MtGox's DEATH - Bitcoin headed towards darkness?

[daserpent1]

As we all know by now, mtgox is in big trouble. They say they will release a new statement on 10th Feb 2014, which most likely would be "we have sent all the stuck bitcoins back, but fiat withdrawals still won't go through".

What if, none of the future btc withdrawals don't work either? And mtgox finally admits to going belly up, like 2 months later?

What would happen when mtgox finally admits that it is in big trouble and can't serve us anymore? Would the bitcoin prices fall sharply AGAIN? Or would the prices hold steady (because its not like all exchanges will shutdown).

What I personally think will happen on Monday is, mtgox will release the "stuck" bitcoins back to the owners, and the respective owners will again try to withdraw all their btc holdings because not a lot of people trust mtgox anymore. And what happens when mtgox again receives thousands of withdrawal requests on monday? The coins get "stuck" again (i.e. if it indeed is a technical issue)!

Do you really think that they can fix a REAL technical issue in just 2 days ? If they were that competent, wouldn't they have fixed the technical glitch a long time ago?

I have some money held up with mtgox, and I really do hope that i do get my coins back, but I like to live in the reality. I know, there is something BIG going on inside mtgox - Either they are keeping the coins for themselves as part of an elaborate ponzi scheme OR they are in big trouble with the authorities and hence, can't release any coins until the authorities let them do so.

Either way, this DOES NOT LOOK GOOD. Like many will agree, its best that mtgox pays us back what they owe us and shuts down for good. Because all these price fluctuations caused by the mtgox uncertainity is making many new small-time investors lose their life savings.

Coindesk Article on Mtgox death :: http://www.coindesk.com/mt-gox-first-bitcoin-exchange-dead/

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[polarhei]

For the big operation, It usually cannot be fully solved within 2 days, but providing the progression about following up.

Real players do not select mtgox as their primary, they possibly select bitstamp or campbx for fiat withdrawal.

[daserpent1]

For the big operation, It usually cannot be fully solved within 2 days, but providing the progression about following up.

Real players do not select mtgox as their primary, they possibly select bitstamp or campbx for fiat withdrawal.

But bitstamp doesn't let people from all around the world withdraw fiat, right? Unlike mtgox did.

[MicroGuy]

There is some speculation that MtGox does not have adequate BTC on hand to cover a significant volume of bitcoin wallet withdrawals.

By halting withdrawals it buys them time to (among other things) either; a.) increase their bitcoin balance, b.) come up with another excuse not to give customers access to their bitcoins, or c.) hope that this 2-day delay will somehow slow the bleeding once they re-enable withdrawals on Monday.  

[Lauraportuguesa]

Hello dear friend.
The MtGox will not die, will be paid all know what I'm saying.
within a few days months we will see the price of bitcoin in new maximums.
what is happening is that the surest is all being paid when the price of BTC enter the house of 500 usd per bitcoin.

when they saw that I was right can donate
Bitcoin
1HqqFQAfC5ph366Egvp3ZYryWDJgxqxJ7c

[daserpent1]

This is some speculation that MtGox does not have adequate BTC on hand to cover a significant volume of bitcoin wallet withdrawals.

By halting withdrawals it buys them time to (among other things) either; a.) increase their bitcoin balance, b.) come up with another excuse not to give customers access to their bitcoins, or c.) hope that this 2-day delay will somehow slow the bleeding once they re-enable withdrawals on Monday.  

That is what most of us are worried about.

IF mtgox does declare that it cannot continue operations, does that mean all our money goes down with them? Or would they be professional enough to give us back what they owe us?

[wbaw]

It is actually a technical glitch. A serious one, but I don't think they've run out of bitcoins, they've just been forced to stop withdrawals until they fix their software, it was doing withdrawals wrong & some people may have exploited that. They probably lost some bitcoins as a result, hopefully they can afford to replace them.

It's not going to kill bitcoin, there are plenty of other exchanges. If you put your life savings into bitcoin then you're a fool. It's gambling, only bet money you can afford to lose.

[TheRandomGuy]

I doubt this is going to be the death of bitcoin. It's just a hiccup.

[keithers]

If Gox implodes, which looks very possible, we would get another massive sell off and then stabilize at about $100-$125 less than we are at right now (IMO). I think we will overcome that but it will take some time

[Mivexil]

Do you really think that they can fix a REAL technical issue in just 2 days ?

