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Topic: MtGox liquidation.. How will selling 200,000[btc] affect the price? (Read 3449 times)

sr. member
Activity: 266
Merit: 250
Do they not have to split up all the BTC between everyone gox owes BTC too...?

As already discussed here many times, unfortunately that is not going to happen. As a part of the liquidation process, the authorities will auction off the remaining Gox coins and convert them to fiat.

There is no real precedent to liquidating bitcoin (or other electronic currency) in a bk proceeding. It appears that the law would probably have the coins be sold, but it would not be too much of a stretch to say a new precedent could be formed.

Unless someone outright buys Gox they are going to liquidate.
sr. member
Activity: 448
Merit: 250
It's Money 2.0| It’s gold for nerds | It's Bitcoin
Do they not have to split up all the BTC between everyone gox owes BTC too...?

As already discussed here many times, unfortunately that is not going to happen. As a part of the liquidation process, the authorities will auction off the remaining Gox coins and convert them to fiat.

There is no real precedent to liquidating bitcoin (or other electronic currency) in a bk proceeding. It appears that the law would probably have the coins be sold, but it would not be too much of a stretch to say a new precedent could be formed.
sr. member
Activity: 406
Merit: 250
Could be a good buying opportunity for sure. I hate seeing this happen to members of the community though.
hero member
Activity: 658
Merit: 500
Buy and sell bitcoins,
http://www.startribune.com/world/255457651.html

So... They are going to liquidate. Won't that completely crash the exchange rate?

I imagine if any of it makes its way to an exchange, it would be in small trickles. Most likely situation is that this will really soak up off-exchange buying pressure. And that could spill over to the exchange rate, for sure.
sr. member
Activity: 266
Merit: 250
They will likely sell via an auction to most likely large buyers. Similar to how the seized Silk Road coins were sold.
legendary
Activity: 3654
Merit: 1217
Do they not have to split up all the BTC between everyone gox owes BTC too...?

As already discussed here many times, unfortunately that is not going to happen. As a part of the liquidation process, the authorities will auction off the remaining Gox coins and convert them to fiat.
sr. member
Activity: 266
Merit: 250
If you believe that 99% would not buy bitcoin when they receive their disbursement from the liquidation, then do you also believe that 99% would have sold the bitcoins had they received the disbursement in bitcoin rather than fiat?

Selling your bitcoins is another thing. But once gain buying Bitcoins for the cash is entirely different. I know 3-4 people who have lost money in Mt Gox (I myself lost BTC0.001). All of them are distraught and have lost their interest in Bitcoins. Bad for them, they decided to keep all their coins in an exchange. Most of them were active in the crypto-scene for almost 2 years. But now, they have quit.

I have tried to persuade them to collect BTCs once again. Know what? They are asking me, Bitcoin scams are happening every now and then. Most of the Bitcoiners refuse to do anything against it (freezing the stolen coins.etc), then why should they trust in crypto anymore?

I myself has lost 80% of my coins in BTCT.co. If I lose my remaining 20%, then I'll also quit dealing with BTCs.  Grin

The question of whether or not they trust cryptos is irrelevant. Like it or not, cryptos, like the internet, once invented, is here to stay.  Cryptos in itself is a trustless system after all, so it's kinda an oxymoron as well.

Look, all of these so called 'scams' are due to human actions. By blaming Bitcoin it's like, you're not careful with your money you blame the money scamming you, that's just how ridiculous it sounds.
legendary
Activity: 1722
Merit: 1000
Do they not have to split up all the BTC between everyone gox owes BTC too...?
full member
Activity: 140
Merit: 100
http://www.startribune.com/world/255457651.html

So... They are going to liquidate. Won't that completely crash the exchange rate?

this will have a long term effect like I have already predict in the past. See the price drop today.
legendary
Activity: 3654
Merit: 1217
Well, perhaps that means the reserve price is 0 -- they will be sold, no matter what the price. I don't know.

A lot of people are already lining up for the auction. So I don't expect anything more than a 20% discount to happen. And there is a chance that the winner of the auction decides to hold on to to his coins, rather than selling them in the exchanges.
member
Activity: 118
Merit: 10
converted into cash, the investigation of the claims, etc. will be conducted, and if funds for a distribution are secured, the liquidating distribution will be made.

Well, perhaps that means the reserve price is 0 -- they will be sold, no matter what the price. I don't know.
legendary
Activity: 3654
Merit: 1217
^^^ This is what we got fro the Mt Gox website:

Quote
The bankruptcy trustee will implement the bankruptcy proceedings, in which the assets of the bankrupt entity will be managed and converted into cash, the investigation of the claims, etc. will be conducted, and if funds for a distribution are secured, the liquidating distribution will be made.


