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Author Topic: MtGox VS Bank bailouts.  (Read 47 times)
tony1996
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June 05, 2018, 12:12:10 PM
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I was just thinking of the 2008 bank bailouts, then I thought of the money lost in MtGox. I'm curious what you think. The bank bailouts seem to have cost us (citizens of USA) 21 billion dollars. MtGox lost stole 240 million dollar's worth of bitcoin (valued at $1200 each). Is bitcoin really that much riskier than cash? I would say no.
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ivrynx
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June 05, 2018, 12:36:52 PM
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Since things like that are happening, both are full of risk, but banks is still much riskier than invedting in bitcoin, what had happened with Mt.Gox is an isolated case, since not all exchnages are like them and still a lot ate profiting from exchanges. In this case we cannot bring the past back, but what we can do is to protect our assets, instead of puttin our money on exchanges, place them on your wallet, download it or you can use a hard wallet,  for banks, to protrct our investment, place it in a secure deposit in which there is an insurance, some banks put insurance below 500k deposits, if ever the bank closes, they will still give you your money back, within that range.
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June 05, 2018, 01:28:01 PM
 #3

I was just thinking of the 2008 bank bailouts, then I thought of the money lost in MtGox. I'm curious what you think. The bank bailouts seem to have cost us (citizens of USA) 21 billion dollars. MtGox lost stole 240 million dollar's worth of bitcoin (valued at $1200 each). Is bitcoin really that much riskier than cash? I would say no.

Finally this Mt gox confirmed like he is going to repay to the people who ever in their site. I do not believe that is reason he had exchanged the bitcoins he has mate. There are plenty of fake news also we are seeing in the market everyday.
That is the another reason for price dump you find due to the market fluctuations with the newbie panic sellings mate.
You should not consider both the bank and Mt gox in the same scale I believe banks better than MT gox.

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jseverson
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June 05, 2018, 03:03:54 PM
 #4

I don't think that argument has much to do with Bitcoin vs cash at all. Mt Gox was basically a failed company and/or a probable scam that just happened to deal with Bitcoin. Similarly, the bailouts was more of a problem with the system in place than cash itself (though it could be construed that cash is the system).

I would rather not comment on the concept of bailouts or its effects, but it's a preventive measure for an economic collapse. Bitcoin has no such fail-safe in place, so it could be said that it's riskier in this scenario. One could argue that Bitcoin, being decentralized and working under different rules, would never be in a situation where it will need a bailout though.

mrtryonebiggums
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June 05, 2018, 04:16:31 PM
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Mt. Gox vs Big Bank bailouts have absolutely nothing to do with how risky Bitcoin is. That is a completely different situation that will never happen again due to us having many more exchanges. Bitcoin is risky as an investment, whatever happened with the exchange was external to how Bitcoin operates. But what is dumb about all of this is how the taxpayers gotta eat the bank buyout yet for the crypto exchange, who eats it? Exactly it isn't the banks but the people who took the risk on crypto. Hopefully one day this can change and crypto can be backed by the government, but somehow I highly doubt that will happen. Roll Eyes

Hydrogen
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June 05, 2018, 11:16:11 PM
 #6

Bank bailouts are still occurring. The US federal reserve is bailing out european banks as we speak. I think that people forget MtGox stands for "Magic The Gathering Online Exchange". MtGox was originally built as a very small, niche, financial platform for magic the gathering card game. It was never designed nor intended to function as the major hub of finance it became with the rise of bitcoin. And so it was never secured or hardened enough from a software/hardware perspective to serve its intended function.

One interesting point about bank bailouts is, I remember some bank stocks being valued as low as $0.01 during the crisis. Those banks were expected to declare bankruptcy. After the bailout bill was announced bank stocks worth $0.01 before the announcement were worth $3.00 within a few weeks for a whopping 300 times increase in value. Maybe that's an interesting observation from an investment perspective. If a person invested $1,000 in that bank stock worth $0.01 they could have had $300,000 within a few weeks.

Also that type of performance pre-bailout to post-bailout easily rivals bitcoin price appreciation which could imply such growth may be sustainable over the long term.

There are lots of interesting perspectives on the 08' financial crisis/bank bailout. Its a question of which would people be interested in hearing?

Chachen19
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June 06, 2018, 02:36:16 AM
 #7

I was just thinking of the 2008 bank bailouts, then I thought of the money lost in MtGox. I'm curious what you think. The bank bailouts seem to have cost us (citizens of USA) 21 billion dollars. MtGox lost stole 240 million dollar's worth of bitcoin (valued at $1200 each). Is bitcoin really that much riskier than cash? I would say no.
In the rescue of bank bad debts, the traditional Bail-out solution is to help the debtor's bank happy, the new solution Bail-in is pulling the creditors of the bank into the unlucky cycle. Bail-out is financed by finance from the shipping industry, that is, everyone who slaps water from a boat to sink from a sink, because the sinking boat is all gone.
ShitTL
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June 06, 2018, 03:02:37 AM
 #8

I was just thinking of the 2008 bank bailouts, then I thought of the money lost in MtGox. I'm curious what you think. The bank bailouts seem to have cost us (citizens of USA) 21 billion dollars. MtGox lost stole 240 million dollar's worth of bitcoin (valued at $1200 each). Is bitcoin really that much riskier than cash? I would say no.
mt gox was go vao too past but when to go to cò lại cho người đã mất một nỗi buồn nhẹ nhàng Mt. Gox sure you will always have a local address in your calendar and progress of the Bitcoin when a time is a transaction of the latest transaction, but reo back in the hard as the user like.
Deubila
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August 05, 2018, 06:37:57 AM
 #9

Mt. Gox vs Big Bank bailouts have absolutely nothing to do with how risky Bitcoin is. That is a completely different situation that will never happen again due to us having many more exchanges. Bitcoin is risky as an investment, whatever happened with the exchange was external to how Bitcoin operates. But what is dumb about all of this is how the taxpayers gotta eat the bank buyout yet for the crypto exchange, who eats it? Exactly it isn't the banks but the people who took the risk on crypto. Hopefully one day this can change and crypto can be backed by the government, but somehow I highly doubt that will happen. Roll Eyes
It is not known how it works, as it applies to the electronics market. What are the benefits to us? When there is a government presence or tax collection there is some discomfort. It is not practical to have the supervision and profit sharing of investors. New measures need to be taken to attract investors, so the future of the financial market is sustainable. Smiley
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