Coinlab Bringing Bitcoin to Wall Street with MtGox Deal

[Luno]

Thumbs up Holliday, We gonna fight this. The Chinese won't care about such crap either, they have more "human rights" related uses for Bitcoin.

[nikkisnowe]

So when somebody has a mtgox account, what type of bitcoin will they theoretically be holding when the hard fork is created in the very near future.  Do they hold bitcoin within the original chain with the 1mb block size limit?  Or do they theoretically hold bitcoin from the next chain with the higher block size?  Or both?

[Luno]

Thumbs up Holliday, We gonna fight this. The Chinese won't care about such crap either, they have more "human rights" related uses for Bitcoin.

I've never used an exchange period. I certainly don't want fiat, that's why I use Bitcoin to begin with. Let the people who want to move in and out of fiat deal with the repercussions of those actions.

Another thing: Having a central Bitcoin processor on American soil makes everybodys accounts on Mt.Gox at risk of siezeure under the current laws. do you wan't to tkake that risk?`Not much political FUD is needed for a total clamp down to sort out "suspect account holders and their transactions"!

[nikkisnowe]

That's why I qualified my question by asking what you are "theoretically" holding.  Once the hard fork is created and you then want to move bitcoin to a personal wallet, which are you going to get?  Bitcoin from the new or old fork?  Or will account holders suddenly going to have two separate accounts for each fork?

[mccorvic]

Thumbs up Holliday, We gonna fight this. The Chinese won't care about such crap either, they have more "human rights" related uses for Bitcoin.

I've never used an exchange period. I certainly don't want fiat, that's why I use Bitcoin to begin with. Let the people who want to move in and out of fiat deal with the repercussions of those actions.

+1

Mt.Gox != bitcoin

It's like saying bitcoin is over because Mt.Gox was hacked at some point.  If you thought any "decentralized" currency wouldn't have anyone interested in opening up a possibly-regulated side industry then you have only been fooling yourself.

[Piper67]

So when somebody has a mtgox account, what type of bitcoin will they theoretically be holding when the hard fork is created in the very near future.  Do they hold bitcoin within the original chain with the 1mb block size limit?  Or do they theoretically hold bitcoin from the next chain with the higher block size?  Or both?

If all your coins are at MtGox, you aren't holding any bitcoins at all. You are holding a promissory note.

Anybody who keeps all their BTC at MtGox (or any other exchange or intermediary) must do so with full awareness of the risks they're incurring. If you're going to trade, then keep whatever you need to trade there, but with the multiple secure options now available to hold your BTC yourself, there's little excuse for offloading onto an exchange.

[cypherdoc]

i actually have noticed this too; they seem to be all over the place with different projects but nothing substantive yet.

[toddbethell]

  Backroom crony capitalism is what this looks like. The title of this article is a flat out lie, only wishful thinking. Coinlab has no deal with any “Wall Street” firms or major financial institutions.
Mark Karpeles the owner of Mt.Gox DID NOT do this willingling. This is the result of staggering behind the scenes legal and political pressure. Why didn't Coinlab just open their own exchange and compete fairly for the customers IF THEY HAVE SUCH A HOT VALUE PROPOSITION?
Ironically, this demonstrates that Coinlab and their backers don’t fully grasp bitcoins implications. Because thanks to bitcoin, my family, my businesses and customers don't have to sit idly by and be victimized by 'old school' tactics. We will not tolerate being kidnaped and secretly spirited back to economic tyranny. This might give bitcoin a short term boost but it is very bad for liberty in the US. WAKE UP AMERICA, we are being hemmed in, the borders a closing.
“Bitcoin is a global leaderless movement for currency independence and personal liberty" BitcoinATM

Respectfully,
Todd Bethell, CFM, MBA
949-394-5932
toddbethell@BitcoinATM.com
toddbethell@FASTScanning.com

[Luno]

