People Can’t Convert Their Bitcoin to Cash, and They’re Pissed

[CryptoCurrencyInc.com]

People Can’t Convert Their Bitcoin to Cash, and They’re Pissed

 Users of Mt. Gox, the biggest Bitcoin exchange, say they're being locked out of their accounts

Bitcoin millionaire Charlie Shrem was arrested last week on charges that he used his company, BitInstant, to help an accomplice launder Bitcoins for cash on Silk Road, the vast drug marketplace shuttered by the FBI in October 2013.

That arrest appears to have sparked scrutiny at other Bitcoin exchanges, resulting in massive withdrawal problems, particularly at the Japan-based exchanged, Mt. Gox.

Not surprisingly, people are pissed.

http://www.vocativ.com/02-2014/people-cant-convert-bitcoin-cash-theyre-pissed/

[jongameson]

any true bitcoin user would NEVER sell their bitcoins.  here's why:

u can buy ANYTHING with them.  and it's better than regular money.

why not

why would you ever go back to dollar

is there something you are hiding from us?

etc.. etc..

[AltorXP]

any true bitcoin user would NEVER sell their bitcoins.  here's why:

u can buy ANYTHING with them.  and it's better than regular money.

why not

why would you ever go back to dollar

is there something you are hiding from us?

etc.. etc..

If you need to pay taxes, or need an item right away (cant wait for shipping + no BTC accepting shops around), fiat is necessary

[jongameson]

any true bitcoin user would NEVER sell their bitcoins.  here's why:

u can buy ANYTHING with them.  and it's better than regular money.

why not

why would you ever go back to dollar

is there something you are hiding from us?

etc.. etc..

If you need to pay taxes, or need an item right away (cant wait for shipping + no BTC accepting shops around), fiat is necessary

b-but.. overstock.com..

[exstasie]

Yes, it's a bit of a problem right now because people are using BTC as an investment tool to make some quick money.  In the long run though there shouldn't be as many people attempting to withdraw money for Fiat currency.

[whtchocla7e]

What are people getting BTC for if they gonna convert it back to cash...!? It's pointless.

Gox is doing the Bitcoin community a great service. Good for them.

[Yogafan00000]

You ever hear the term goxed? Its for when you can't your money out.  This is not news.  It's their business model. Why do you think gox price is always 10-20% higher than other exchanges? People think they found an arbitrage opp, but it's really a noob trap. The only way out is to re-buy at the inflated price and transfer to a real exchange.

[benjamindees]

Ironically the actions of US regulators have exposed their own propaganda that Bitcoin is a "convertible virtual currency."

[BADecker]

Well, we seem to need an app that ...

Someone can bring their flash drive to the Mom and Pop store or the Farmer's Market, plug the flash into the proprietor's computer, play on the keyboard for a moment, and pay for the products, right there.

Of course, it would have to be done without revealing any passwords, and without damaging or hacking the computer.

Smart phones of all kinds are a way to do it. But something a bit simpler would be better, as long as it is safe.

Might be that once this starts catching on, all kinds of products can be paid for in Bitcoin, and getting cash out won't be needed or even desired.

[btbrae]

The issue brought up in the article was:

People had become verified and had money (BTC or cash) on the exchange.

Mtgox changes it's policy overnight and requires those of verified status to now become trusted status, by sending notarized documents off to Japan via mail (can cost upto about $150 depending on location).

All funds whether BTC or fiat are locked into the exchange until they receive and process this, which can take several weeks, meaning they have effectively seized client funds in the meantime.

To top this there is a BTC withdrawal issue that is preventing even trusted users to withdraw BTC.

[vadoff]

Mt.Gox has had shitty cash withdraws for many, many months. Hence why the price is always higher on that exchange than any other.

[illpoet]

and they are gonna put litecoin on there honest.

[BADecker]

Actually, the title of this topic should have been, "People Can’t Convert Their Bitcoin to Cash on a Moment's Notice for the Price They Want, and They’re Pissed."

If average people were interested in Bitcoin, they would be ready to convert as they walked down the street. As it is, the interested people are few and far between.

In the U.S. there isn't much problem converting. It all works on supply and demand. The REAL problem is that you won't get the price you were looking for. The higher your price, the longer you might have to wait to get it, and you may never get it.

If you want cash for your bitcoins, 3 fast places you can sell 'em at are:
http://bitcoin-otc.com/ - person-to-person with ratings;
https://www.bitquick.co/ - escrow accounts for safety;
https://localbitcoins.com/ - local, as the site name says, also with ratings.

A fourth place, for special kinds of deals, is https://moneypaktrader.com/.

And there are lots more - the exchanges. You simply need to offer your bitcoins at a lower price than anyone else. Make your price low enough and you will get cash for them very fast.

[Aditya]

Now they can not convert their cash to Bitcoin neither

[banaltcoin]

The issue brought up in the article was:

People had become verified and had money (BTC or cash) on the exchange.

Mtgox changes it's policy overnight and requires those of verified status to now become trusted status, by sending notarized documents off to Japan via mail (can cost upto about $150 depending on location).

All funds whether BTC or fiat are locked into the exchange until they receive and process this, which can take several weeks, meaning they have effectively seized client funds in the meantime.

To top this there is a BTC withdrawal issue that is preventing even trusted users to withdraw BTC.

you sure this is true? not the same as their anouncement said about the "verified" has to become "trusted"