Topic: RE: Gox -- this is what we wanted - page 2. (Read 1747 times)
That is a good point. This what free markets look like. Brutal, uncaring, and fair.
The Gox debacle is showing the system is working. No bailouts. No TARP deal with the fed the prints $ for those who apply, devaluing everybody else. The faulty part is removed from the BTC engine and replaced by better functioning and more diverse solutions. Bitstamp, coinbase, bitfinex, ATMs. Outside of BTC-land, the company gets bailed out and the people in charge remain to poison and drain the system of vitality forever.
When the engine hiccups some people get burned, and I am very sorry if you are one of them.
But bitcoin technology cannot help us if we don't USE it. WHEN are we going to insist that BTC balances are held by exchanges in individual, blockchain-verifiable accounts? Or even use multi-sig for greater security? To stop every trade from appearing on the blockchain, these accounts could be "renormalized" daily or even weekly.
When the engine hiccups some people get burned, and I am very sorry if you are one of them.
But bitcoin technology cannot help us if we don't USE it. WHEN are we going to insist that BTC balances are held by exchanges in individual, blockchain-verifiable accounts? Or even use multi-sig for greater security? To stop every trade from appearing on the blockchain, these accounts could be "renormalized" daily or even weekly.
We don't need Paulson and Geitner to bail us out
The Gox debacle is showing the system is working. No bailouts. No TARP deal with the fed the prints $ for those who apply, devaluing everybody else. The faulty part is removed from the BTC engine and replaced by better functioning and more diverse solutions. Bitstamp, coinbase, bitfinex, ATMs. Outside of BTC-land, the company gets bailed out and the people in charge remain to poison and drain the system of vitality forever.
When the engine hiccups some people get burned, and I am very sorry if you are one of them.
But bitcoin technology cannot help us if we don't USE it. WHEN are we going to insist that BTC balances are held by exchanges in individual, blockchain-verifiable accounts? Or even use multi-sig for greater security? To stop every trade from appearing on the blockchain, these accounts could be "renormalized" daily or even weekly.
When the engine hiccups some people get burned, and I am very sorry if you are one of them.
But bitcoin technology cannot help us if we don't USE it. WHEN are we going to insist that BTC balances are held by exchanges in individual, blockchain-verifiable accounts? Or even use multi-sig for greater security? To stop every trade from appearing on the blockchain, these accounts could be "renormalized" daily or even weekly.
Agree. This is actually what should happen. Unfortunate that people might get burned, but in an unregulated emerging market they are the risks. People that don't understand them should wait 'til the government makes it safe for them.
It is true that someone created this great decentralized commodity... and then we created a few simple points of failure in the form of exchanges. MtGox has been failing since mid 2013. An exchange you can't get money out of quickly and easily is not really an exchange.
It looks like the market has spoken with today's 50% collapse in GoxCoins, on top of the previous 50% discount. I don't know how MtGox digs its way out from here. Offering a discount on trades and maybe some free money to new customers just isn't going to cut it. Their rather ambiguous 20 February update about having to move due to 'security issues' was a terrible move. They've made the information vacuum go nuclear. Were angry customers turning up at their address demanding their money back or something?
It looks like the market has spoken with today's 50% collapse in GoxCoins, on top of the previous 50% discount. I don't know how MtGox digs its way out from here. Offering a discount on trades and maybe some free money to new customers just isn't going to cut it. Their rather ambiguous 20 February update about having to move due to 'security issues' was a terrible move. They've made the information vacuum go nuclear. Were angry customers turning up at their address demanding their money back or something?
+1000
This is great post. You are correct in that what we are witnessing is the laissez-faire free market of bitcoin working as it should. It will foster more competition in the market and between the exchanges. More exchanges will hopefully appear that can do a better job. It will put pressure on all exchanges to be better, to be smarter, to protect themselves, and also to protect their customers. Bitcoin will be stronger because of this.
I just hope it stays that way, and we don't someday in the future end up with "too big to fail" exchanges that need a bailout from either government or corporations in order for the bitcoin market to survive.
This is great post. You are correct in that what we are witnessing is the laissez-faire free market of bitcoin working as it should. It will foster more competition in the market and between the exchanges. More exchanges will hopefully appear that can do a better job. It will put pressure on all exchanges to be better, to be smarter, to protect themselves, and also to protect their customers. Bitcoin will be stronger because of this.
I just hope it stays that way, and we don't someday in the future end up with "too big to fail" exchanges that need a bailout from either government or corporations in order for the bitcoin market to survive.
The Gox debacle is showing the system is working. No bailouts. No TARP deal with the fed the prints $ for those who apply, devaluing everybody else. The faulty part is removed from the BTC engine and replaced by better functioning and more diverse solutions. Bitstamp, coinbase, bitfinex, ATMs. Outside of BTC-land, the company gets bailed out and the people in charge remain to poison and drain the system of vitality forever.
When the engine hiccups some people get burned, and I am very sorry if you are one of them.
But bitcoin technology cannot help us if we don't USE it. WHEN are we going to insist that BTC balances are held by exchanges in individual, blockchain-verifiable accounts? Or even use multi-sig for greater security? To stop every trade from appearing on the blockchain, these accounts could be "renormalized" daily or even weekly.
When the engine hiccups some people get burned, and I am very sorry if you are one of them.
But bitcoin technology cannot help us if we don't USE it. WHEN are we going to insist that BTC balances are held by exchanges in individual, blockchain-verifiable accounts? Or even use multi-sig for greater security? To stop every trade from appearing on the blockchain, these accounts could be "renormalized" daily or even weekly.
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