Let's say gox goes belly up.
Does it really make sense that when the adjudicators are dividing up what little, and I mean little, spoils are left over after the years of litigation, that they'll say that these guys over here will get their dollars back but those guys over there with BTC won't?
No, they'll be legally bound to return whatever form of property you had on gox. It would be way better to come out of that with 90% discounted coins.
Does it really make sense that when the adjudicators are dividing up what little, and I mean little, spoils are left over after the years of litigation, that they'll say that these guys over here will get their dollars back but those guys over there with BTC won't?
No, they'll be legally bound to return whatever form of property you had on gox. It would be way better to come out of that with 90% discounted coins.
Assets would be liquidated. Why do you assume BTC would not be? I highly doubt that BTC could be exempted from liquidation for any reason, but I am not well versed in bankruptcy law (in Japan, no less).
After liquidation, creditors are repaid, ordered by priority, then pro rata based on what is left. What is this idea that "they'll be legally bound to return whatever form of property you had" based on?
I suspect that the law deems fiat adequate for repayment of such debts.....
isn't BTC money?
every gov't on the planet seems to recognize it as such. why do you think they want their taxes from it and calls close to everyone who does business with it money transmitters? if i owned BTC on gox and needed it to be repaid after BK, i'd take the BTC, not cash.
No precedent for that. No reason to think that choice exists, IMO. The only money that you must legally accept as repayment is fiat money. And I think BTC would be liquidated to fiat years before you could take repayment.
I don't know about "every government on the planet" recognizing it as such -- but that is not relevant here, nor is money transmission. And governments want their taxes on commodity trading as well, don't they? And how about Japan?
Regardless of anything, you have to admit that assuming that bankruptcy trustees will liquidate everything except bitcoin is a giant leap of faith. Do you have a legal basis for that? Regulators, bankruptcy courts and trustees do not necessarily cater to the logic of bitcoiners.
But who knows? I don't. But I wouldn't touch Gox -- I simply think there are better bets to be had.
