Earlier quoted context omitted.
I'm with you on the first part, but I have a hard time believing that this was solely broken programming and ignorance. I think we are well into the territory of negligence, and I could well believe that we will eventually discover the sort of dubious behavior and/or outright fraud that accompany accidental ponzi schemes.
You may change your mind after reading some of his blog posts: http://blog.magicaltux.net/2008/11/30/eve-online-pathfinder/ http://blog.magicaltux.net/2010/06/27/php-can-do-anything-wh...
MtGox.com is offline
511–520 of 553 posts
Re: MtGox.com is offline
#512Earlier quoted context omitted.
There doesn't seem to be any information about trading cards at that link. If you are making the claim that they lacked the technical foundations to generate a major currency exchange, then I daresay you are correct. That does not necessarily follow from formerly being a trading card business. Is it Magic the Gathering specifically that you object to? If they were in the Hanafuda card business would they have had a b…
If you are making the claim that they lacked the technical foundations to generate a major currency exchange, then I daresay you are correct. Yes. Is it Magic the Gathering specifically that you object to? Clearly not. People are only pointing to the likely incompetence of someone who starts off writing a card exchange (unimportant) and switches to a currency exchange (important and hard), says 'PHP can do anything',…
Mark Karpeles did not write Mtgox, Jed McCaleb (edonkey2000, Ripple) did. I've been emailing with McCaleb (see https://en.wikipedia.org/wiki/Talk:Mt.Gox#Possible_citogenes... ) and so far my best reconstruction of the early history of the mtgox.com domain name is as follows:
> In late 2006, programmer Jed McCaleb (eDonkey2000, Overnet, Ripple), thought of building a website for users of the _Magic The Gathering Online_ service to let them trade cards like stocks. In January 2007, he purchased the domain name 'mtgox.com', short for "'Magic The Gathering Online' eXchange"; sometime around late 2007, the service went live for around 3 months before McCaleb moved on to other projects. He reused the domain name in 2009 to advertise his card game _The Far Wilds_. In July 2010, he read about Bitcoin on Slashdot, and decided that the nascent Bitcoin community needed an exchange for trading Bitcoin & regular currencies; a week later, after writing an exchange website, he launched it while reusing the mtgox.com domain name. [etc etc]
Re: MtGox.com is offline
#513Earlier quoted context omitted.
The part of "running a SSH server that you wrote in PHP in production" that is scary is not the "in PHP" part. It's the "that you wrote" part. No matter what language you write it in, you are going to mess something up. The OpenSSH guys have messed up working a lot smarter and more diligently and with more time than you have.
This is so very true, OpenSSH is probably one of the most secure pieces of software around. It has extremely high value to attackers, yet has had extremely few remote security holes in its lifetime. They've invested years and many talented people in developing such a piece of software. If you want to write your own ssh server in php, you should probably consider your motivation and how you can re-use their code or op…
Its kinda hard to disagree with that conclusion.
Re: MtGox.com is offline
#514Earlier quoted context omitted.
Most people who've been around bitcointalk and bitcoin-otc know not to use MtGox since circa 2011 when their stunning incompetence was at it's height. Sadly there were plenty of media shill articles when Btc skyrocketed to $1,000 last year who were promoting them as the "Biggest Bitcoin exchange" without pointing people to relevant bitcointalk threads on what a nightmare that site has been over the years. If you read…
Oh lawdy [1]: Of course normal frameworks are a no-go. Using someone else’s framework will make your world slightly better, but until you create your own full framework, you won’t understand what I mean. The next step is to build applications with your framework. The kind of applications that will change the world... Should have tagged the post with NIH. [1] http://blog.magicaltux.net/2009/09/19/striving-for-a-better…
http://blog.magicaltux.net/2009/12/22/incorporation-in-japan...
If he was not dealing with other people's real money and data this experimentation and shotgun approach would be fine.
Re: MtGox.com is offline
#515Earlier quoted context omitted.
> Exchanges aren't investments; users aren't promised returns, they in fact expect that the chance of loss is high. They expect the chance of trading losses is high, they don't expect that the loss of balances on account is high (in fact, they are generally promised that, except for specified transaction fees, such accounts will retain their value.) There's a slight difference from what goes on in a traditional Ponzi…
That's not a slight difference, that's a fundamental difference. Lacking a promise of a positive return and lacking a fake investment opportunity, no fraud can be classified as a Ponzi; it's simply fraud or theft. There's absolutely nothing Ponzi like about this Gox situation; nothing. Ponzi's require both of those elements, they are the definition of what a Ponzi is. From Google: Ponzi Scheme: a form of fraud in whi…
Once they severely restricted/shut off withdrawals, they were no longer an "exchange". People were no longer investing in Bitcoins facilitated through an exchange, they were investing in the exchange allowing withdrawals and making good on the promised high Bitcoin to USD values or low USD to Bitcoin values. All the time they were telling people it was a technical problem and they would make good on transactions. Given how insolvent they were, this had probably been going on for a significant amount of time or they just never had intentions of making good. Allowing deposits to continue despite the issues they faced was unscrupulous, and I believe it was likely a way for them to try to collect capital to make good on the "top of the line" and "bottom of the barrel" exchange rates that they had promised their customers, which they simply could never fulfill.