They are just saying that assets of the bankrupt entity will be managed and converted into cash. There is no clause saying that the coins could not be later sold through the exchanges.
member
Activity: 118
Merit: 10
They may go to private sale, but the buyer (or buyers) could put them on the open market if they wanted... or had to... right? (unless they signed some contract not to, and who would... and wouldn't that lower their perceived value.)
legendary
Activity: 3654
Merit: 1217
No one will sell that amount and affect the price, who in the right mind will dig their own grave...

That is an incorrect argument. Imagine a thief who managed to steal BTC886,000 without spending even a penny. Even if he sells his coins for just $10, it is a net profit for him. Let's hope he is not that clever.  Grin
legendary
Activity: 1162
Merit: 1007
I myself has lost 80% of my coins in BTCT.co. If I lose my remaining 20%, then I'll also quit dealing with BTCs.  Grin
It sucks to lose wealth to incompetent or unscrupulous third parties.  I think what we need is a trustless system for storing, transporting, and exchanging value with users across the world, without having to rely on third parties.  It would be nice if we just needed to protect one piece of information to secure our funds too.  Something like a 78-digit number that nobody could ever guess.  

I bet something like that would really catch on.  
Probably would... I suppose we could use cryptographic signatures to sign transactions and maybe a public ledger to protect us against duplicate transactions.

Brilliant idea to use cryptographic signatures.  That way we can prove knowledge of our 78-digit passwords without actually trusting them to a third-party.  Now we just need a practical method to timestamp transactions.  I wonder if we could use a proof-or-work based peer-to-peer network of nodes?

Quote
Why didn't anyone think of this before the gox scandal?

Yeah, so weird. Think of the damage that could have been prevented if such a system had existed.  

 
member
Activity: 74
Merit: 10
Those coins will never be sold at once and in a public sale. Some small % will but large portion, never. No one will sell that amount and affect the price, who in the right mind will dig their own grave...
legendary
Activity: 3654
Merit: 1217
It sucks to lose wealth to incompetent or unscrupulous third parties.  I think what we need is a trustless system for storing, transporting, and exchanging value with users across the world, without having to rely on third parties.

Such a system would be good.... but I fear that it will be against the basic principles of Bitcoin (decentralized currency, controlled by no one). So the third parties are here to stay.
full member
Activity: 216
Merit: 100
It sucks to lose wealth to incompetent or unscrupulous third parties.  I think what we need is a trustless system for storing, transporting, and exchanging value with users across the world, without having to rely on third parties.  It would be nice if we just needed to protect one piece of information to secure our funds too.  Something like a 78-digit number that nobody could ever guess.  

I bet something like that would really catch on.  

Probably would... I suppose we could use cryptographic signatures to sign transactions and maybe a public ledger to protect us against duplicate transactions. Why didn't anyone think of this before the gox scandal?
legendary
Activity: 1162
Merit: 1007
If you believe that 99% would not buy bitcoin when they receive their disbursement from the liquidation, then do you also believe that 99% would have sold the bitcoins had they received the disbursement in bitcoin rather than fiat?
I myself has lost 80% of my coins in BTCT.co. If I lose my remaining 20%, then I'll also quit dealing with BTCs.  Grin


It sucks to lose wealth to incompetent or unscrupulous third parties.  I think what we need is a trustless system for storing, transporting, and exchanging value with users across the world, without having to rely on third parties.  It would be nice if we just needed to protect one piece of information to secure our funds too.  Something like a 78-digit number that nobody could ever guess.  

I bet something like that would really catch on.  
legendary
Activity: 3654
Merit: 1217
If you believe that 99% would not buy bitcoin when they receive their disbursement from the liquidation, then do you also believe that 99% would have sold the bitcoins had they received the disbursement in bitcoin rather than fiat?

Selling your bitcoins is another thing. But once gain buying Bitcoins for the cash is entirely different. I know 3-4 people who have lost money in Mt Gox (I myself lost BTC0.001). All of them are distraught and have lost their interest in Bitcoins. Bad for them, they decided to keep all their coins in an exchange. Most of them were active in the crypto-scene for almost 2 years. But now, they have quit.

I have tried to persuade them to collect BTCs once again. Know what? They are asking me, Bitcoin scams are happening every now and then. Most of the Bitcoiners refuse to do anything against it (freezing the stolen coins.etc), then why should they trust in crypto anymore?

I myself has lost 80% of my coins in BTCT.co. If I lose my remaining 20%, then I'll also quit dealing with BTCs.  Grin
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