The Bitfinex situation - how long will it take?

[Wind_FURY]

~ Gox did not have that much power and influence on the market. It was enjoying the reputation of being the first Bitcoin exchange. That is all.~

well you are misinformed my friend.
Gox was mostly enjoying being the biggest exchange out there while controlling the majority of trade volume. there either were no coinbase, bitstamp, bitfinex, even btc-e or they were too small to matter. when you control the >75% of the market (ie gox) you can easily change the price.
but when you control <10% (ie bitfinex) you can push the price high as much as you want but nobody cares.

You are right. I looked into it and studied the history of MtGox and I was surprised to discover that they had a bot pump the price to more than $1000 from fake buy orders. They called the bot Willy according to Coindesk http://www.coindesk.com/bot-named-willy-did-mt-goxs-automated-trading-pump-bitcoin-price/

[1715077236]

1715077236

[Shiroslullaby]

Don't hold your breath.  

Anyone who gets back any of their lost money should consider themselves very lucky.

[lumeire]

BitFinex has a better management than Gox, so it's not likely to repeat. Remember when it was hacked some time in the past? They were able to give back their customers the stolen funds and they've quite recovered from that event and stood strong.

Finex becoming Gox is just the worst case scenario.

[Okurkabinladin]

BitFinex has a better management than Gox, so it's not likely to repeat. Remember when it was hacked some time in the past? They were able to give back their customers the stolen funds and they've quite recovered from that event and stood strong.

Finex becoming Gox is just the worst case scenario.

Well, Gox had quite good management. To the point those guys stole all the funds and almost got away with it too  Karpeles is alot of things, but being incompetent is not one of them.

Finex already had trouble with withdrawal/funds in the past, it was also raided and did not refund its users 100%. Not great. In more developed market, that company would be under already.

[1Referee]

Karpeles is alot of things, but being incompetent is not one of them.

If you can't run an exchange in a professional manner, where you take care of people's funds properly (without getting tempted to run off), then you're exactly that, incompetent. This dude didn't need to run off with people's funds as he had like 100,000BTC (fully belonging to him) in reserves already. If he kept running his exchange properly, it would still be the major exchange, which as result would have gained him a good number of coins throughout the years. People are extremely short term minded as they are willing to take any risk to achieve something, that they in potential could have reached after a certain number of years.

[arbitrage001]

Poll result is depressing.

[york780]

Poll result is depressing.

No.
Its a good thing.
Cut out the rotten exchanges.
Bitfinex needs to die, its corrupted by greed.
Greed= short term
Added value+transparency = long term
We dont need Bitfinex, let them rot.

[BitcoinHodler]

Poll result is depressing.

bah, who cares about POLL results. people don't vote what they think can happen but they mostly vote what they wish would happen.

Cut out the rotten exchanges.
Bitfinex needs to die, its corrupted by greed.
Greed= short term
Added value+transparency = long term
We dont need Bitfinex, let them rot.

yeah, down with bitfinex
i am too lazy right now or i would have made a mime with that yellow drawing thingy holding up a matchstick shouting.
edit: yaay i did it anyways

[Wind_FURY]

BitFinex has a better management than Gox, so it's not likely to repeat. Remember when it was hacked some time in the past? They were able to give back their customers the stolen funds and they've quite recovered from that event and stood strong.

Finex becoming Gox is just the worst case scenario.

Well, Gox had quite good management. To the point those guys stole all the funds and almost got away with it too   Karpeles is alot of things, but being incompetent is not one of them.

No. If he had then MtGox should still be the no.1 exchange in Bitcoin. Bitcoin was stolen from his exchange and they deployed a bot to pump the price. Does that show you good managment?

Finex already had trouble with withdrawal/funds in the past, it was also raided and did not refund its users 100%. Not great. In more developed market, that company would be under already.

The story is not over yet. Give it a little more time before making the mistake of judging it. I admit, I also made that mistake.

[KennyR]

Don't hold your breath.  

Anyone who gets back any of their lost money should consider themselves very lucky.

Right now only luck can help them. Regaining what they lost is something very big, because the reputation they gained as a trusted platform and in the top list won't be retained back. Possibly it won't be sought out in a short time of within a week or too, I believe it would take months to solve the issue.

[BitHodler]

Don't hold your breath.  

Anyone who gets back any of their lost money should consider themselves very lucky.

