MtGox - if insolvent, better to hold cash or BTC?

astr0train

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Quote from: hyphymikey on February 10, 2014, 03:48:05 AM

If they are insolvent then say goodbye to both fiat and btc. Holding one over the other would be pointless

If they close down or run, then I would rather fiat. If they withdraw the BTC it is gone forever. If they withdraw fiat, it can be traced, confiscated, and maybe eventually returned to the customers. I would just make sure to screen cap or have some sort of proof of the amount of fiat you have on Gox.

This works for any case on any exchange, when there is fear you might loose holdings, always go back to fiat, where laws are applicable.

good points.

hilariousandco

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Quote from: hyphymikey on February 10, 2014, 03:48:05 AM

If they are insolvent then say goodbye to both fiat and btc. Holding one over the other would be pointless

If they close down or run, then I would rather fiat. If they withdraw the BTC it is gone forever. If they withdraw fiat, it can be traced, confiscated, and maybe eventually returned to the customers. I would just make sure to screen cap or have some sort of proof of the amount of fiat you have on Gox.

This works for any case on any exchange, when there is fear you might loose holdings, always go back to fiat, where laws are applicable.

Yeah, money seems stuck in there either way at the moment. It would probably be easier to get cash back if the company went down, but it'll probably be easier to get BTC out once they start letting withdrawals happen again, but who knows if they ever will. Once they do everybody is going to want to get their money out ASAP and I don't know how they'll manage this.

hyphymikey

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If they are insolvent then say goodbye to both fiat and btc. Holding one over the other would be pointless

If they close down or run, then I would rather fiat. If they withdraw the BTC it is gone forever. If they withdraw fiat, it can be traced, confiscated, and maybe eventually returned to the customers. I would just make sure to screen cap or have some sort of proof of the amount of fiat you have on Gox.

This works for any case on any exchange, when there is fear you might loose holdings, always go back to fiat, where laws are applicable.

astr0train

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This thread isn't about chances of withdrawing what.

It is about the company becoming insolvent, with no login page just a notice "administrators/liquidators appointed".

At that point - better to be a creditor with BTC or fiat?

keithers

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Quote from: infoman on February 09, 2014, 11:11:37 PM

Quote from: ?? on ??

Quote from: Sonny on February 09, 2014, 10:34:34 PM

Quote from: keithers on February 09, 2014, 09:13:23 PM

I would say BTC, because even if they dont have any liquid cash, you should in theory still be able to withdraw your BTC, since that doesnt require any money or banking partner for withdraw

Only if mtgox has enough btc to cover everyone's withdrawal, especially many people may cancel their USD withdrawal, buy bitcoin and withdraw their all their bitcoin from mtgox.

One had better do it sooner rather than later in that case.

yeah, but btc withdrawal is suspended, and when it was not suspended, it was not going through either.

Yes, but i strongly feel that your chances of withdrawing btc are better than withdrawing USD

Cubic Earth

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BTC is my vote.

Seems judging from the price, the overall sentiment is split.

BitCoinNutJob

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fiat

disclaimer201

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Quote from: Sonny on February 09, 2014, 10:46:14 PM

Quote from: Barek on February 09, 2014, 10:40:08 PM

Quote from: Sonny on February 09, 2014, 10:34:34 PM

Only if mtgox has enough btc to cover everyone's withdrawal, especially many people may cancel their USD withdrawal, buy bitcoin and withdraw their all their bitcoin from mtgox.

You do realize that for every Bitcoin bought one is sold, right?

MtGox does not buy or sell. They match buyers with sellers.

Theoretically yes..but who know if mtgox really hasn't touched the bitcoin.......

Particularly after reading that 2010 Mtgox thread that shows that Gox didn't even hash user passwords and could have accessed the cash and coins without problems.

Barek

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Quote from: medicine on February 09, 2014, 11:58:16 PM

3pm in Japan now and no word yet. Either they are waiting until the end of the workday to announce something, or as many people have said, they problem is much worse than their last notice let on.

Is their website the first spot they will post a new notice or do they post quicker to Facebook and Twitter?

A more precise time for the update sure would have been nice.

There is https://twitter.com/mtgoxalerts, but all it seems to do is point to the posts on https://www.mtgox.com/news.

medicine

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3pm in Japan now and no word yet. Either they are waiting until the end of the workday to announce something, or as many people have said, they problem is much worse than their last notice let on.

Is their website the first spot they will post a new notice or do they post quicker to Facebook and Twitter?

