Hedge funds gamble on Mt Gox bitcoin payout

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Quote from: Shiroslullaby on February 19, 2017, 10:08:30 PM

I would be interested in what they were offering.
Its a gamble with an upside since you may only get back a portion of what is promised but you have the upside of grabbing some cheap bitcoin,
which is a commodity that may increase in value over time.

Read all of the OP. It is clear that you did not read the whole post and you are blindly posting anything.

The hedge funds are offering 15% of the value of the claims. That is very low. Clearly the hedge funds know that they might do better in speeding up the processing of the claims. They are not stupid. They always go for the sure thing. So the 15% offer is a scam.

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Quote from: alyssa85 on February 21, 2017, 05:57:39 PM

Quote from: Bitcoinguru99 on February 21, 2017, 05:03:21 PM

Out of my 20k$ gox claim the hedgefund offers 3000$ in cash immediately. Would go for it? Or waiting another 2 or more years for finally not getting anything at all?

I guess it depends on how badly you need the money. I think that if you wait the 2 years you will definitely get SOMETHING. The question is, what will the price be. If you are convinced that the price is going to be higher, it makes sense to wait it out. But if you think it might crash, then take the money and run. It is a gamble and only you know whether you want to risk it.

If we believe price is going to get higher, a safer and quicker move would be, to discount your portfolio to the hedgefund and then hold it all the much you desire, whatever happens, a chunk of your bad debt at Mt. Gox is cooling its heels in your wallet and that is inline with the wise saying that - a bird at hand is worth two in the bush!

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Quote from: Bitcoinguru99 on February 21, 2017, 05:03:21 PM

Out of my 20k$ gox claim the hedgefund offers 3000$ in cash immediately. Would go for it? Or waiting another 2 or more years for finally not getting anything at all?

if a hedge fund sees value in your claim, why not you? it's a potential long shot but as long as the payout remains in bitcoin you might get a load more than 3 grand.

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Quote from: Hazir on February 15, 2017, 08:59:07 PM

Fortunately I haven't lost any BTC during MtGox crash. But if I had I would be happy to receive any form of compensation.
So they have over 203,900,000 million dollar worth of BTC right now, why the heck they don't want to give it all to people?
I am not that shocked that hedge funds are trying to monetize it even further that is their way of doing things.

Most legal processes are slow and move at a snail pace, so this should not be very surprising, also some process needs to be determined about how to distribute the coins if the coins are ever given back to its rightful owners.

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Quote from: Bitcoinguru99 on February 21, 2017, 05:03:21 PM

Out of my 20k$ gox claim the hedgefund offers 3000$ in cash immediately. Would go for it? Or waiting another 2 or more years for finally not getting anything at all?

I guess it depends on how badly you need the money. I think that if you wait the 2 years you will definitely get SOMETHING. The question is, what will the price be. If you are convinced that the price is going to be higher, it makes sense to wait it out. But if you think it might crash, then take the money and run. It is a gamble and only you know whether you want to risk it.

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Out of my 20k$ gox claim the hedgefund offers 3000$ in cash immediately. Would go for it? Or waiting another 2 or more years for finally not getting anything at all?

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Quote from: panju1 on February 19, 2017, 07:29:12 PM

Quote from: Victorycoin on February 19, 2017, 04:38:58 PM

Quote from: hollandvan on February 17, 2017, 12:14:49 AM

Quote from: aardvark15 on February 15, 2017, 07:02:17 PM

I'm surprised that they are able to recover anything, but this could be a positive for Bitcoin. It could be a sign to potential investors that even in scams or hacks, some coins can be recovered.

If this is recovered, people will massive dump bitcoin, when mtgox dead, the price was 400 usd, they have chance to dump at 1000 usd, and they will dump it.

Guess that entirely your opinion but dumping of Bitcoin is no longer all said and done, because as more and more people are embracing Bitcoin, its decentralized nature really comes to the fore. I tell you what will happen, some people would simply sell their coins and wait to buy again at lower prices and that is called profit taking and not dumping. Good coaches don't replace a winning team!

I agree that there might not be dumping. The people who will be reimbursed are the early adopters. Most people here would not even have known about bitcoin when Mt Gox collapsed. So there is a good chance that those people might hold on to their bitcoins.

Like you said, most of those people are early adopters and we can actually give it to them that they knew better. If they had faith in Bitcoin back then when the vision was yet hazy, there is not one reason they would look the other way now that Bitcoin is fast turning mainstream across the globe and a fabulous value it now have. I don't know of any asset that was able to record up to a 100% increase in value in 2016, which was a feat Bitcoin accomplished and rearing to accomplish even more in this year, 2017 and in the years ahead. Take a look, Bitcoin is good news: http://www.newsbtc.com/2017/01/01/2016-good-year-bitcoin/

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I would be interested in what they were offering.
Its a gamble with an upside since you may only get back a portion of what is promised but you have the upside of grabbing some cheap bitcoin,
which is a commodity that may increase in value over time.

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Quote from: hollandvan on February 17, 2017, 12:14:49 AM

Quote from: aardvark15 on February 15, 2017, 07:02:17 PM

I'm surprised that they are able to recover anything, but this could be a positive for Bitcoin. It could be a sign to potential investors that even in scams or hacks, some coins can be recovered.

If this is recovered, people will massive dump bitcoin, when mtgox dead, the price was 400 usd, they have chance to dump at 1000 usd, and they will dump it.

The coins have been recovered and the status of the claims has been verified, but we are a long way before people actually get compensated. It might take another year to finalise. That is kinda why the hedge funds are making their offer to claimants - they pay cash to take ownership of the claim. The claimant gets money now, the hedge fund is gambling that they will make money in the future when the coins get paid and are worth a lot more.

