MtGox's DEATH - Bitcoin headed towards darkness?

[daserpent1]

Great news!   

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?

 Makes sense, hope it doesn't turn out to be a huge ponzi.

I think it will end up that way. Similarly to how Ultimate Bet turned out for online poker (if you were a part of that)

The article that OP FUDster linked to says the have the money and coins:

Roger Ver, who declared last July he had looked at Mt. Gox’s books and determined they were indeed still solvent, said he was still optimistic the exchange would fulfil its obligations.

This was after the USA Gov raped them, Gox still had enough money.
The problems were dealing with the banking industry and very poor coding.

That was last July. After that they have a $75million lawsuit from Coinlab ($38million in "stuck" withdrawals + btc fees accrued would almost enable them to settle the lawsuit).

[BTCisthefuture]

It probably will be ugly in the short term for bitcoin prices ,  but as usual bitcoin should eventually rebound.  View it as a great opportunity to buy if prices keep falling    .  Also a great opportunity for other exchanges to pick up new customers and grow.

[igorr]

Game is over, 

[Labteck]

strange issue/bug
months working good, and now..a "strange and undetermined issue with withdrawls.."...
btc withdrawls process doenst have any mistery..
so
mtx gox is death,out of btc

[Bit_Happy]

strange issue/bug
months working good, and now..a "strange and undetermined issue with withdrawls.."...
btc withdrawls process doenst have any mistery..
so
mtx gox is death,out of btc

Read post #40 (above), Gox is not dead yet, just slowly killing itself.

[davethetrousers]

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.

The sad truth.

[leoragraves666]

Lets just hope that this is the last blow that gox will give to the bitcoin comunity

[flipstyle]

I encourage all to get out of BTC and into fiat now while you can.  


I will gladly serve as the medium to help you facilitate your flee from impending doom...and I'll purchase them at a more-than-generous rate of $150 per BTC.


If that's not compelling enough, please read it back in a 'cash4gold' television announcer voice.  


I'll be awaiting your pm's.

[rammy2k2]

I encourage all to get out of BTC and into fiat now while you can.  


I will gladly serve as the medium to help you facilitate your flee from impending doom...and I'll purchase them at a more-than-generous rate of $150 per BTC.


If that's not compelling enough, please read it back in a 'cash4gold' television announcer voice.  


I'll be awaiting your pm's.

u should get your medicines

[flipstyle]

I encourage all to get out of BTC and into fiat now while you can.  


I will gladly serve as the medium to help you facilitate your flee from impending doom...and I'll purchase them at a more-than-generous rate of $150 per BTC.


If that's not compelling enough, please read it back in a 'cash4gold' television announcer voice.  


I'll be awaiting your pm's.

u should get your medicines

Dat sarcasm.

Right over your head tho.'

[Spam_vt]

I think the question is how has Mt Gox even lasted this long?  They lost $5M of customer funds to the US government last year, so they have to be at least $5M short of paying their customers, right?  What happens when they finally get down to that last (missing) $5M?

[freebitcoinwin]

I think price will fall more on Monday , but anyone who has followed the Bitcoin story over the past year knows it has had many existential crises.
But each time Bitcoin prices have recovered. More than that.

Bitcoin refuses to die because it's not a bubble or a fad. Bitcoin is something new

[FilipZ]

only those panic forcing price down, there is no real fundament, because

 - MTGox is no longer main exchange, they'v held about 20-25% world volume trade before this halt
 - if people on MTgox or elsewhere arer freneticly selling, who is buying? You can only sell if someone buy!!!

so let me gues, this has only technical backround, but histeria all around mostly supported by hype that MTGox is over brougth more than has been expected

MTGOx is not author of BitCoin, there is another 80% of market out there to cover trades with BTC
wake up, world has been changed already, just take a look

check out price, maybe it is time to invest for long run

[2tights]

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?

 Makes sense, hope it doesn't turn out to be a huge ponzi.

I think it will end up that way. Similarly to how Ultimate Bet turned out for online poker (if you were a part of that)

And, now, the only poker I can play is SWC.

[gamersglory]

Sounds like Mt. Gox is trying to manipulate the market so they can Buy/Sell BTC for $500 or under. If BTC was regulated that would be a crime. But it's not since BTC is not regulated. But anyone who uses them as there primary BTC exchange is stupid. Coinbase or bitstamp are legit and I always thought Mt. Gox trading at about $100 more then other exchanges was a red flag. Fells like a huge pyramid scam.     

[Got Bitcoin?]

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.

Well said.

[Phishin_ca]

only those panic forcing price down, there is no real fundament, because

 - MTGox is no longer main exchange, they'v held about 20-25% world volume trade before this halt
 - if people on MTgox or elsewhere arer freneticly selling, who is buying? You can only sell if someone buy!!!

so let me gues, this has only technical backround, but histeria all around mostly supported by hype that MTGox is over brougth more than has been expected

MTGOx is not author of BitCoin, there is another 80% of market out there to cover trades with BTC
wake up, world has been changed already, just take a look

check out price, maybe it is time to invest for long run

It's the people in the other exchanges buying. What you see from gox is the highest bid price that has not been canceled yet. 

[jongameson]

Magic The Gathering means they can do whatever they want with your money because magic    

seriously

they honestly think that just cause you don't understand their card game, means that they can do whatever the hell they want

[Impaler]

Gox collapse for any reason has a negative effect on price purely out of perception because hype and heavily drive BTC exchange rates.

But their are also supply and demand effects too, when (or if) either half of the Gox books get released they can have significant effects if the quantity is not balanced.

If all the USD on Gox is gone but coins are recovered then it will push exchange rates down, if on the other hand coins are unrecoverable but dollars are recovered then it will actually exert upward pressure.  In both cases the recipients of previously Gox-blocked funds are assumed to move them onto other exchanges and even if they do not 'buy' the simple reality is that exchange rates tend towards the bid-sum ask-sum difference so the addition of more funds to one side of the bid or the ask tends to move price even without significant trading volume, people instinctively move all their bids and asks to respond to depths.

Now in all likelihood their will be only partial recover of both BTC and USD on Gox, as it is very hard to imagine that Gox in it's monumental incompetency contained what ever 'contagion' to only one pool.  I don't need to know if the 'contagion' is embezzlement, gambling with house money, or a federal seizure/freeze, all of these scenario's would have spilled over to the other half of the book by now.  The question is what kind of RATIO of ultimate recover will people get.  Right now it looks like the market is betting on a higher recover of USD then BTC.  If this were the case then it would have a downward effect on exchange rates, which matches the general downtrend right now.

[happygeorge]

Great news!  

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?

 Makes sense, hope it doesn't turn out to be a huge ponzi.

I think it will end up that way. Similarly to how Ultimate Bet turned out for online poker (if you were a part of that)

The article that OP FUDster linked to says they have the money and coins:

Roger Ver, who declared last July he had looked at Mt. Gox’s books and determined they were indeed still solvent, said he was still optimistic the exchange would fulfil its obligations.

This was after the USA Gov raped them, Gox still had enough money.*
The problems were dealing with the banking industry and very poor coding.

*Unless "the books were faked"

Didn't anyone else think that that Roger Ver video was 100% proof that everything coming out of MtGox is SCRIPTED!?!?

http://www.youtube.com/watch?v=UP1YsMlrfF0