Topic: the price will recover just like it did from the mtgox debacle over 2 years ago (Read 1301 times)

The Gox catastrophe was telegraphed a miles in advance. For months and months, account holders couldn't withdraw fiat, but could withdraw BTC. However, partly as a result of this, Gox generally traded at a $50-$60 premium to Stamp, which back then was the out and out market leader in terms of USD exchanges, and yeah, a huge amount of the BTC lost on Gox, was early adopter BTC. BTC bought in double or even single figures, but with losses priced in upper treble figures. Bitfinex on the otherhand, has grown enormously over the past 18 months or so, and obviously, Finex has a lot of 'new' money on it....or had a lot of new money on it.

In all honesty, I think this Finex theft will have more serious impacts on Bitcoin than MtGox. Back when MtGox happened, there was still a widespread belief that Bitcoin was destined for 4 figures. These days, Bitcoin needs a minimum price of $500 to make it worthwhile for the miners to have their farms running, powering the Bitcoin network. Going forward from here, even if BTC gets back up to mid $600s, I think it is very likely that Bitcoin will dip well below that $500 threshold. A whole bunch of BTC liquidity providers aren't going to want to play anymore. A whole bunch don't have the means to play anymore, and then there is the small matter of 120K BTC that will eventually find itself being fed to the market going forward. Going to be a testing time for Bitcoin imo.

I get the impression that gox had a lot of historical users but it wasn't the market leader by that point. china and bitstamp had both surpassed it. the problem was that people were using it as a wallet and there were old coins on there too so the number of coins was a lot higher than bitfinex. it was a long time brewing and it wiped out a lot of the old guard.

We have recovered already and we are now going to the upward direction and price fall back was just temporary, I can conclude now that bitcoin has a stable market already as it can easily recover from any market crisis, and one thing I would like to congratulate those investors who have bought when the price drop hard as they are beginning to enjoy their profit now.

curious point, op;
i'm under the impression that the mtgox incident was much more catastrophic than bfx hack, in terms of size & market impact; as in waaay more catastrophic;
i wasn't around when it happened & i might be totally wrong. (currently doing a little digging on what happened then.)
but is it fair to compare bfx hack with mtgox shutdown?!

Proudhon back! thats a bullish indicator

bitcoin is still tiny and if it really wants to become something then a handful of ex bitfinex traders telling their drinking buddies that it's a bad idea is 100% irrelevant. overall this ain't gonna change how the masses feel about it because they feel nothing at all. it's another black mark of many and they all need to be left behind. it's up to a generation of better infrastructure to do that.

how it did not recover if the price went up a lot to 1200 dollars after some time? i think it will recover really fast and we will see new heights once again

We never recover fully from hacks like this, because it leaves a mark on the many people who lose money and leave the community and then bad mouth Bitcoin to their friends and families. The

negative ripple effect of these hacks are much bigger than the few people who lost money in these hacks. A lot of these people turn against Bitcoin and even turn shill. We should fight hacks like this and

even reveal the identity of the people behind these hacks, when they use mixing services. The authorities should not have to subpoena these services for the information, we should give it up

voluntarily. { If Bitcoin is used for crime, people must report it and work with the authorities to catch these criminals. }

A couple of videos for new viewers 

The proudhon song (bitcoin is a bubble)

Blame it on MT.GOX

Bingo!

Except for the fact that it never did recover from the Gox drama...

Almost. I'm suggesting that prices won't recover, just as they haven't after gox. Bitcoin is done, folks. Though, no doubt people will play at it all the way to the bottom for years to come.

These kind of incidences will happen again for sure in the future. No one will ever know what exactly happened- real hacking or insider job.

Nevertheless, bitcoin itself is not hacked so it will continue to move forward. Current price per coin should be around $600, IMO.

http://bitcoinx.io/news/articles/the-number-of-exchanges-hacked-this-year-may-surprise-you/



$250? you should be wiping ur ass with $250 if ur playing with btc

consider it a gift of cheaper prices...

this bull run is far from over...yeah perhaps another 3-6 months to build another ascending triangle but...with how the gloal financial world is going....it's going to go higher just on the fundamentals of how fucked up fiat currencies are to begin with.