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Quote from: Victorycoin on February 19, 2017, 04:38:58 PM

Quote from: hollandvan on February 17, 2017, 12:14:49 AM

Quote from: aardvark15 on February 15, 2017, 07:02:17 PM

I'm surprised that they are able to recover anything, but this could be a positive for Bitcoin. It could be a sign to potential investors that even in scams or hacks, some coins can be recovered.

If this is recovered, people will massive dump bitcoin, when mtgox dead, the price was 400 usd, they have chance to dump at 1000 usd, and they will dump it.

Guess that entirely your opinion but dumping of Bitcoin is no longer all said and done, because as more and more people are embracing Bitcoin, its decentralized nature really comes to the fore. I tell you what will happen, some people would simply sell their coins and wait to buy again at lower prices and that is called profit taking and not dumping. Good coaches don't replace a winning team!

I agree that there might not be dumping. The people who will be reimbursed are the early adopters. Most people here would not even have known about bitcoin when Mt Gox collapsed. So there is a good chance that those people might hold on to their bitcoins.

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Quote from: hollandvan on February 17, 2017, 12:14:49 AM

Quote from: aardvark15 on February 15, 2017, 07:02:17 PM

I'm surprised that they are able to recover anything, but this could be a positive for Bitcoin. It could be a sign to potential investors that even in scams or hacks, some coins can be recovered.

If this is recovered, people will massive dump bitcoin, when mtgox dead, the price was 400 usd, they have chance to dump at 1000 usd, and they will dump it.

Guess that entirely your opinion but dumping of Bitcoin is no longer all said and done, because as more and more people are embracing Bitcoin, its decentralized nature really comes to the fore. I tell you what will happen, some people would simply sell their coins and wait to buy again at lower prices and that is called profit taking and not dumping. Good coaches don't replace a winning team!

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Quote from: aardvark15 on February 15, 2017, 07:02:17 PM

I'm surprised that they are able to recover anything, but this could be a positive for Bitcoin. It could be a sign to potential investors that even in scams or hacks, some coins can be recovered.

If this is recovered, people will massive dump bitcoin, when mtgox dead, the price was 400 usd, they have chance to dump at 1000 usd, and they will dump it.

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Quote from: LFC_Bitcoin on February 16, 2017, 11:51:49 AM

$203,900,000 worth of bitcoin's? If they hand out even 1/10 of that it'll crash the price?

It is 203,900 bitcoins. Not dollars.

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Quote from: pitham1 on February 15, 2017, 08:39:02 PM

Quote from: aardvark15 on February 15, 2017, 07:02:17 PM

I'm surprised that they are able to recover anything, but this could be a positive for Bitcoin. It could be a sign to potential investors that even in scams or hacks, some coins can be recovered.

People usually focus on the amount of coins lost, not the amount of coins recovered. In this case, if the hedge funds are able to buy out the claims at a deep discount, Mt Gox users will get screwed twice over.

Well, everything is a risk, it depends entirely on how long it takes for the Mt Gox claims to come through.

Suppose a claimant sells his claim to a hedge fund now, when the price is $1030, and then the winklevoss ETF is denied and the price falls back to $500. The claimant has done well.

On the other hand, suppose the claimant sells now, but the ETF is approved and the price goes to $2000. The hedge funds win.

So it's really a gamble on what you think bitcoin will do in the near future.

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Quote from: LFC_Bitcoin on February 16, 2017, 11:51:49 AM

$203,900,000 worth of bitcoin's? If they hand out even 1/10 of that it'll crash the price?

They might reimburse in bitcoins. And the people who get reimbursed might just decide to hold.
There are estimates that $300Mn might flow into Bitcoin if the ETF gets approved. That could easily counter any Mt Gox dump.

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Quote from: The Sceptical Chymist on February 15, 2017, 08:14:43 PM

Pfft...this isn't surprising that someone is trying to monetize the payouts. That's what hedge funds do, they gamble. Good luck to the claimants, I say. It would be good if they got anything back. Fuck Gox.

I won't call that gambling as it's more to me an educated guess, seeing all the creditor claims made to date have been reviewed and the Japanese government is quite keen at restoring some sanity and confidence to the industry. Moreover, there is already 202,185 XBT, about $91 million calculated at $451 cooling down at Kraken.

At the prevailing Bitcoin price of over $1000 compared to $451, the risk by the hedge funds is well worth the taking and the Bitcoin community would be better off for it even as they won't recoup all their claims.

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Quote from: LFC_Bitcoin on February 16, 2017, 11:51:49 AM

$203,900,000 worth of bitcoin's? If they hand out even 1/10 of that it'll crash the price?

I'd be very happy to put up with a crash if it meant some people were reimbursed.

And it's quite possible it'll attract some major OTC attention. Where else on planet Earth could you guarantee that quantity of coins and a bunch of sellers who are probably royally sick of it all? This hedge fund might be the start of much institutional interest.

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$203,900,000 worth of bitcoin's? If they hand out even 1/10 of that it'll crash the price?

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if true MT gox bitcoin can pay out
many problem, bitcoin price can down and crash, is remember after MT GOX accident in 2013 bitcoin crash, and bitcoin price extreme down price

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Quote from: Hazir on February 15, 2017, 08:59:07 PM

So they have over 203,900,000 million dollar worth of BTC right now, why the heck they don't want to give it all to people?

The longer it's drawn out, the more they can erode that figure with their own fees. Bankruptcy is a long and agonising process at the best of times. Somewhere as messy and opaque as Gox would be doubly so.

And what the hell happened to all the fiat? I've never seen a mention of that anywhere.

Topic: Hedge funds gamble on Mt Gox bitcoin payout (Read 1750 times)