i saw this from the official mtgox announcement
"As expected, when withdrawals recommence they will do so “at a moderated pace and with new daily/monthly limits in place” to prevent a run that could put too much strain on the company’s resources."
i cannot understand why it would put a strain on the company's resources. after all they are meant to have with them (even if it is in cold storage) every bitcoin that everyone has ever bought on the exchange until he withdraws it. it is not a bank where they lend out money and can have a liquidity issue or a run on a bank. there should never be an issue of a run on an exchange since they should have every btc accounted for.
am i making a mistake or is this a very suspicious statement
please let me know
thanks
Topic: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion - page 29569. (Read 26610910 times)
February 17, 2014, 09:17:55 AM
February 17, 2014, 09:17:26 AM
Their problem now is knowing who cheated with their buggy accounting and have a (virtually) negative balance.
They have to :
- review all "failed" withdrawals of the last 6 months
- find those that were manually or automatically re-credited and then sent twice to the same person
- try to "reclaim" some of the balances if they were transferred internally after the stop (I expect very bad surprises for those who bought discounted Goxcoins last week)
- put a big red sign on any account that had a suspicious activity
- calculate the loss they have to take (sum of negative balances from non solvable clients),
- know if they are broke or not
- decide whether they tell us or not...
thanks, nice explanation
February 17, 2014, 09:17:24 AM
Yes. I have been posting to forums for some 35 years, and I still keep making the same mistake, over and over again: thinking that readers will recognize blatant sarcasm even without the " 
"
"Wait a minute. I was a BBS user back in the time of 300bps modems. Emoticons were invented in the mid 80's, so your statement is technically false.
Doh! sarcasm... I expect only the British to use this
I did consider that it was sarcasm, but to be honest after reading the first question
* How many weeks does it take for the network to process a transfer of a few thousand bitcoins from MtGOX's cold wallet to MtGOX's hot wallet?
The sarcasm was sort of lost on me, I assumed it was ignorance, because the issue is not how long it takes, but time and human effort involved, I guess it's my bad
Based on your experience I should have know better.
February 17, 2014, 09:14:21 AM
From what I have read, Mark is holding at least 40,000 BTC that do not belong to him, whose owners have been trying to withdraw for months.
no, those bitcoins in failed tx were stolen with the bug of send new mined coins, tx fail and modified mutant transaction with diff tx id gets relayed by hacker and then gox credited back the btc. rinse, repeat. But that should not be the case of people who are publicly demanding their coins and/or dollars, right? Like Rick Falkvinge, or those people who went to protest in front of MtGOX's offices.
When Rick requested a BTC withdrawal, the transaction issued by MtGOX must have pointed to his external wallet, and the hack would not change that; all that the hacker could do is trick MtGOX into crediting back the BTC to Rick's account, in spite of the transfer haviing occurred. But Rick and all those other clients apparently did not get his BTC. So what happened in those cases?
(And note that, AFAIK, Rick is still a fan of bitcoin, in spite of his problem with MtGOX.)
EDIT: typos
February 17, 2014, 09:11:54 AM
You may counter with 'people will then deposit BTC in to Gox to arb the premium' but let's see....
Thats not going to happen is it. You cant get goxbuxx out. Gox has been $200-300 above stamp at times in the last few months and thats because an arb that way doesn't work if you cant get your fiat.
That is what I meant. I was saying 'you may say' meaning that would be the counter-argument to my postulation.
I agree with you - I think people will not want Goxbux and so any exodus of Coins will immediately produce a spike in prices (in Goxbux) of BTC on MtGox. If people won't pay it, the market may correct this, or the exchange may experience a lack of trading.
But I think Gox is assuming this too - hence proposing they open with limited withdrawals in terms of frequency and number of BTC.
February 17, 2014, 09:04:08 AM
Yes. I have been posting to forums for some 35 years, and I still keep making the same mistake, over and over again: thinking that readers will recognize blatant sarcasm even without the " "
"Wait a minute. I was a BBS user back in the time of 300bps modems. Emoticons were invented in the mid 80's, so your statement is technically false.
