gox brings also Stamp price up.
On as to how much of that drag is due to end of holidays + new bubble starting rather than due to suckers that think "Gox price is up, buy buy buy on Stamp that's cheaper" - well that topic is likely going to be a hot debate in the speculation forum.

Bitstamp is at 102.6$ now so going up. Up 3.3% for the day.

We have no evidence at all that this is the case. There is ZERO evidence that some guy who looked nervous in a video or mtgox staff or friends of mtgox staff is getting their withdraws and their money out while everyone else is left hanging.

That this seems pretty obvious to everyone who follows the markets closely is another story, and we can all do our own thinking. But there is, as said, zero evidence, it's just a theory. We can all calculate how likely we think it is that this theory is true, of course. We are still free to do some things in the "free" western world (just don't say anything critical of the government or say bad things like "what is false-flag terror, what was operation northwoods, etc").

They should stop trading and try to work out the queue.