Mt.Gox SCAM? $38million disappeared. Large sums affected.

[Its About Sharing]

Seems like MtGox is the "Lehman Brothers" of the bitcoin world.
My analysis points out that BTC/USD might crash down to $100

Your startpoint breaks the prior uptrend.
So many ways to draw a chart.
Essentially, it is a toss up, no pun.

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[Sonny]

This is a classic PONZI scheme.  Don't listen to these idiots on this forum pumping the shit out of bitcoin.  Google "pump and dump". Realistically you are talking about cyber money. You may as well kiss your money goodbye.  Why the f- would the winklevoss guys come out and say they own a grip of bitcoin.... So the rest of you morons buy buy buy and drive the price to 1200.  I feel bad for all of you that put your savings and hard earned money into Monopoly money.  It will collapse soon.  And guess who won't have a bitcoin in their wallet ---- you guesses it... The winklevoss twins, laughing all the way to the bank with your money.  Any website that used to be for trading magic cards is definently a scam!

Hey, donate2me, why all of your posts (6 up till now) are all saying bitcoin is ponzi?
Seems like it is the only thing you want to do with this account...

[bryant.coleman]

There seems to be some sort of good news... BTC is back up to $875 from $820-825 levels.

[Sonny]

I don't really understand why mtgox price go down significantly...

People knew their USD withdrawal would get stuck, but they still want to sell all their bitcoin on mtgox?

[FandangledGizmo]

Seems like MtGox is the "Lehman Brothers" of the bitcoin world.
My analysis points out that BTC/USD might crash down to $100

Is this your same genius 'analysis' that helped you decide Bitcoin was a Ponzi scheme & that we'd be better off with a government issued asset backed currency.

The market price of each certificate will be the function of the underlying asset and the trustworthyness of the issuer.

So, all the downsides of both currency and barter, and the upsides of neither.  Like I said, look into Ripple.

Yes why not cap the limit at 21 million, pretend we got intrinsic value and reward early adaptors for selling to greater fools in the ponzi scheme.
After all it's safer to pay 1000$ for 1/21 millionth of a ponzi, then to pay 0$ for a blank sheet of paper that could be used to sign a contract for gold, stocks or real estate.

My eyesight is not great, but I can see you a mile away...

[Honeypot]

People doing the 'analysis' should remember the environment and public attention to crypto is vastly different than previous cycles. Whether this means a greater drop (regulations and possible 'illegalization') or higher 'stable price' for bitcoin is up in the air - but I am optimistic about the prices and believe it will remain stable above at least 500 long term until the next big push.

Although crashing to 100 would give a great chance to gobble up some cheap coins

[bryant.coleman]

I don't really understand why mtgox price go down significantly...

People knew their USD withdrawal would get stuck, but they still want to sell all their bitcoin on mtgox?

Lack of demand. New buyers are too scared to buy BTC.

[Sonny]

I don't really understand why mtgox price go down significantly...

People knew their USD withdrawal would get stuck, but they still want to sell all their bitcoin on mtgox?

Lack of demand. New buyers are too scared to buy BTC.

But, why is there demand in the past months, when price was always $100+ higher in mtgox?

[igorr]

I don't really understand why mtgox price go down significantly...

People knew their USD withdrawal would get stuck, but they still want to sell all their bitcoin on mtgox?

Check this thread, everything will be clear.

https://bitcointalk.org/index.php?topic=420005.0 and this  https://bitcointalk.org/index.php?topic=400001.0

mining hardware manufacturers, have no more interest to invest in Bitcoin, and here is the end !!!


MtGox has lost credibility, or at least exchange office does not follow the price at MtGox,
because in November and December of 2013 years, the price MtGox exchange office was allowed to rise without real money. (at push-button up) (great deception)
Now as we can see, MtGox is in big trouble about withdraw money, It is so logical and clearly.

[Phinnaeus Gage]

Good news! Mt Gox just processed $2,069,500 of the $38M they hadn't processed earlier: 41,390 (BADTX) x 50 (decrease in exchange rate since last cal. for the $38M fig.) = $2,069,500.

[Abdussamad]

It's like 2013 all over again...

[murraypaul]

Mtgox can't stop withdrawals as and when they wish. It is our coins! We decide when to withdraw. 