Backroom crony capitalism is what this looks like. The title of this article is a flat out lie, only wishful thinking. Coinlab has no deal with any “Wall Street” firms or major financial institutions.
Mark Karpeles the owner of Mt.Gox DID NOT do this willingling. This is the result of staggering behind the scenes legal and political pressure. Why didn't Coinlab just open their own exchange and compete fairly for the customers IF THEY HAVE SUCH A HOT VALUE PROPOSITION?
Ironically, this demonstrates that Coinlab and their backers don’t fully grasp bitcoins implications. Because thanks to bitcoin, my family, my businesses and customers don't have to sit idly by and be victimized by 'old school' tactics. We will not tolerate being kidnaped and secretly spirited back to economic tyranny. This might give bitcoin a short term boost but it is very bad for liberty in the US. WAKE UP AMERICA, we are being hemmed in, the borders a closing.
“Bitcoin is a global leaderless movement for currency independence and personal liberty" BitcoinATM

Respectfully,
Todd Bethell, CFM, MBA
949-394-5932
toddbethell@BitcoinATM.com
toddbethell@FASTScanning.com

I'd sign that pertition from across the pond.

[nikkisnowe]

Lighten up Francis.  Nobody has to use Mtgox or coin lab if they don't want to.

[jwzguy]

Backroom crony capitalism is what this looks like. The title of this article is a flat out lie, only wishful thinking. Coinlab has no deal with any “Wall Street” firms or major financial institutions.
Mark Karpeles the owner of Mt.Gox DID NOT do this willingling. This is the result of staggering behind the scenes legal and political pressure. Why didn't Coinlab just open their own exchange and compete fairly for the customers IF THEY HAVE SUCH A HOT VALUE PROPOSITION?
Ironically, this demonstrates that Coinlab and their backers don’t fully grasp bitcoins implications. Because thanks to bitcoin, my family, my businesses and customers don't have to sit idly by and be victimized by 'old school' tactics. We will not tolerate being kidnaped and secretly spirited back to economic tyranny. This might give bitcoin a short term boost but it is very bad for liberty in the US. WAKE UP AMERICA, we are being hemmed in, the borders a closing.
“Bitcoin is a global leaderless movement for currency independence and personal liberty" BitcoinATM

Respectfully,
Todd Bethell, CFM, MBA
949-394-5932
toddbethell@BitcoinATM.com
toddbethell@FASTScanning.com

That was a long list of absolutes. You have anything to base them on or are you speculating?

[Peter Lambert]

Wow. Nice going! I wonder how the bears will spin this into a negative. 

Not a bear but this means more regulation.  Buy or sell on mt gox from the u.s. and everything will be reported to the irs.

THe way I see it, there are now, and always will be, too many good ways to get in and out of bitcoin besides MtGox for this to be a problem.

I want there to be a "we report to IRS" official way to get bitcoins, because then there will be someone to fill the role of being an exchange viewed as legitimate, to fulfill the need of providing liquidity and helping the market accurately reflect a market price.  MtGox's current shortcomings (understaffed, no audit, sometimes arbitrary delays and actions with your money, worry about whether they might have assets seized) have a negative effect on the bitcoin economy, we would all benefit for these issues to be resolved, and that can only happen by playing by the rules.

For some people wanting to get into bitcoins, having the transactions reported to the IRS is a good thing. I am thinking of large investment banks or whoever, everything they do is already scrutinized and regulated, so if they can't do a regulated entry into bitcoin then they just don't.

[thest0ckman]

ide rather they stayed in japan. ill be cleaning out mt gox before this deal  is completed.

[Spekulatius]

I dont understand:

1. Do ALL funds of MtGox transactions go through Coinlab then or only deposits/withdrawals from/to US based customers?

2. What does it change for institutional investors?


Could someone enlighten me?

[casascius]

I wish I knew what all of the fuss and naysaying is about.  Conspiracy theories?  I say come on, having some sort of local (US) presence with some real necks on the line is far better than sending money overseas to a company who doesn't feel (or doesn't have time for) any accountability toward me.  I don't know this first hand, but I gather that MtGox is in over their heads and that Mr. Karpeles has no idea how to scale and turn various sensitive procedures he has historically handled by himself into ones that can be delegated to prime-time scale while remaining secure (a problem I'm familiar with), and is relieved to have someone come and take a heavy burden off of him (and pay him well in the process).  If I were Mr. Karpeles, I'd be scared shitless at the prospect that Bitcoin may explode tenfold in the next several months if it were my belief that my trusted four or eight or whatever guys are already swamped with the workload now.  Wanting to give the biggest chunk of my business to someone in a better position to handle it while still being able to lend and benefit from my acquired expertise would be the best move I could possibly think of.

