Mt.Gox Meltdown

Well, it seems i was right that the future of mtgox depends on their financial situation.

At last, this whole thing is pure fun (as long you did not had assets @ mtgox).
Its like Breaking Bad for nerds.

As fictional novel everyone had rejected it as not serious and beyond every reality.

The worst is, how much money the people @mtgox, i mean the owner, really lost because all this.

With a little more spending to professional programmer, PR and all that stuff they would have become
really, really rich. Its a money mashine. But i assume they spend to much time to the usual "i am a rich nerd" stuff.

The stupiest of all excuses is the fact/assumption/whatever, that the owner of mtgox was not able to handle the problems.
If you are not able to handle it then get some people who can. The only thing who makes that hard is to have not enough money.
But money is, what mtgox always had. Its a joke.

Mtgox in its core is a story about people who did not spend enough money to hold their money and to make more money.
 


bitcoin is still alive and kicking.
Someone is going to buy at over $570 just 1 minute ago:

localbitcoins20140225.jpg


We have to wait for whole coins exchange system to get out of its infancy.
 
Thorn said:
Mtgox in its core is a story about people who did not spend enough money to hold their money and to make more money.
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We don't know yet. Time will tell, as the story unfolds. There's always a chance they knew exactly what they were doing the entire time.

If that 750,000 turns out to be true, that's more than simple incompetence. You don't lose say $375 million, then just say, "whoops, we didn't realize until just now -- it was malleability in bitcoin, that's it".
 
Kiopa_Matt said:
We don't know yet. Time will tell, as the story unfolds. There's always a chance they knew exactly what they were doing the entire time.

If that 750,000 turns out to be true, that's more than simple incompetence. You don't lose say $375 million, then just say, "whoops, we didn't realize until just now -- it was malleability in bitcoin, that's it".
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I don't even focus on that lost coins. Thats (would be) just the final climax.

Its the time & road between that and a healthy business.
We talk here about month, perhaps even years.

Thats a long time and a long road and all the time they had the chance to turn the boat by throwing manpower & money to it.

Thats where they got lost. Somehwere between april 2013 and today they crossed the PNR. If i should guess its not that long ago that they had a chance. Just my opinion.
 
Kiopa_Matt said:
We don't know yet. Time will tell, as the story unfolds. There's always a chance they knew exactly what they were doing the entire time.

If that 750,000 turns out to be true, that's more than simple incompetence. You don't lose say $375 million, then just say, "whoops, we didn't realize until just now -- it was malleability in bitcoin, that's it".
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It's been over years from what they said, in which case it wasn't $375m they lost (as the value per coin was lower as the original coins were stolen). The gap in their books from the leaked document looks to be ~$20m.

Still not excusable in the slightest to miss it, but in a business that has millions in and out, easy to believe if they weren't accounting for BTC appropriately.
 
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

lol what are they even doing
 
mituozo said:
It's been over years from what they said, in which case it wasn't $375m they lost (as the value per coin was lower as the original coins were stolen). The gap in their books from the leaked document looks to be ~$20m.

Still not excusable in the slightest to miss it, but in a business that has millions in and out, easy to believe if they weren't accounting for BTC appropriately.
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Ok, true enough. Regardless of dollar amount though, if that 750k loss turns out to be true, then MtGox are straight up thieves and con artists, and there's not really an excuse they can give to make me think otherwise. Losing over 6% of all BTC in circulation is more than an accidental "whoops", or a slight oversight.
 
mikeshinobi said:
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

lol what are they even doing
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Statement doesn't even make sense
 
Kiopa_Matt said:
Ok, true enough. Regardless of dollar amount though, if that 750k loss turns out to be true, then MtGox are straight up thieves and con artists, and there's not really an excuse they can give to make me think otherwise. Losing over 6% of all BTC in circulation is more than an accidental "whoops", or a slight oversight.
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But Lukep says bitcoin is going to be the next reserve currency within 5 years and this is NOTHING BUT GOOD NEWS FOR HIM because he can buy more cheap coins.

It's not like an exchanger collapsing will taint the image of bitcoin to the average person or anything like that.
 
Classic fear and greed. It may get way oversold, as stocks did in 2008-2009. There were some wonderful buys when things looked really grim.

When people are screaming for the exits and wringing their hands in disgust, that is sometimes the time to buy.

I think bitcoin has value no matter what and that the small float makes it attractive. I think it will stabalize at some point and there will be a swift move up. I don't know where that point is.

Anything under 200 would appear to be a good buy. This is the kind of shakeup you dream about if you missed the boat before. Companies are accepting bitcoin for payment, that is the main point. It will find stability, the market indicates it must. The bigger the companies are that accept bitcoins, the more you have to believe will make sure there is stability, and liquidity.
 
Dumbass said:
Companies are accepting bitcoin for payment, that is the main point.
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No it isn't.

If Ebay started accepting Bitcoin tomrrow, that alone is not going to convince everyone to convert all of their fiat into Bitcoin, especially when they can still pay with card or Paypal.
Pay with Paypal and your transaction is covered, pay with Bitcoin and if you get screwed, so be it. LOL!! Come on.
 
swiftmoney said:
Pay with Paypal and your transaction is covered, pay with Bitcoin and if you get screwed, so be it. LOL!! Come on.
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This is another thing Lukep doesn't cover with his over optimistic nonsense outlook of bitcoin; there is no incentive for the consumer to switch to Bitcoin. Consumers can't charge it back like a normal Internet transaction. To top it all off, the consumer needs to deal with incompetent exchangers and take care not to accidentally delete their e-wallet. Basically everything about bitcoin is totally cumbersome for the end user, making it extremely unattractive.

It's great for merchants, but without consumer adoption it's going to go no where fast.
 
If that scribd doc is close to accurate and 87% of their insolvency is in missing coins ($372M at $500/coin valuation/$372M + $55M in cash insolvencies), then it's in Mtgox's best interest for the price of coins to crash, reduces their liability immensely for every $100 it drops on other exchanges. As long as they sold enough missing coins elsewhere to cover that $55M plus leave enough liquidity to buy back in before the next bubble. PIM indeed.

Watching the money trail on this one is going to be fascinating.

Edit: And mega LOL at asking other coiners to drop $105M worth into a hole that just lost $400M+ worth. Amazeballs.
 
dmnEPC said:
Exchanges are only to be used for short term transactions. You buy your bitcoins and transfer them to a private wallet that you and only you control. There is zero reason to trust an exchange beyond facilitating a trade. Bitcoin has not been hacked, only a shady exchange, which has deep roots in the Magic the Gathering crowd.
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That's another thing I don't understand about these crypt ceeker currencies. Who just leaves their coins in an exchange? Isn't the whole point to transfer them to your own wallet and back them up and shit?
 
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