Topic: Mt.Gox SCAM? $38million disappeared. Large sums affected. - page 14. (Read 38183 times)

you need a scheme for that. problem is, as was noted, the fiat part. one could go even as far as have a completely transparent system, so that fiat movements can be inferred  (orderbook is public, so you have the total balance).

Amazing that people prefer to withdraw BTC instead of USD.

I've got 17btc that I withdrew 5 days ago. They have still not appeared in my wallet...

BTC quickly losing popularity.

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It is an experiment how a Bank Run or self regulated virtual financial world occurs on BTC world.

Nothing can make BTC more safe than improving the core technology itself.

The cost of lawyers and politicians participations is the fundamental cost of trust that collapse the FIAT world where monetary system cannot be trusted unless the terms "legal tender" which means the trust is none except by brute force of legal tender status.

There are few concepts which deter monopoly centralize mining power and introduce trust on the merchant reputations payment address.  MT GOX is the most reputable exchange and under attack.  After the event is over, BTC will hit new high and possibly rise 10 folds against FIAT where BTC can resolve problems unseen in FIAT world.

And Price drops...like it always does when something happens to MtGox.

Yeah, Ethereum-scam-team cashed out their 36 millions from the IPO.

They are now having a good time, really good time.

Panic sell happening?

Is it really verifiable?
You have no way of knowing whether transfers out of a wallet are customer withdrawals, transfers to another exchange wallet, or siphoning off of funds.

Yes - Ethereum.

this is a very good idea, there is not reason why an exchange could not publish all BTC received and thats verifiable. This would attract a lot more confidence to that exchange and thus volume.

then the next side would be how much fiat they hold but thats easier to lie about. The question is how much BTC/FIAT is off the market but on the exchange ready to go.

I am almost sure Gox is fractional reserve in BTC and FIAT.

I feel something has to give here, and once this is sorted out, it will be the next impetus to an evaluation even like what happened after SR1 went down.

So cheap coins then explosion in price.

You just can't have problems sending BTC, thats the whole point of the protocol.

Unless you don't have BTC to send.

You really think bitcoin could crash to 100$? Or just rumors and panic again?
Don't use mtgox thought!!!!

Lol yup it is an interesting situation. Can't get fiat out nor bitcoin. Luckily for me I have $0.01 on there. 

It was possible to withdraw BTC out of Mt.Gox in the past

I think exchanges should post collateral / make their balances partly public through HD of other means. It's probably not that hard to do. Every exchange with closed books would then suffer from less confidence. This would be much more efficient than any local regulation.

I have no idea about their intentions. But it is very easy to see that technically they are not up to the ask. Just a couple of examples:

* use of SQL. the use of standard databases does not make much sense. SQL lets you do row selections on large tables. an exchange is not just a random large table. if even you hand optimize SQL you don't really know what you're doing.

* use of HTTP. GET/POST'ing orders is pretty inefficient. why would use want to use HTTP? there is this thing called the internet where we have TCP/IP. HTTP does not allow for the complex interaction between nodes that is needed (heartbeating as a basic example).

* the API. terrible design.

noted, the same applies for all major exchanges at the moment, but the others seem to have at least a rough idea what they are doing in terms of software engineering. it looks like MtGox doesn't even have proper test procedures. not even speaking about complex race conditions and latency issues. I haven't studied it, but I'm sure most exchanges can be attacked/gamed, not speaking of outright hacks. I would assume exchanges are a high value targets for blackhats. Wasn't there also the claim that MtGox withholds 30-50M$ from some past issue?

Only to BUY THEM BACK.

Unfortunately the reality is that they aren't your coins, because you don't control the wallet they are stored in.
You gave Bitcoins to MtGox, they gave you an IOU in return.
You were trusting them to honor that IOU, and therefore valued it the same as the Bitcoins you transferred to them.
That may have been a mistake.

It's like 2013 all over again...

Good news! Mt Gox just processed $2,069,500 of the $38M they hadn't processed earlier: 41,390 (BADTX) x 50 (decrease in exchange rate since last cal. for the $38M fig.) = $2,069,500.