Can MtGox ever fail - does it not still have more BTC for sale than any other??

[davidpbrown]

MtGox obviously taking flax for its abliity to communicate information and its price looks substaintially down from other exchanges. However, I wonder that http://bitcoinity.org/markets/ suggests that the Ask/ForSale side of the valley, is still suggesting 19.42k BTC avaliable before price hits $1500. Is the price down because everyone in MtGox is moving back to fiat in the hope they can withdraw that better than BTC?

If sellers are not withdrawing, is MtGox not still likely to survive as a big player?

Also, if peer to peer exchanges come alive, will there be any future for ye olde exchanges or will the cliff between fiat and crypto always require those?

[FPCN]

Many people don't think mtgox can survive 2014

[Cloudpost]

I think that mtgox is dead, even if it solves all the problems (which is nearly impossible) noone will touch that piece of crap for sure.

[seriouscoin]

I think that mtgox is dead, even if it solves all the problems (which is nearly impossible) noone will touch that piece of crap for sure.

You would be surprised.....

Infact someone just posted asking about fiat deposit to Gox because he wants to buy btc at low price!

Yeah i know....

[FPCN]

I think that mtgox is dead, even if it solves all the problems (which is nearly impossible) noone will touch that piece of crap for sure.

You would be surprised.....

Infact someone just posted asking about fiat deposit to Gox because he wants to buy btc at low price!

Yeah i know....

People never learn anything from history.

[ineedit]

Mt Gox, is a rehash on the old market maker confidence trick that happens all the time.


Step 1: Offer to buy something at a higher than average price, pay out quickly, build confidence
Step 2: Slow down the payment for the thing being brought, sell some of the things to pay sellers and pay off original stake
Step 3: Claim xyz has happened, gone to hospital, cat's died, tech failure, etc and that you cannot payback now but will when the problem is fixed, out of hospital, etc allowing time for even more funds to flow in and for funds to be sent elsewhere.
Step 4: Bring new staff on board to run the outfit.
Step 5: Offer the things for sale at a lower price than market but delay sending things claiming again a re-occurrence of 'xyz', plus new staff are untrained, illness returned, new cat has kill the dog, etc allowing time for even more funds to flow in and for funds to be sent elsewhere.
Step 6: Put distance between yourself, the sellers, buyers, authorities and let new staff deal with the problems.[/li][/list]

The same trick has been played many, many times and until Step 6 occurs, the confidence trickster can just claim incompetence, lack of business knowledge, pet shop owner, etc and get away with it.

[slowlyslowly]

agree with ineedit - it happens all the time. i was in the construction industry for a while letting contracts in various countries and a variation of the mtgox scenario often happened there.

You want to build a building. Your tender a contract and you expect most bids to be say $10 million. Most bids do but one comes in at $8 million so you grab it thinking its a great deal.

Building work starts and the contractor gets about 60% of the work done and then says he is stopping. (only then do you realise he just bid low to get some work/cashflow to survive until a more lucrative contract came along). At that stage with delayed progress payments he has got about 40% of the $8 million ie $3.2 million.

However even though the job is 70% finished when you tender for people to finish it they want about 60% of the price not 30% and at the $10 million not $8 million rate .

So the project costs you $3.2 million plus $6 million ie $9.2 million. the delays add to the financing costs (say another $1 million) so it cost you $10.2 million to build a $10 million item.

Both contractors are happy and the poor sap that wants the building is burnt. - just as people that have used mtgox have been. 

beware of entering any industry/sector/market  - some players offering services will take you down and profit handsomely doing it.

[davidpbrown]

You want to build a building. Your tender a contract and you expect most bids to be say $10 million. Most bids do but one comes in at $8 million so you grab it thinking its a great deal.

You get what you pay for. Buyer beware. Complaining after the fact as if it's the contractors error, is ridiculous. Some contractors will pitch wide of the make for simpe political reasons, that they don't want the contract but they don't want to loose the potential of future interactions. If you opt for a 20% discount, then you are adopting an obvious risk multiplier.

[hilariousandco]

I think that mtgox is dead, even if it solves all the problems (which is nearly impossible) noone will touch that piece of crap for sure.

Well that's what I've been thinking for ages but it's still going. I don't even understand how it's even managing to stay afloat. Never heard anybody say good things about gox.

[davidpbrown]

Never heard anybody say good things about gox.

They served me well but that was last year.. the only glitch was dumping a transaction to JPY rather than keeping it as GBP.

I wonder they might just seize up and obviously then there is a risk for anyone holding anything there. I don't know, if MtGox is legally bond to return 100% or only as much as they can - fraction to all, in the way that Governments would/will do to fiat ye olde bank savers.

[hilariousandco]

Never heard anybody say good things about gox.

They served me well but that was last year.. the only glitch was dumping a transaction to JPY rather than keeping it as GBP.

I wonder they might just seize up and obviously then there is a risk for anyone holding anything there. I don't know, if MtGox is legally bond to return 100% or only as much as they can - fraction to all, in the way that Governments would/will do to fiat ye olde bank savers.

It would be interesting to see what happens in that situation. I guess there'd just be a lot of lawsuits.