Why Mt. Gox, the World’s First Bitcoin Exchange, is Dying
1–10 of 43 posts
Re: Why Mt. Gox, the World’s First Bitcoin Exchange, is Dying
#2Looks like a Bank Run? Bitcoin exchanges that engage in some kind of fractional scheme need insurance coverage. I don't know if Mt Gox is doing that, but it kind of smells like they don't have enough BTC on hand to allow withdrawls.
On the upside, Bitcoin seems like a perfect laboratory to re-run the experiments in banking leading up to the 1930s when you know, the "communist" FDR imposed banking regulations which are still hated today by some. :)
Re: Why Mt. Gox, the World’s First Bitcoin Exchange, is Dying
#3Looks like a Bank Run? Bitcoin exchanges that engage in some kind of fractional scheme need insurance coverage. I don't know if Mt Gox is doing that, but it kind of smells like they don't have enough BTC on hand to allow withdrawls. On the upside, Bitcoin seems like a perfect laboratory to re-run the experiments in banking leading up to the 1930s when you know, the "communist" FDR imposed banking regulations which ar…
How would they not have enough BTC on hand? It's not like they loan it out like banks.
Re: Why Mt. Gox, the World’s First Bitcoin Exchange, is Dying
#4Looks like a Bank Run? Bitcoin exchanges that engage in some kind of fractional scheme need insurance coverage. I don't know if Mt Gox is doing that, but it kind of smells like they don't have enough BTC on hand to allow withdrawls. On the upside, Bitcoin seems like a perfect laboratory to re-run the experiments in banking leading up to the 1930s when you know, the "communist" FDR imposed banking regulations which ar…
How would they not have enough BTC on hand? It's not like they loan it out like banks.
By taking it.
Re: Why Mt. Gox, the World’s First Bitcoin Exchange, is Dying
#5Because it's Magic the Gathering Online eXchange.
Re: Why Mt. Gox, the World’s First Bitcoin Exchange, is Dying
#6Looks like a Bank Run? Bitcoin exchanges that engage in some kind of fractional scheme need insurance coverage. I don't know if Mt Gox is doing that, but it kind of smells like they don't have enough BTC on hand to allow withdrawls. On the upside, Bitcoin seems like a perfect laboratory to re-run the experiments in banking leading up to the 1930s when you know, the "communist" FDR imposed banking regulations which ar…
How would they not have enough BTC on hand? It's not like they loan it out like banks.
Some could have been stolen from a compromised server.
Re: Why Mt. Gox, the World’s First Bitcoin Exchange, is Dying
#7I never had any problems withdrawing money, but I live in Japan
Re: Why Mt. Gox, the World’s First Bitcoin Exchange, is Dying
#8There's plenty to warrant suspicion, but it turns out there is a credible explanation for the seize-up in BTC payouts being a technical problem that will take some time to resolve:
http://www.reddit.com/r/Bitcoin/comments/1x93tf/some_irc_cha...
This analysis describes a Bitcoin transactional defect of which I wasn't previously aware. However, from a vaguely-similar much-smaller incident involving the default client, I know that having a local wallet confused about what prior transactions are truly spendable can take significant time and custom effort to unwind.
Re: Why Mt. Gox, the World’s First Bitcoin Exchange, is Dying
#9This is FUD. As incredible as it seems, MtGox's problems are, in fact, technical. And it was quite a relief to realize this.
Also, there is minimal danger of a bank run. MtGox makes a profit off of every transaction. Therefore they control more BTC than users are able to deposit. Hence, since Magical Tux (the owner) is motivated not to go to jail, he will not run off with people's BTC.
For anyone who wants the truth, rather than speculation, here it is: http://www.reddit.com/r/Bitcoin/comments/1x93tf/some_irc_cha...
Re: Why Mt. Gox, the World’s First Bitcoin Exchange, is Dying
#10Looks like a Bank Run? Bitcoin exchanges that engage in some kind of fractional scheme need insurance coverage. I don't know if Mt Gox is doing that, but it kind of smells like they don't have enough BTC on hand to allow withdrawls. On the upside, Bitcoin seems like a perfect laboratory to re-run the experiments in banking leading up to the 1930s when you know, the "communist" FDR imposed banking regulations which ar…
How would they not have enough BTC on hand? It's not like they loan it out like banks.
> The US Department of Homeland Security and the Secret Service seized three accounts linked to Gox containing more than $5m. As research from The Genesis Block shows, the executed seizure warrant was dated 19th June, the day before Gox announced it would halt dollar withdrawals.
Not to mention they're a huge hacking target.