Gox blowing up? $820 vs $1020

[masterluc]

Largest growing spread in history on low volatility http://www.coinometrics.com/bitcoin/dispersion

[31337157]

I've been around for a while and here is what I think is happening...

Mt. Gox rallies precedes bigger rallies.  Why?  Pretend you are a newb.  In fact, pretend you are Rosanne Barr and you want to buy bitcoins.  You type 'buy bitcoins' in Google.  Mt. Gox is 2nd in the search results.  Users click it and see Mt. Gox has an impressive front page.  'As seen on CNN!' 'Biggest exchange!' As a newb you will put money on Gox and buy at market prices.  Newbs are piling in and they pile into Mt. Gox first.  The end.

I'm sorry, but this is just not the case. Nothing is leaving mtgox anymore, fiat has had some movement in EUR, but nothing in the US. There is a thread covering the current hold up of over 10,000 coins in service discussion, some of which were the finals bits from clearance of my mtgox account and it took 5 days and multiple messages from support to see any sort of movement. Read about the 400+ broken transactions here:

https://bitcointalk.org/index.php?topic=431117.0

This is not a "newb rally", this is a slow and painful death that needs to be sped up. Mtgox is a cancer to the bitcoin community, especially if it represents what all of the newbs will be using as a first impression!

[obitoo]

I've been around for a while and here is what I think is happening...

Mt. Gox rallies precedes bigger rallies.  Why?  Pretend you are a newb.  In fact, pretend you are Rosanne Barr and you want to buy bitcoins.  You type 'buy bitcoins' in Google.  Mt. Gox is 2nd in the search results.  Users click it and see Mt. Gox has an impressive front page.  'As seen on CNN!' 'Biggest exchange!' As a newb you will put money on Gox and buy at market prices.  Newbs are piling in and they pile into Mt. Gox first.  The end.

I'm sorry, but this is just not the case. Nothing is leaving mtgox anymore, fiat has had some movement in EUR, but nothing in the US. There is a thread covering the current hold up of over 10,000 coins in service discussion, some of which were the finals bits from clearance of my mtgox account and it took 5 days and multiple messages from support to see any sort of movement. Read about the 400+ broken transactions here:

https://bitcointalk.org/index.php?topic=431117.0

This is not a "newb rally", this is a slow and painful death that needs to be sped up. Mtgox is a cancer to the bitcoin community, especially if it represents what all of the newbs will be using as a first impression!

So you are saying the price of bitcoins is going up on Mt. Gox because users can't withdraw their bitcoins?  Huh?  Buying bitcoins makes the price go up.  Withdrawing bitcoins does not affect the price.

So you are saying this "newb rally" is actually a slow and painful death?  Suppose we sped up Mt. Gox's death like you said.  Are you saying that we need a super rally at Mt. Gox for that to happen?  That seems like a paradox to me.

The way i see it is - if you've got fiat on Gox but you know you can't get it out, whats your only alternative? Buy coin and transfer off.  So a lot of people are doing just that, taking the hit to get off of Gox but driving Gox coin price/demand up in the process.  The more recent fear of not being able to transfer Btc either is accelerating this.

(sorry if this has already been stated)

[finder_keeper]

What about getting JPY out of Gox? I read that this was the only way to get fiat out.

Of course if that were true, people with both Japanese and US/European bank accounts would be exploiting that arbitrage channel, so it's probably not true anymore.

[faceofhearts]

What about getting JPY out of Gox? I read that this was the only way to get fiat out.

Of course if that were true, people with both Japanese and US/European bank accounts would be exploiting that arbitrage channel, so it's probably not true anymore.

Expat in Japan here.  I've just sent 0.1 BTC to my Mt Gox account to test a JPY domestic withdrawal.  Will post results here.

[eiskalt]

bitstamp blowing up?

http://www.reddit.com/r/Bitcoin/comments/1w83db/weve_shut_down_the_buy_option_at_the_bitcoin_atm/

Unfortunately, due to a massive delay in processing at Bitstamp, and ZERO response to repeated contact requests from anyone in management or customer service there, we've had to shut down the buying option (...)