Everything I read about this deal is consistent with what I wish would happen with MtGox.  I view this as entirely positive.  The risk of a problem with MtGox has been the greatest risk in Bitcoin's recent rise to stardom, and this is a plausible (and exciting) fix for that.  There will be more minds at work and more resourceful people risking their assets for this venture, and on the flip side, more talent and more ability to be responsive to problems as they arise, and more ability to deal with the growth.

Note though, I am coming from a perspective of understanding to some extent how business actually works, and not some pie in the sky fantasy of how MtGox should be some sort of anarchist stronghold waging some kind of cyber war with the big bad government and banks.  Those who are saying "this sucks, Bitcoin as we know it is ruined" ought to sell their coins now and get out while they are ahead!

[nikkisnowe]

I wish I knew what all of the fuss and naysaying is about.  Conspiracy theories?  I say come on, having some sort of local (US) presence with some real necks on the line is far better than sending money overseas to a company who doesn't feel (or doesn't have time for) any accountability toward me.  I don't know this first hand, but I gather that MtGox is in over their heads and that Mr. Karpeles has no idea how to scale and turn various sensitive procedures he has historically handled by himself into ones that can be delegated to prime-time scale while remaining secure (a problem I'm familiar with), and is relieved to have someone come and take a heavy burden off of him (and pay him well in the process).  If I were Mr. Karpeles, I'd be scared shitless at the prospect that Bitcoin may explode tenfold in the next several months if it were my belief that my trusted four or eight or whatever guys are already swamped with the workload now.  Wanting to give the biggest chunk of my business to someone in a better position to handle it while still being able to lend and benefit from my acquired expertise would be the best move I could possibly think of.

Everything I read about this deal is consistent with what I wish would happen with MtGox.  I view this as entirely positive.  The risk of a problem with MtGox has been the greatest risk in Bitcoin's recent rise to stardom, and this is a plausible (and exciting) fix for that.  There will be more minds at work and more resourceful people risking their assets for this venture, and on the flip side, more talent and more ability to be responsive to problems as they arise, and more ability to deal with the growth.

Note though, I am coming from a perspective of understanding to some extent how business actually works, and not some pie in the sky fantasy of how MtGox should be some sort of anarchist stronghold waging some kind of cyber war with the big bad government and banks.  Those who are saying "this sucks, Bitcoin as we know it is ruined" ought to sell their coins now and get out while they are ahead!

OMG!  A well thought out and coherent post on the bitcoin forum!  There is hope after all.  While I am a little concerned about this transition with Mtgox (if it were to happen), I fully agree with the the attached post.  If a user feels that this business model undermined how they want to use bitcoin, they don't have to use it.  I think some of the authors of other posts to this thread need to take off the tinfoil hats and come out of the bunker.

[vess]

Hi all,

I'm loving the discussion here, and appreciating the feedback. We got caught blind by the early announcement, so we've been heads-down today, sorry about that. I'll circle back this evening pacific time and try and hit up questions, perhaps in a new thread so that we can edit the head post.

Best,

Peter

[evolve]

I wish I knew what all of the fuss and naysaying is about.

Because not all of us have confidence in CoinLabs security capabilities (whereas post hack MT.Gox is pretty fucking secure now), nor do we know how this will effect liquidity, fees or any number of things.

On top of that, after using a particular service for 2 years, I don't like being moved to a new one (particularly with so many unknowns), much less with little to no notice.

It has nothing to do with conspiracy, it's just bad buisiness to wave off a huge chunk of your customer base.

[vess]

Evolve: you'll be able to use the same gox interface. I agree with you on Gox' proven security, we'll have more to say about that soon.

[casascius]

It has nothing to do with conspiracy, it's just bad buisiness to wave off a huge chunk of your customer base.

It's not bad business to wave off 2 in the bush for 1 in the hand, especially if you know you got your hands full!