MtGox claims they have stopped withdrawals because there is a way to temporarily mess with the bitcoin log and leverage that to double-up on a withdrawal. This is true, but it is automatically corrected by the network with the first confirmation, so all they have to do is code their withdrawal system to wait for the first confirmation before doing another attempt, so it's a very easy security fix. I think their reason is false. I think they've lost a lot of bitcoin somewhere and are trying to hide that fact. They've also just moved their office to another address down the street from their old office, and it's apparently one of those office-in-a-postal-box locations, so that can't be good. I suspect they're going to be folding soon.
I suspect bitcoins will be fine and go back up once MtGox folds, or at least after they've been given up on by everyone. There are some other sites that will take up the slack. It's only effected the overall pricing because they were such a big player in the trading house game. At least I'm hoping they go back up, because I had to take $4600 in capital gains on my taxes for last year due to trading even though I never got cash out. I could offset any loses later against stock gains, but I'd rather eventually have the cash.
Cryptocurrency
Oh, no, I pulled them out ages ago when I discovered they weren't processing USD withdrawals. I immediately abandoned ship. I've got 1 at coinbase waiting to be sold and the rest in my personal wallet.
But I don't intend to sell any until they go back up to $1000. If the whole things collapses, then that's when I'll need to write off those loses later on.
But I don't intend to sell any until they go back up to $1000. If the whole things collapses, then that's when I'll need to write off those loses later on.
"ATTENTION: Customers browsing porn must hold magazines with both hands at all times!"
Bet the guy is trying to get out of the country asap.
Dear MtGox Customers,
In light of recent news reports and the potential repercussions on MtGox's operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. We will be closely monitoring the situation and will react accordingly.
Best regards,
MtGox Team
It's not me, it's someone else.
So far Japan has declined to do anything to him. The ministry in charge of finance who looks into bank collapses and the like says that bitcoins is not money and thus this is outside their jurisdiction.TheCatt wrote:Bet the guy is trying to get out of the country asap.
I have no idea what the laws of Japan are like, though, so there's no telling.
"ATTENTION: Customers browsing porn must hold magazines with both hands at all times!"
I think this might start the death clock on the Bitcoin concept if something doesn't happen to build trust back up. People don't trust banks, but you can at least pull out all your money and bury it in mason jars in the back yard when your distrust gets high enough. Without being able to hold something in your hand when the market gets uncertain is going to make things rough for investors in the trust department.
"... and then I was forced to walk the Trail of Tears." - Elizabeth Warren
MtGox wasn't some sort of central authority. It was just one independent exchange. You can still have your bitcoins in your wallet at home.
I get what you are saying about holding something in your hand, but I suspect a growing number of people don't think that way anymore. Digital entertainment has primed people to be willing to accept digital money. Not everyone, of course, but enough IMO.
I get what you are saying about holding something in your hand, but I suspect a growing number of people don't think that way anymore. Digital entertainment has primed people to be willing to accept digital money. Not everyone, of course, but enough IMO.
"ATTENTION: Customers browsing porn must hold magazines with both hands at all times!"
I think the future of the open digital currency will depend on how much of a bath Bitcoin takes. I don't think people mind buying different currency for different online shops, but having one over reaching currency will need to be rock solid for people to trust it. Maybe this will have no impact. Will be interesting to watch, though.
"... and then I was forced to walk the Trail of Tears." - Elizabeth Warren
MtGox Bankrupt, lost everything
Mt. Gox, the troubled exchange for the virtual currency Bitcoin, filed for bankruptcy protection on Friday and said that it might have lost 750,000 of its customers’ coins, essentially all of them, in a hacking attack.
The Tokyo-based exchange, which warned this month of a software flaw that may have allowed hackers to defraud it of Bitcoins, had halted all trading this week.
Mark Karpeles, the company’s chief executive, wearing a suit instead of his usual T-shirt, bowed in contrition and apologized in Japanese at a press conference in Tokyo.
“There were weaknesses in the system,” he said. “I’m truly sorry to have caused inconvenience.”
He said that the exchange had most likely lost 750,000 of its customers’ Bitcoin holdings and more than 100,000 of its own coins, or more than $450 million worth.
It's not me, it's someone else.
I think Mark may be bleeding before too long. $450M is enough to piss important someone off.TPRJones wrote:I figured the bleeding would stop once MtGox shut down completely. At least they had the decency to pull the plug fairly quickly.
Diogenes of Sinope: "It is not that I am mad, it is only that my head is different from yours."
Arnold Judas Rimmer, BSC, SSC: "Better dead than smeg."
Arnold Judas Rimmer, BSC, SSC: "Better dead than smeg."
I saw a couple of the other exchanges are saying they've been hacked as well. No where near the amount that MTGox had, but of note. So here comes the crossroads. Do they push for regulation which removes what makes the Bitcoin attractive, or do they keep it unregulated and the risk higher?
"... and then I was forced to walk the Trail of Tears." - Elizabeth Warren
For every human being that has to manage an exchange, it becomes exponentially harder to maintain security.Vince wrote:I saw a couple of the other exchanges are saying they've been hacked as well. No where near the amount that MTGox had, but of note. So here comes the crossroads. Do they push for regulation which removes what makes the Bitcoin attractive, or do they keep it unregulated and the risk higher?
Diogenes of Sinope: "It is not that I am mad, it is only that my head is different from yours."
Arnold Judas Rimmer, BSC, SSC: "Better dead than smeg."
Arnold Judas Rimmer, BSC, SSC: "Better dead than smeg."