Barek

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Quote from: infoman on February 09, 2014, 11:42:59 PM

its all good, I am happy that they are fixing it, it is just soo easy at this point to rather syphon off the btcs and do a runner, we are talking about $M-s here, and gox's reputation is pretty tarnished by now. Is it worth fixing? I hope so, I have quite a few $1000s sitting there, would I keep the funds there when I have a chance to move out? not that sure about that!

Oh, by all means, take advantage of the frenzy. This recent development must be a wet dream for anyone that does arbitrage.

infoman

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Quote from: Barek on February 09, 2014, 11:36:13 PM

Quote from: infoman on February 09, 2014, 11:11:37 PM

yeah, but btc withdrawal is suspended, and when it was not suspended, it was not going through either.

Exacly, BTC withdrawals weren't working (well) for weeks. They finally acknowledge this and say they are going to fix it and what do people do? They freak out, instead of being happy that it is finally being looked at.

its all good, I am happy that they are fixing it, it is just soo easy at this point to rather syphon off the btcs and do a runner, we are talking about $M-s here, and gox's reputation is pretty tarnished by now. Is it worth fixing? I hope so, I have quite a few $1000s sitting there, would I keep the funds there when I have a chance to move out? not that sure about that!

Barek

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Quote from: infoman on February 09, 2014, 11:11:37 PM

yeah, but btc withdrawal is suspended, and when it was not suspended, it was not going through either.

Exacly, BTC withdrawals weren't working (well) for weeks. They finally acknowledge this and say they are going to fix it and what do people do? They freak out, instead of being happy that it is finally being looked at.

infoman

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Quote from: ?? on ??

Quote from: Sonny on February 09, 2014, 10:34:34 PM

Quote from: keithers on February 09, 2014, 09:13:23 PM

I would say BTC, because even if they dont have any liquid cash, you should in theory still be able to withdraw your BTC, since that doesnt require any money or banking partner for withdraw

Only if mtgox has enough btc to cover everyone's withdrawal, especially many people may cancel their USD withdrawal, buy bitcoin and withdraw their all their bitcoin from mtgox.

One had better do it sooner rather than later in that case.

yeah, but btc withdrawal is suspended, and when it was not suspended, it was not going through either.

hellscabane

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Quote from: Sonny on February 09, 2014, 10:46:14 PM

Quote from: Barek on February 09, 2014, 10:40:08 PM

Quote from: Sonny on February 09, 2014, 10:34:34 PM

Only if mtgox has enough btc to cover everyone's withdrawal, especially many people may cancel their USD withdrawal, buy bitcoin and withdraw their all their bitcoin from mtgox.

You do realize that for every Bitcoin bought one is sold, right?

MtGox does not buy or sell. They match buyers with sellers.

Theoretically yes..but who know if mtgox really hasn't touched the bitcoin.......

Although they also likely skimed based on transaction and buy/sell fees. I wouldn't be surprised if they have some sort of calculation akin to M0 and M1 money supplies and based on that they "play/use" the difference (kinda like a derivatives transactor to provide further insurance value, but instead of using it for stability purposes, they gambled with it).

cwfabc

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I buy back 50% btc @this price
low than chinese platforms is ok

Sonny

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Quote from: Barek on February 09, 2014, 10:40:08 PM

Quote from: Sonny on February 09, 2014, 10:34:34 PM

Only if mtgox has enough btc to cover everyone's withdrawal, especially many people may cancel their USD withdrawal, buy bitcoin and withdraw their all their bitcoin from mtgox.

You do realize that for every Bitcoin bought one is sold, right?

MtGox does not buy or sell. They match buyers with sellers.

Theoretically yes..but who know if mtgox really hasn't touched the bitcoin.......

Barek

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Quote from: Sonny on February 09, 2014, 10:34:34 PM

Only if mtgox has enough btc to cover everyone's withdrawal, especially many people may cancel their USD withdrawal, buy bitcoin and withdraw their all their bitcoin from mtgox.

You do realize that for every Bitcoin bought one is sold, right?

MtGox does not buy or sell. They match buyers with sellers.

Sonny

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Quote from: keithers on February 09, 2014, 09:13:23 PM

I would say BTC, because even if they dont have any liquid cash, you should in theory still be able to withdraw your BTC, since that doesnt require any money or banking partner for withdraw

Only if mtgox has enough btc to cover everyone's withdrawal, especially many people may cancel their USD withdrawal, buy bitcoin and withdraw their all their bitcoin from mtgox.

keithers

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This is the land of wolves now & you're not a wolf

I would say BTC, because even if they dont have any liquid cash, you should in theory still be able to withdraw your BTC, since that doesnt require any money or banking partner for withdraw

Topic: MtGox - if insolvent, better to hold cash or BTC? (Read 2490 times)