This should serve as a lesson to clients not to put too much of their bitcoin in exchanges. It has happened before, it happened again, and it will surely happen again in the future. Until I see the price recover back to the mid $600 levels, I wouldn't count on it to be stable in the next coming days.

I can only hope this keeps the price below $600 for a month or two. I have a feeling three digit prices won't last long...

I was slow to realize that there was a security breach at bitfinex. Now I get the sudden drop in price yesterday. This is concerning because you can't effectively trade without using an exchange.

Lmao!

I think you missed OP's message. He's trying to show that it will take years to recover like it did after gox.

And I completely disagree, gox was a different beast and felt a lot worse than this. This will bounce back soon and I'm still expecting this year to be bullish overall


Trust me I am a true legend

 



oooooh, no ... you don't want this.


trust me.


if you think that Bitcoin Core is a mess ... you don't have seen the 1/10 part of the atrocity of a centralised system like the NYSE (inside the hole of impossible).



Bitcoin Core, it's the heaven's door ...

I am doing my trades on Bitstamp and Kraken, and so far nothing weird or suspicious has happened to me. But I do agree with you on the fact that current BTC exchanges are nothing more than a joke. I think Bitcoin needs an exchange that is maintained by NYSE for example. One global order book and a professional platform is what we need. Wall street traders will not buy themselves a position into Bitcoin with the current exchanges. And I can't blame them for that.

Okay, that freaked me out. I didn't know there was so many hacks on bitcoin exchanges this year. I hope we don't see any more of them...
Anyone got something like this from previous years?

http://bitcoinx.io/news/articles/the-number-of-exchanges-hacked-this-year-may-surprise-you/

2016 is busy ... 

From: https://bitfinex.statuspage.io/#



Seems like Finex are going down the route of passing the losses onto accounts that were drained of BTC and/or had BTC/USD tied up in margin trades affected by the theft.

From a selfish point of view....thank fuck that Finex are going to screw over their customers whose accounts were drained and not socialise the losses. I have already been burned on Kraken a fortnight ago, (no fkn socialised losses there), I could really do without it happening again on Bitfinex (I had only USD on Finex. No Bitcoin).

I had already long decided to remove all funds from BTC and keep the fuck away from this corrupt cesspit of a market after my Kraken account was emptied.....I imagine after this massive Bitfinex theft, that there will be many more Bitcoin market participants who are thinking just like me. Could be the beginning of the end for Bitcoin imo. What might save Bitcoin is the emergence of highly liquid, fully regulated, and fully accountable exchanges...but until then, this is the Wild West, and everyone is getting shot up and getting weary of it.

I was a bit shocked when I read you saying 120K coins are lost, but it seem to be right. Coindesk is also reporting about 120K. The losers are always the customers. Same as banks going down, customers pay for the trash left by the bank, which in this case happens to be a Bitcoin exchange. I am actually surprised that the price is holding its position right now. With that many coins stolen I expect the price to stay below $500 for a while.

i hope that you are right though the price of the bitcoin is unpredictable and anything might happen so i wouldnt be so sure about it right now

120K BTC were stolen.

Also, Bitfinex seem to be taking the line, that the BTC that were drained from the 'segregated wallets', are the liability of those whose accounts were affected.

In otherwords, the losers aren't going to be the exchange, but account holders whose wallets were drained of BTC.

The price will always recover from pure negativity. That aside, is there a legit source of information regarding how many coins are lost? So far I have seen a huge variety in what people think Bitfinex has lost.

It's good seeing the legendaries chime in on all of this.  I'm with OP.  Markets overreact like some piss-poor method actor, and if I had any more money I would be f-ing all in.  This is a great buying opportunity IMO.

Also, thanks for posting that chart.  I haven't actually looked at a bitcoin chart in many months.

we convert humanity.



it's a long job ...



after all, star trek don't need money to travel, right ?




right.