Unfortunately the reality is that they aren't your coins, because you don't control the wallet they are stored in.
You gave Bitcoins to MtGox, they gave you an IOU in return.
You were trusting them to honor that IOU, and therefore valued it the same as the Bitcoins you transferred to them.
That may have been a mistake.

[cypherdoc]

I don't really understand why mtgox price go down significantly...

People knew their USD withdrawal would get stuck, but they still want to sell all their bitcoin on mtgox?

Only to BUY THEM BACK.

[benjyz]

I think exchanges should post collateral / make their balances partly public through HD of other means. It's probably not that hard to do. Every exchange with closed books would then suffer from less confidence. This would be much more efficient than any local regulation.

I have no idea about their intentions. But it is very easy to see that technically they are not up to the ask. Just a couple of examples:

* use of SQL. the use of standard databases does not make much sense. SQL lets you do row selections on large tables. an exchange is not just a random large table. if even you hand optimize SQL you don't really know what you're doing.

* use of HTTP. GET/POST'ing orders is pretty inefficient. why would use want to use HTTP? there is this thing called the internet where we have TCP/IP. HTTP does not allow for the complex interaction between nodes that is needed (heartbeating as a basic example).

* the API. terrible design.

noted, the same applies for all major exchanges at the moment, but the others seem to have at least a rough idea what they are doing in terms of software engineering. it looks like MtGox doesn't even have proper test procedures. not even speaking about complex race conditions and latency issues. I haven't studied it, but I'm sure most exchanges can be attacked/gamed, not speaking of outright hacks. I would assume exchanges are a high value targets for blackhats. Wasn't there also the claim that MtGox withholds 30-50M$ from some past issue?

[Xenoph0bia]

I don't really understand why mtgox price go down significantly...

People knew their USD withdrawal would get stuck, but they still want to sell all their bitcoin on mtgox?

Lack of demand. New buyers are too scared to buy BTC.

But, why is there demand in the past months, when price was always $100+ higher in mtgox?

It was possible to withdraw BTC out of Mt.Gox in the past

[smoothie]

I don't really understand why mtgox price go down significantly...

People knew their USD withdrawal would get stuck, but they still want to sell all their bitcoin on mtgox?

Only to BUY THEM BACK.

Lol yup it is an interesting situation. Can't get fiat out nor bitcoin. Luckily for me I have $0.01 on there. 

[DubFX]

You really think bitcoin could crash to 100$? Or just rumors and panic again?
Don't use mtgox thought!!!!

[jubalix]

I am almost sure Gox is fractional reserve in BTC and FIAT.

I feel something has to give here, and once this is sorted out, it will be the next impetus to an evaluation even like what happened after SR1 went down.

So cheap coins then explosion in price.

You just can't have problems sending BTC, thats the whole point of the protocol.

Unless you don't have BTC to send.

[jubalix]

I think exchanges should post collateral / make their balances partly public through HD of other means. It's probably not that hard to do. Every exchange with closed books would then suffer from less confidence. This would be much more efficient than any local regulation.

I have no idea about their intentions. But it is very easy to see that technically they are not up to the ask. Just a couple of examples:

* use of SQL. the use of standard databases does not make much sense. SQL lets you do row selections on large tables. an exchange is not just a random large table. if even you hand optimize SQL you don't really know what you're doing.

* use of HTTP. GET/POST'ing orders is pretty inefficient. why would use want to use HTTP? there is this thing called the internet where we have TCP/IP. HTTP does not allow for the complex interaction between nodes that is needed (heartbeating as a basic example).

* the API. terrible design.

noted, the same applies for all major exchanges at the moment, but the others seem to have at least a rough idea what they are doing in terms of software engineering. it looks like MtGox doesn't even have proper test procedures. not even speaking about complex race conditions and latency issues. I haven't studied it, but I'm sure most exchanges can be attacked/gamed, not speaking of outright hacks. I would assume exchanges are a high value targets for blackhats. Wasn't there also the claim that MtGox withholds 30-50M$ from some past issue?

this is a very good idea, there is not reason why an exchange could not publish all BTC received and thats verifiable. This would attract a lot more confidence to that exchange and thus volume.

then the next side would be how much fiat they hold but thats easier to lie about. The question is how much BTC/FIAT is off the market but on the exchange ready to go.

[Come-from-Beyond]

is this the reason for the drop in price?

Yes - Ethereum.