If they try hard enough, sure. Of course, it would have to be an actual technical issue, and not "we've been martingaling on PrimeDice and emm, you know guys..." one.

[MicroGuy]

This is some speculation that MtGox does not have adequate BTC on hand to cover a significant volume of bitcoin wallet withdrawals.

By halting withdrawals it buys them time to (among other things) either; a.) increase their bitcoin balance, b.) come up with another excuse not to give customers access to their bitcoins, or c.) hope that this 2-day delay will somehow slow the bleeding once they re-enable withdrawals on Monday.  

That is what most of us are worried about.

IF mtgox does declare that it cannot continue operations, does that mean all our money goes down with them? Or would they be professional enough to give us back what they owe us?

If they are in fact misleading customers, I wouldn't expect them to suddenly "do the right thing".

But if this is in fact a technical glitch, the balances are likely secure.

[zenid]

This is some speculation that MtGox does not have adequate BTC on hand to cover a significant volume of bitcoin wallet withdrawals.

In other words, they're trying to be a bank! - Only holding a percentage of the actual currency they've been given by their account-holders, then presumably trading it elsewhere for commission.

This is exactly what bitcoin was designed to avoid: central control and exploitation by some self-appointed middlemen. MT Gox could vanish and overnight and a dozen exchanges will spring up to respond to demand for BTC/cash conversion services. BTC cannot be controlled and monopolised by a single entity - it's that way by design.

I've never used MT Gox and never will. They're one of many.

[daserpent1]

It is actually a technical glitch. A serious one, but I don't think they've run out of bitcoins, they've just been forced to stop withdrawals until they fix their software, it was doing withdrawals wrong & some people may have exploited that. They probably lost some bitcoins as a result, hopefully they can afford to replace them.

It's not going to kill bitcoin, there are plenty of other exchanges. If you put your life savings into bitcoin then you're a fool. It's gambling, only bet money you can afford to lose.

Again, Do you really think they can fix a REAL technical issue in just 2 days? If they were this competent, wouldn't they have fixed it a long time ago?

[FandangledGizmo]

You are obviously being a big troll lately...

You've already said...

I hold no bitcoins or any other coin for that matter anymore. I sold all the coins and wanna get out of this f**ked up scene.... And i really think its not going good the way it is going.

https://bitcointalk.org/index.php?topic=453230.msg4997987#msg4997987


If you don't actually own any Bitcoins and don't want to be in the f**ked scene, then stop being involved by posting FUD.
Unless you're trying to drive down the price, all your latest posts seem to suggest that.

[Nathonas]

What's with all the sensationalist posts? *Bitcoin headed towards darkness* give me a break. Bitcoin has gotten through more serious issues (Remember the December China crash?) with no problem. One exchange having technical difficulties is not going to bring down Bitcoin, and I doubt it will cause the "DEATH" of the exchange itself.

[BittBurger]

OP:  Do you *really* think Bitcoin is as simple, small, and centralized as MtGox ?

Seriously?   This is the basic concept behind Bitcoin.   That no single entity could ever "bring it down".

I would encourage you to do some extensive research on what Bitcoin is.   And decentralized networks.

Gox could completely die, Bitstamp could completely die, and Coinbase could completely die tomorrow.

Bitcoin would not die.

I highly encourage you to listen to this speech on decentralized networks, and why they never die when one "branch" is cut off.

Very important speech. Everyone should listen to it:

https://soundcloud.com/mindtomatter/e39-2-the-starfish-and-the
(skip forward to 11:00)

[BitCoinDream]

USD did NOT get vanished when Lehman Brothers & Meryl Lych failed. BTC will be affected but wont be vanished when Mt.Gox wont be anymore. It is written in the code.

[BitEscrow]

 The Mt.Gox is surely causing the price to bounce more than normal. It is giving people who already hold currency the chills and some newbies sccurying to new exchanges to buy up.

[Benson Samuel]

FUD.

Wait for what has to happen, to happen. You are posting this across multiple threads as well.

[EskimoBob]

MtGox became a epic joke long time ago and only greed and stupidity forced people to trade there or send any coin/fiat into this black hole.
MtGox has been operating as one big mixer - closed system with no exit for fiat or BTC.

Interesting where did the coin go and if coin is really gone, how did they manage to lose it?