February 17, 2014, 09:03:09 AM
Choo choo?
February 17, 2014, 09:00:56 AM
There is a lack of locomotives in here.
February 17, 2014, 09:00:37 AM
Also, it makes sense to keep the hot wallet small to reduce the risk.
You already know that I am totally ignorant on how bitcoin works, and too old to learn; so forgive me for asking:
1* How many weeks does it take for the network to process a transfer of a few thousand bitcoins from MtGOX's cold wallet to MtGOX's hot wallet?
2* How many such transfers from the same wallet can the network handle per month?
3* If bitcoins were transferred into a wallet using certain custom software, can they be transferred out using a different software?
4* If so, how much would MtGOX have to pay for a software that they could use to process the pending withdrawals, while they fix theirs?
1) To transfer coins from a cold wallet to a hot wallet is instant. (approx 10mins, or 1 confirmation to be sure)
2) Unlimited transfers (within reason) per month
3) Yes, all software makes transactions on the blockchain
4) No idea, I'm guessing though trust is a major issue when it comes to wallet software. Would you really trust an unknown contractor who was indirectly given access $50million worth of BTC not to leave a back door? This is probably why Mark wants to control the whole process and why he is being thinly spread.
Jorge you should really get some Bitcoins and play with some of the software and wallets a little, just so you understand what its like to use.
February 17, 2014, 08:59:07 AM
So why would Stamp and other exchanges rally too? There was no information released regarding them. Stamp already fixed its withdrawals days ago. And IF gox withdrawals are fixed all it means is there are more coins on the market getting dumped into Stamp.
There is no point in asking serious questions in this thread anymore. The rationale of most people here either believe it should go up 100% of the time or down there is never an in between. When you disagree with their view point they get angry at you.
Please. Please go back and quote the last bullish post you made on this forum. I wonder if you can document even 1. On the contrary, find me a "bull" on here that hasn't been bearish at some point(s). You can't.
Not sure if you're serious, but: are you implying that, on average, the *bears* in here are more stubbornly bearish than the *bulls* being stubbornly bullish?
We must read different fora then
February 17, 2014, 08:55:38 AM
Actually - allowing limited withdrawals makes sense - they must fear a 'run' on BTC either crashing the exchange (with it's new software fix being untested, too) - or meaning they have so little liquidity that their business is finished.
From what I have read, Mark is holding at least 40,000 BTC that do not belong to him, whose owners have been trying to withdraw for months.
Does that make any sense?
no, those bitcoins in failed tx were stolen with the bug of send new mined coins, tx fail and modified mutant transaction with diff tx id gets relayed by hacker and then gox credited back the btc. rinse, repeat.
the failed tx you saw at coinsight.com/mtgox are because gox accounting program still thinks those coins are unspend.
but they are gone.
and it's gone. Gone!
February 17, 2014, 08:33:39 AM
s
Some of the questions you ask are in line with some of the silly stuff you see on reddit. Its like you havent even read the bitcoin FAQ.
Some of the questions you ask are in line with some of the silly stuff you see on reddit. Its like you havent even read the bitcoin FAQ.
You are too old to learn, apparently.
Yes. I have been posting to forums for some 35 years, and I still keep making the same mistake, over and over again: thinking that readers will recognize blatant sarcasm even without the "
" @all smartasses - OWNED
February 17, 2014, 08:31:42 AM
s
Some of the questions you ask are in line with some of the silly stuff you see on reddit. Its like you havent even read the bitcoin FAQ.
Some of the questions you ask are in line with some of the silly stuff you see on reddit. Its like you havent even read the bitcoin FAQ.
You are too old to learn, apparently.
Yes. I have been posting to forums for some 35 years, and I still keep making the same mistake, over and over again: thinking that readers will recognize blatant sarcasm even without the "
" February 17, 2014, 08:31:08 AM
I guess we should quit picking on Jorge.
http://www.reddit.com/r/Bitcoin/comments/1y4rx2/moronic_monday_ask_all_the_question_you_are/
Not picking on him but its hard to keep answering questions that would be obvious if you did some reading like the majority of us have done.