[kkaspar]

What if..
.. MtGox got hacked like a year ago, with BTC stolen, and they were too chicken to announce it, instead thinking: "Well, we make good money don't we.. maybe if we just keep going, then maybe we could earn back the money we lost."
But after a year, everything has just went over their heads and they are insolvent.

That is the only reason that I can imagine of. Other then the theory that Gox is operated by an flock of drunken emus.

[humanitee]

What if..
.. MtGox got hacked like a year ago, with BTC stolen, and they were too chicken to announce it, instead thinking: "Well, we make good money don't we.. maybe if we just keep going, then maybe we could earn back the money we lost."
But after a year, everything has just went over their heads and they are insolvent.

That is the only reason that I can imagine of. Other then the theory that Gox is operated by an flock of drunken emus.

Demonstrably true.

[Anon136]

I was a noob once and within 2 hours of learning about bitcoin I figured out that there were many exchanges, and the price difference between all of them. I even downloaded an app to keep track of them all for possible arbitrage opportunities.  I cannot imagine that the people investing $100k+ are that stupid.

having money doesn't correlate well with intelligence.  postiively perhaps, but if so, just barely.

unfortunately we live in a society where state ass kissing ability is more advantageous than intelligence as a means to that end.

[Peter Lambert]

I was a noob once and within 2 hours of learning about bitcoin I figured out that there were many exchanges, and the price difference between all of them. I even downloaded an app to keep track of them all for possible arbitrage opportunities.  I cannot imagine that the people investing $100k+ are that stupid.

One of the first websites one should look at is bitcoincharts.com, and if you go there it is easy to see that the price at MtGox is way higher than anywhere else. If you want to buy bitcoins, wouldn't you start at one of the cheaper exchanges? Clearly MtGox is overcharging by about 20%.

[keithers]

Yes, this is truly the end of bitcoin. People are currently in denial.

I am already praying to the Emperor, I hope they leave me a place in the Yasukuni Shrine.

BANZAAI!!!

Bitcoin's last breath!

http://www.youtube.com/watch?v=C2-vYrMd4kY&list=PL221DD22024D77390&index=4

This is sarcasm right?  Gox is turning into monopoly money until people can actually get money off of that site in a timely manner.  Failure of Gox in no way means the failure of bitcoin in general...

[keithers]

If the Feds are really going to be dumping all of the confiscated bitcoins from the silk road, then everyone should encourage them to do it on gox, because then the government will never get their money...LOL!!

[TERA]

I found this on reddit. A tradingview chart of the mtgox spread:

https://www.tradingview.com/e/OPX4Xw9D/

[Peter Lambert]

If the Feds are really going to be dumping all of the confiscated bitcoins from the silk road, then everyone should encourage them to do it on gox, because then the government will never get their money...LOL!!

While that would be funny, The fedgov already has a website which they use to auction of seized properties. That is where they will sell off the bitcoins.

[porcupine87]

Is there any data of the amount of bitcoins which are deposited on Mt Gox? I wonder who deposited bitcoins on Gox the last 6 months. Anyway, I would say, this is not a good sign, when some big player try to cash out...

[Shogen]

If the Feds are really going to be dumping all of the confiscated bitcoins from the silk road, then everyone should encourage them to do it on gox, because then the government will never get their money...LOL!!

This. 

[glendall]

Slightly off topic, but what the heck is even happening with Gox? How could they be this locked up for so long? 

I guess they are waiting for paper work to be processed that the gov either can not process quickly or is in no rush to.  I mean for all the profits Gox was making they sure don't seem to be handling the problems well at all. I honestly don't remember how long it has been since you could withdraw... 8 months?

[Anon136]

Slightly off topic, but what the heck is even happening with Gox? How could they be this locked up for so long? 

I guess they are waiting for paper work to be processed that the gov either can not process quickly or is in no rush to.  I mean for all the profits Gox was making they sure don't seem to be handling the problems well at all. I honestly don't remember how long it has been since you could withdraw... 8 months?

they had several million stolen from them by the us government.

[calian]

Page 3 and no link to this?
http://thegoxreport.com/

[HairyMaclairy]

So Gox is only 16k btc in the hole plus unknown quantity of fiat (probably a similar amount).

So some nice white knight should just come along and throw $30 million USD + at Gox and make the problems all go away.