Topic: mtgox going under is a great thing! (Read 829 times)

Listen, I didn't disrespect you and call you names, I made a simple mistake of confusing the total amount of Bitcoins there can ever be from 21 Million to 21 Billion; it's an honest mistake. It's late here, I just got off a 15 hour shift; chill the fuck out. You don't have to get your panties in a bunch because I don't deal with laziness and stupidity very well, in fact I really don't stand for it at all. 1.6% can be a very massive difference since it's a percentage, not an outright number.

Now off you go Jeff, run along and try playing nice with everyone else instead of being an intolerable little prick.

You are the biggest moron!

21 billion bitcoins? really? And I need to get my math right before posting misinformation!

12,456,475 bitcoins in circulation divided by 700,000 is 5.6%.

Well, la de da, I was 1.6% off. Didn't really feel like getting the calculator out, but since you insist.

Minus 5.6% of the total supply, and if those mtgox people want there coins back, they'll have to rebuy. What percentage of bitcoin will they rebuy? You will then have to add that to 5.6%, for the increased valuation of bitcoin. If in theory, mtgox people wanted the whole 5.6% back, then the value of bitcoin "should" increase 11.2%, not withstanding the effects of lost consumer/investor confidence in bitcoin in general.  

 

My apologies, you are very correct. I've been spending too much damn time in the altcoin section, got billions on my mind when it should be only millions, I'll correct my post.

There will be 21 million bitcoins only in the long term!

It's less than 4%, it's 3.5429% of 21,000,000 in the long term and roughly a 6.2% of currently minted coins.

posting theory as fact is irresponsible.

Over 700,000 imaginary bitcoins just went up in smoke.

Mtgox was artificially increasing the supply of bitcoin, thereby driving the price down, just like a fractional reserve banking system.

This means that the "supply" of bitcoin has just shrunk by 700,000, which is like over 4% of total bitcoins. This means each real bitcoin remaining is now more rare and thus valuable.

Each person who got burnt by mtgox, will now have to start buying more bitcoin if they want to get back in the game, thereby increasing the price of bitcoin further.

An important question: of all the people who got burnt by gox, how many will stay in the bitcoin game and buy more, and how many will quite bitcoin all together?

Okay, yes it stinks that many people got burnt. However, I noticed for many months that bitcoins were selling for $150 plus on mtgox than all other exchanges. This is a major red flag! Why didn't people start ringing the alarm bells? Why on Earth would people buy coins on gox for 150 more than the true market value? Standard answer told to me: because no one can withdraw fiat from gox. Red flag! Something is truly rotten if all these people are forced to pay 150 extra per bitcoin, like holding your customers hostage, yet people still continued trading with kidnappers for months on end like nothing is wrong. Stockholm syndrome. Insane. Or maybe blinded by greed.