MTGOX to collapse if Japan goes "the Cyprus way" ?

[zeroday]

I suppose that some people are happy to see Cyprus sinking in the financial abyss as BTC price skyrockets and causes megaprofits.
But, did you ever think what would happen to MTGOX if Japan goes the Cyprus way and grab bank deposits to repay its debt?

Some of alarming articles in press.
Forget Cyprus, Japan Is The Real Crisis - Forbes
Financial Ticking Time Bomb 2013, Japan the Greece of Asia
Looming financial crisis in Japan deserves our attention

[John (John K.)]

I thought MT.Gox is migrating to the US now?

[zeroday]

All USD wires are still go to their Japanese account. Just imagine their losses in case of Cyprus scenario.
It's time to think about alternatives. I believe decentralization is the key factor in bitcoin's stability.

[kgo]

The EU forced Cyprus' hand.  Why would Japan force Japan to seize bank funds so that Japan will bailout Japan?

[jl2012]

The EU forced Cyprus' hand.  Why would Japan force Japan to seize bank funds so that Japan will bailout Japan.

Exactly, the Japanese government can print more yen to bailout their banks

[zeroday]

The EU forced Cyprus' hand.  Why would Japan force Japan to seize bank funds so that Japan will bailout Japan.

Just two weeks ago I couldn't imagine that EU can go robbing bank savings. Now I have lost most of my assets. I got a hard lesson.

[klaus]

The EU forced Cyprus' hand.  Why would Japan force Japan to seize bank funds so that Japan will bailout Japan?

so true !

[zeroday]

Foreign capital becomes an easy target for troubled governments.

[allthingsluxury]

The EU forced Cyprus' hand.  Why would Japan force Japan to seize bank funds so that Japan will bailout Japan?

Exactly, Japan has a printing press (Not saying that is a good thing) and cannot be forced by the EU.

[tvbcof]

They are welcome to my zero fiat balance I have with them, and if they take the several BTC in my account, well, 'my bad.'

[TTBit]

Japan can't print up US dollars and EUR, isn't that what MtGox holds?

Japan is a disaster. Check out youtube for Kyle Bass, here is an example: http://www.youtube.com/watch?v=ZY6IEpKRA7Y

[mai77]

lets face it:

if china hits the sell button on their U$ t-bills,  

it's all  being flushed down the tubes anyway  

[Littleshop]

I suppose that some people are happy to see Cyprus sinking in the financial abyss as BTC price skyrockets and causes megaprofits.
But, did you ever think what would happen to MTGOX if Japan goes the Cyprus way and grab bank deposits to repay its debt?

Some of alarming articles in press.
Forget Cyprus, Japan Is The Real Crisis - Forbes
Financial Ticking Time Bomb 2013, Japan the Greece of Asia
Looming financial crisis in Japan deserves our attention

MTGOX would be only partially effected.  They have, at least by fees, half of money in BTC.  If BTC rises and yen drop it is a near wash.  In addition even with hyper-inflation, as long as it less then 10% a month they can even mitigate that with clever financial planning.

Japan has a printing press, Cyprus does not.  They are in very different situations.

[ARapalo]

There really needs to be another exchange site. Bitcoin is not very decentralized if nearly all trading happens at a "centralized" place.

[BitcoinAshley]

Y'all make some good points that Japan (unlike Cyprus) has the power to print more of its own currency. It can't easily be forced by an external entity (Asian Union lol) to rob from its citizens' bank accounts. This means it has a smaller chance of becoming the "next Cyprus."

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But "smaller chance" doesn't mean "no chance." Correct me if I'm wrong, but several other countries (I'm thinking Argentina? Brazil perhaps?) have seized funds from depositors in times of financial crisis. And there ain't no "South American Union" refusing to print more SoAmericos - they just went and done it.

[BitcoinAshley]

There really needs to be another exchange site. Bitcoin is not very decentralized if nearly all trading happens at a "centralized" place.

...

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there are plenty of other exchange sites. sometimes I wish people would use them rather than hanging around bitcointalk complaining about how slow & evil gox is ;-)

[Littleshop]

There really needs to be another exchange site. Bitcoin is not very decentralized if nearly all trading happens at a "centralized" place.

...

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there are plenty of other exchange sites. sometimes I wish people would use them rather than hanging around bitcointalk complaining about how slow & evil gox is ;-)

Really.  And the volume is now there at these other sites for most people. I have not used gox in a year now since somehow my account became unverified and they did not respond to my email. 

[solex]

The EU forced Cyprus' hand.  Why would Japan force Japan to seize bank funds so that Japan will bailout Japan.

Just two weeks ago I couldn't imagine that EU can go robbing bank savings. Now I have lost most of my assets. I got a hard lesson.

zeroday, I have a lot of sympathy for you, especially as I have relatives in Pentakomo, Cyprus, and they are suffering too. Two years ago (before I ever heard of Bitcoin) I advised them to put savings into gold and collect euro banknotes with German, Luxembourg and Finland prefixes. The writing was on the wall then for a banking crisis in Cyprus, but it doesn't seem that they listened.

However, Japan is different, they want to print yen and damn the torpedoes. They will stealth tax their savers through inflation, which could get nasty and damage that country, but businesses will still tick over. I can't see Mt Gox being affected more than any other company in Japan. In fact less, as pointed out already, they must be stacking up the BTC from commissions!

[dserrano5]

I advised them to [...] collect euro banknotes with German, Luxembourg and Finland prefixes.

This makes no sense. All banknotes are equally valid across the whole eurozone. The initial letter in the serial number only indicates which central bank issued the note, nothing else. Plus, there are no banknotes with Luxembourg's prefix (letter R).

[Bitcoinpro]

The EU forced Cyprus' hand.  Why would Japan force Japan to seize bank funds so that Japan will bailout Japan.

Just two weeks ago I couldn't imagine that EU can go robbing bank savings. Now I have lost most of my assets. I got a hard lesson.

as far as we where aware there has been many financial confiscations in the eurozone

like pension fund write downs public servant paycuts and holiday amendments, retirement date changes etc etc etc

in Australia the same changes have been implemented, many newer workers will never have the same benefits public or private as the

exact same workers still employed in similar positions because they are slightly older and financial law changes are not retrospective they only

affect new contracts and or people born after a certain date, Australia has some mineral wealth and even greater oil wealth not to mention

a relatively low population so you can imagine they would not dream of taking bank savings

the government would be overthrown in a matter of days NOT WEEKS and then all the old benefits would be reinstalled because Australia is infact a wealthy country

not to mention the massive oil deposits that are hidden from the mainstream Australian public and exploited by foreign countries