February 17, 2014, 08:29:40 AM
You may counter with 'people will then deposit BTC in to Gox to arb the premium' but let's see....
Thats not going to happen is it. You cant get goxbuxx out. Gox has been $200-300 above stamp at times in the last few months and thats because an arb that way doesn't work if you cant get your fiat.
February 17, 2014, 08:28:53 AM
Also, it makes sense to keep the hot wallet small to reduce the risk.
You already know that I am totally ignorant on how bitcoin works, and too old to learn; so forgive me for asking:
* How many weeks does it take for the network to process a transfer of a few thousand bitcoins from MtGOX's cold wallet to MtGOX's hot wallet?
* How many such transfers from the same wallet can the network handle per month?
* If bitcoins were transferred into a wallet using certain custom software, can they be transferred out using a different software?
* If so, how much would MtGOX have to pay for a software that they could use to process the pending withdrawals, while they fix theirs?
Like others have said I respect your CV , I really do, but you need to get some btc and start using it, some of the questions you ask are in line with some of the silly stuff you see on reddit. Its like you havent even read the bitcoin FAQ.
I guess we should quit picking on Jorge.
http://www.reddit.com/r/Bitcoin/comments/1y4rx2/moronic_monday_ask_all_the_question_you_are/
February 17, 2014, 08:28:36 AM
We have 12h green mac'd on the most exchanges, its been almost 2 weeks since we had that
You're right.
CCMF!
February 17, 2014, 08:26:23 AM
Actually - allowing limited withdrawals makes sense - they must fear a 'run' on BTC either crashing the exchange (with it's new software fix being untested, too) - or meaning they have so little liquidity that their business is finished.
Allowing 'some' withdrawals will mean people wish to hold BTC instead of Fiat, which will inflate the price on Gox, and at this point, some people might decide to stay.
If Gox is clever, it will still have a business left. Don't get me wrong - I will be the first in the queue to get out, but it is a logical solution.
I did think this was their only logical way out (assuming they really do intend to stay in the game).
Allowing 'some' withdrawals will mean people wish to hold BTC instead of Fiat, which will inflate the price on Gox, and at this point, some people might decide to stay.
If Gox is clever, it will still have a business left. Don't get me wrong - I will be the first in the queue to get out, but it is a logical solution.
I did think this was their only logical way out (assuming they really do intend to stay in the game).
If you look above I made a point about a bank run crashing the sofware. How does limiting withdrawal amounts cause the software not to crash? Surely you should be limiting withdrawal requests.
Yes, but if they limit it to xx BTC per day and one tx per day, and (then maybe say) have a time delay for 'verification' - it will reduce both the crash risk and the risk of a depletion of all liquidity on the 'exchange'.
Im not understanding your thinking. Liquidity on the exchange would be fiat. People aren't looking to sell for goxbuxxx so why would there be a reduction of liquidity on the exchange. You cant get goxxbuxx out the only way to leave is with btc. The exchange is actually very liquid if you really want to sell your btc and not buy it back. Ive been up all night so excuse me if Im completley missing something.
No - you have a fair point - it would mean a higher price on Gox for BTC all over again with a possibly prohibitive premium on buying that would freeze it up, which could then be a liquidity problem.
You may counter with 'people will then deposit BTC in to Gox to arb the premium' but let's see....
February 17, 2014, 08:25:36 AM
We have 12h green mac'd on the most exchanges, its been almost 2 weeks since we had that
February 17, 2014, 08:25:05 AM
Anybody can access blockchain.info?
Blockchain.info @blockchain 2h
Scheduled maintenance starting in 10 minutes.
https://twitter.com/blockchain
I hoped to see reactions from bears that go like this:
MARK HAS SCAMMED BLOCKCHAIN. ALL BTC BELONG TO HIM NOAW!
MTGox work togetha with BLOCKCHAIN, THEY STOLE ALL OUR BTC'S! PRICE WILL DROP BELOW $40/BTC. GO SHORT NOAW! NOAW!!!!!
You mean Mark owns soon all the frappuccinos?
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