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Author Topic: MtGox creating money?  (Read 2149 times)
im3w1l
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July 07, 2011, 10:21:18 PM
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I know there are some people here that are VERY opposed to the current bank system. How do you feel about MtGox creating redeemable codes. Do you think the will become to bitcoins, what notes were to gold?
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naturallaw
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July 07, 2011, 10:25:02 PM
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What codes, where are you getting this from?
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July 07, 2011, 10:53:57 PM
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All Mt. Gox redeem codes are backed by coins or actual deposited money.

So they're not created out of thin air.

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nazgulnarsil
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July 07, 2011, 10:57:58 PM
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according to mtgox.

FRB is fairly easy when people aren't paying attention.
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July 07, 2011, 11:11:00 PM
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That's very true - if it was my exchange, I'd pull half the cash and invest in TBills or a money market fund Cheesy
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July 08, 2011, 04:47:31 PM
 #6

according to mtgox.

FRB is fairly easy when people aren't paying attention.
Yes. Ask Federal Prisoner #61727-054.

Money transfer firms in Japan are required to have funds on deposit equal to all claims from their customers. Diverting customer cash is a criminal offense. Whether Mt. Gox is in compliance is not clear, but whether they can go to jail for stealing customer money is.
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July 08, 2011, 05:01:43 PM
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With the volatility and potential growth in BTC, it would be INSANE to do any kind of FRB, because there's an extremely good chance that whatever you invested the MtGox money in will be left in the dust by the return on BTC itself.
Using redeem codes, on the other hand, is an excellent idea, because it means transfers/sales are not limited by the 1block/10min chain, and there are no transfer fees at all to move BTC around between customers.

sadpandatech
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July 08, 2011, 07:25:37 PM
 #8

according to mtgox.

FRB is fairly easy when people aren't paying attention.
Yes. Ask Federal Prisoner #61727-054.

Money transfer firms in Japan are required to have funds on deposit equal to all claims from their customers. Diverting customer cash is a criminal offense. Whether Mt. Gox is in compliance is not clear, but whether they can go to jail for stealing customer money is.

Being that Mt Gox is now owned in majority by a business that is registered to conduct such financial transactions in Japan it is a good bet that they are in compliance.  They've far more to risk having gov involved than to just do things on the up and up.. imho

If you're not excited by the idea of being an early adopter 'now', then you should come back in three or four years and either tell us "Told you it'd never work!" or join what should, by then, be a much more stable and easier-to-use system. - GA
It is being worked on by smart people. -DamienBlack
naturallaw
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July 08, 2011, 07:26:18 PM
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Personally, I'd be more concerned about Mt Gox rigging the market than FRB. If you wanted to be corrupt wouldn't that be much easier? Just saying.
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July 08, 2011, 07:27:49 PM
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That's very true - if it was my exchange, I'd pull half the cash and invest in TBills or a money market fund Cheesy

And then the day you do that your bills that offer MAX return of like 5% p.a. get downgraded, and you lose 30-50% on your initial investment. Tbills is propably the worst kind of investment unless you invest just after a downgrade (and even then its still just a few %, better just use a normal savings account).

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July 09, 2011, 04:41:08 PM
 #11

according to mtgox.

FRB is fairly easy when people aren't paying attention.
Yes. Ask Federal Prisoner #61727-054.

Money transfer firms in Japan are required to have funds on deposit equal to all claims from their customers. Diverting customer cash is a criminal offense. Whether Mt. Gox is in compliance is not clear, but whether they can go to jail for stealing customer money is.

Being that Mt Gox is now owned in majority by a business that is registered to conduct such financial transactions in Japan it is a good bet that they are in compliance.  They've far more to risk having gov involved than to just do things on the up and up.. imho

Show us their entry in the List of licensed (registered) Financial Institutions for Japan, or retract that claim.
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July 09, 2011, 11:52:35 PM
 #12

according to mtgox.

FRB is fairly easy when people aren't paying attention.
Yes. Ask Federal Prisoner #61727-054.

Money transfer firms in Japan are required to have funds on deposit equal to all claims from their customers. Diverting customer cash is a criminal offense. Whether Mt. Gox is in compliance is not clear, but whether they can go to jail for stealing customer money is.

Being that Mt Gox is now owned in majority by a business that is registered to conduct such financial transactions in Japan it is a good bet that they are in compliance.  They've far more to risk having gov involved than to just do things on the up and up.. imho

Show us their entry in the List of licensed (registered) Financial Institutions for Japan, or retract that claim.

Aye, I've no choice but to retract my statement. I was unable to find them in any English letters form on the FSA site.  I further apologize for stating such without first checking. Not a habit I like to make..

If you're not excited by the idea of being an early adopter 'now', then you should come back in three or four years and either tell us "Told you it'd never work!" or join what should, by then, be a much more stable and easier-to-use system. - GA
It is being worked on by smart people. -DamienBlack
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July 10, 2011, 12:35:25 AM
 #13

I know there are some people here that are VERY opposed to the current bank system. How do you feel about MtGox creating redeemable codes. Do you think the will become to bitcoins, what notes were to gold?

The money is subtracted from your account once you create the code (or note).

The only entity that could do fractional banking here would be mtgox, and he can do that very well without any codes (the two balances of the users are purely virtual, we have no proof of either USD or BTC being held by mtgox in the same amount as the total balances. I'm not saying he isn't, just that we dont have proof)

A good redeemable bill would be a bitbill (http://bitbills.com), btw, because you can check the backing bitcoins' existance at any time. Search for easycoin by Atlas here in the forums for more ideas.

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July 10, 2011, 06:14:04 AM
 #14

Redeemable codes are fine. It's the irredeemable ones you should worry about.

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im3w1l
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July 10, 2011, 02:06:49 PM
 #15

All Mt. Gox redeem codes are backed by coins or actual deposited money.

So they're not created out of thin air.

For now

Personally, I'd be more concerned about Mt Gox rigging the market than FRB. If you wanted to be corrupt wouldn't that be much easier? Just saying.
IANAL, but market rigging should be illegal while FRB should not?

naturallaw
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July 11, 2011, 12:26:14 PM
 #16

IANAL, but market rigging should be illegal while FRB should not?

Both are a type of fraud in my opinion, just saying which would be less risky? Probably rigging the market.
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