Re: MtGox.com is offline
#516Earlier quoted context omitted.
1) A "bank run" on an exchange should be a non event because all exchanges should have the money they claim to have. 2) I'm skeptical of any exchange I don't know a lot about 3) Is there another cryptocurrency that offers significant additional features over BTC? Right now I don't see it. In the future there is certain to be. Tomorrow Mt Gox's failure should hit the mainstream press. There should be very harsh covera…
> 3) Is there another cryptocurrency that offers significant additional features over BTC? Right now I don't see it. In the future there is certain to be. I think doge offers more future liquidity (because they're allowing inflation) and a more user-friendly community. Is that enough to matter? I don't know.
Things I am looking out for:
a) Contributes some sort of additional benefit on the part of the computations being performed, e.g. seti@home b) Backed by a physical medium such as gold c) Very anonymous as opposed to public
I think the future will involve many different crypto currencies. There could be compelling business reasons for a company to issue their own currencies.
For example, lets presume there is a cloud AI brain. You can send inquiries to this brain for complex questions you have. This AI is composed of the miners. Like BTC you either can purchase to "AI Coins" or mine them.
In this respect the crypto currency could create its own self-sustaining entity with a real value. Yet it would not really owned by anyone. If the currency got too expensive, at some point you could have a competitor and the prices would balance out.
Speculators can fuck themselves, in the literal sense. For example, the dot com/domain name market had a handful of people buy up most of the good generic domain names. They parked them and earned pay per click revenue from Google and Yahoo. Google realized how much traffic was coming from "direct navigation" and basically put an end to type in domain traffic (and arguably consumers were trained to go elsewhere.) Had these domain names been developed in to good businesses rather than sat on, we would actually expect to see a good web site behind (insert keyword).com. When Google started hijacking the browser there would have been many more complainers.
BTC and other crypto-currencies right now have an outsized proportion of speculators verses those who are actually doing things. When prices rise, you get rich just by buying. Why devote any of your work to anything other than buying?
Right now the best thing that can happen for BTC and crypto-currency is for people to build software that uses it and actually works. Marketing is just painting the same thing over in a new color.
Re: MtGox.com is offline
#517Earlier quoted context omitted.
TARP was only about 250 billion and it's been repaid with interest. It was neither stolen nor given. If you're including various stabilization programs the Fed put into place, that money was neither stolen nor given either. It was created using sovereign authority that is granted to the Federal Reserve by law. The citizens of the US would be immensely poorer today if the world financial system had collapsed into a se…
>The citizens of the US would be immensely poorer today if the world financial system had collapsed into a second Great Depression. If the only alternative to bailing out the banks was sitting on our hands, then yes. That's like arguing that if the fire department hadn't put the house fire out with Gatorade, the entire block would have burned. >If you're including various stabilization programs the Fed put into place…
I just don't think it's accurate to characterize the bailouts as theft (or "rape", as has another commenter), and I don't think inaction (and the subsequent collapse of the financial system) was an acceptable option considering the massive pain and privation it would have caused.
Re: MtGox.com is offline
#518And there's a new statement on the website: Dear MtGox Customers, In the event 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
No doubt written from an undisclosed beach.
Re: MtGox.com is offline
#519Earlier quoted context omitted.
What do you mean gone? What happened to the hard drives with the wallet numbers and private keys? How hard is it to transfer them via the blockchain transactions to their owners?
> What happened to the hard drives with the wallet numbers and private keys? The hard drives are still there, but the wallets are empty. The coins were stolen.
Re: MtGox.com is offline
#520Did anyone have a look at the (html) source? What does this comment mean? Maybe mtgox has been acquired by another party?
If you request https://www.mtgox.com/foobar, it doesn't redirect but displays the same 404.
If you request https://www.mtgox.com/data/mtgox_off/img/mtgox_logo_mail.png, it loads the image, so that's definitely a valid directory, and the shorter version (https://www.mtgox.com/img/mtgox_logo_mail.png) is probably just being rewritten.
I wonder if there's anything accessible in the / or /data dirs.