Right now only luck can help them. Regaining what they lost is something very big, because the reputation they gained as a trusted platform and in the top list won't be retained back. Possibly it won't be sought out in a short time of within a week or too, I believe it would take months to solve the issue.

Bitfinex's first plan is to look for banks that are willing to do business with them, without actually registering their activities in a proper manner. It's something they till now haven't done.

If they took the effort to do so, this problem wouldn't exist, but there surely must be a reason for not doing so. It's Bitfinex after all. Nothing happens without a reason.

If they want to continue along the same lines, they must find a bank from some sort of an island to be willing to offer their services to Bitfinex, but without them willing to register themselves properly, I even can't see this become reality.

[Przemax]

I've picked the even later option.
 
In my opinion the sittuation might be too handy for anyone that was willing to manipulate the price and create the whole issue with the bank withdrawals. Yes I think it was a cospiracy.

So if the manipulation was involving making the bitcoin price stagnate, it will take at least the time since August. In August the price seems to be the most radically changing so the buying phase for someone imho must end by then.

Probably the buying phase for someone that had manipulate the price will come after some big dump in price. There will be some further bad news and gossips involved here.

In my opinion the pain and fear of the bitfinex users must reach some peak here, either by time or panic buy/sell.

Thats just my 2 cents.

[Silberman]

We cannot actually say when it will come to the end, we dont know what caused the whole suspension of wire transactions ( deposits/withdrawals ).
There is a massive panic ongoing on the bitfinex exchange, people are getting rid of the funds stored in there, just to buy overvalued bitcoin ( overvalued, because the price on bitfinex is much higher than on other exchanges ) and send it to the other wallet.

It is understandable, because cryptocurrency community does not want to risk and hold their funds on the exchange which is suddenly suspending wire transactions without any important reason!
It may turn out, that this incident is pretty much the end of bitfinex.

It is only overvalued if the situation on Bitfinex gets solved somehow but I don’t think that is likely so if you need to pay a premium to get your money out of there then it is worth to do and just lose some money instead of losing it all and never see it again.

[BitMaxz]

We cannot actually say when it will come to the end, we dont know what caused the whole suspension of wire transactions ( deposits/withdrawals ).
There is a massive panic ongoing on the bitfinex exchange, people are getting rid of the funds stored in there, just to buy overvalued bitcoin ( overvalued, because the price on bitfinex is much higher than on other exchanges ) and send it to the other wallet.

It is understandable, because cryptocurrency community does not want to risk and hold their funds on the exchange which is suddenly suspending wire transactions without any important reason!
It may turn out, that this incident is pretty much the end of bitfinex.

It is only overvalued if the situation on Bitfinex gets solved somehow but I don’ think that is likely so if you need to pay a premium to get your money out of there then it is worth to do and just lose some money instead of losing it all and never see it again.

I thought that they already fix the issue about the suspension of wire transaction.. they are still updating their blog but i can not seen that they are solved the issue about wire transfer..
Well about too much price increase i think it can not affect the whole price or default price of bitcoin ..  and this is just a bubble this is just what i think..

[pitham1]

Why isn't Bitfinex experiencing a run on its bitcoins? People could just convert their fiat which is 'stuck' into bitcoins and withdraw them.
Are people greedy because the exchange rates at Bitfinex are higher?

[zby]

I suspect that some bfx proprietors or employees have Taiwanese bank accounts and are not really interested in resolving the problem quickly.

[gentlemand]

Anyone who gets back any of their lost money should consider themselves very lucky.

They can get their crypto back right now, but they will lose a percentage because of the premium.

Poll result is depressing.

No.
Its a good thing.
Cut out the rotten exchanges.
Bitfinex needs to die, its corrupted by greed.
Greed= short term
Added value+transparency = long term
We dont need Bitfinex, let them rot.

Agreed. Bitfinex is the final hangover from Bitcoin's fucked up early days. It's incredible that it still managed to stay on top for so long considering what a shit hole it is. They should do an orderly shut down and leave but they won't do that. They're working themselves up to a final violation.

[BitHodler]

I suspect that some bfx proprietors or employees have Taiwanese bank accounts and are not really interested in resolving the problem quickly.

Bitfinex could have sorted these withdrawal issues already, but there is something that makes them not willing to take any quick actions.

It could very well be that this is being used as excuse to not let people cash out the funds that they gained back from Bitfinex very recently. It at least wouldn't surprise me.

Bitfinex has been acting very shady several times now. The longer this withdrawal issue drags on, the more people will use their fiat and convert it to whatever crypto and cash it all out.