Transferring 25k into Gox to buy at current prices

[DieJohnny]

$300 BTC is mighty appealing............................................ hmmmmmmm

[1714857347]

1714857347

[1714857347]

1714857347

[EuroTrash]

$300 BTC is mighty appealing............................................ hmmmmmmm

Just today a friend of mine who's not into bitcoin saw a graph with the Gox price  and decided to get involved.
His first question was what is the quickest way to get money into MtGox and which currency should he use on MtGox.

Of course I told him to stay away from MtGox.

But if you think you know what you're doing, then suit yourself.

[D05GTO]

Uggg, it's the roach motel of exchanges.  Your money checks in but nothing checks out. LOL

[damnek]

I think it's fine to do this with a small percentage of your total investment in btc. Think of gox IOUs as a stock in the virtual currency space. You wouldn't go all in on just gox IOUs right?

[Ibian]

All signs point to gox being incompetent or fraudulent. Or both. Not a good place to have your money.

[ArticMine]

I would rather open an account with either AvaTrade or Plus500 and go long on the GoxBTC/GoxUSD currency pair. There is a good chance that this trade can be profitable, and one can then get the USD out and trade then for BTC at market through an exchange that is working.

This should be considered a very high risk speculative investment when compared to simply holding BTC. There is an even much higher risk in my opinion with depositing either USD or BTC into MTGox, at this time, with a potentially a much lower return.

Edit: This trade idea will not work for US persons.

[UnDerDoG81]

I say worth the risk. If Gox comes back then we will see $900 on gox minutes/hrs later.

[knightcoin]

also hire a hitman, just in case

[roslinpl]

$300 BTC is mighty appealing............................................ hmmmmmmm

Your greed might be not good in that gox case.

[ArticMine]

I say worth the risk. If Gox comes back then we will see $900 on gox minutes/hrs later.

Yes but the USD are then trapped in MTGox, which is why I suggested the CFD route.

[wbaw]

All signs point to gox being incompetent or fraudulent. Or both. Not a good place to have your money.

Not insolvent though. Seems like a good place to make a quick buck if you can get some money in there before the price corrects. Obviously you'd withdraw your BTC as soon as they allow it.

[fonzie]

But what are you going to do if BTC on Bitstamp crashes below 200$ before your money arrives and Gox is still above 300$???

[Ibian]

All signs point to gox being incompetent or fraudulent. Or both. Not a good place to have your money.

Not insolvent though. Seems like a good place to make a quick buck if you can get some money in there before the price corrects. Obviously you'd withdraw your BTC as soon as they allow it.

Why wouldn't they be? That might be the very reason they are not letting people get their money. Not that their solvency means anything until that changes.

[WompRat]

I would say no, but there could be a reasonable exception if you have contacts in Japan and are familiar with their liquidation practices.  They are going to have some bitcoin whatever happens.  The trick would be to make sure you are first in line to get some should they fail.

[yannis7777]

Incomprehensibly idiotic so please send me your money instead brother. At least there is a good chance it will be used towards a good cause.

[BitChick]

You did not have enough options on the poll for me to pick from.

If you had the option "already a millionaire so 25K really is not that big of a risk" I would say go ahead and give it a try.

Otherwise it seems like a pretty risky move.  It is all about putting faith in Mt. Gox.  Putting faith in Bitcoin is already a bit risky it seems so that just adds another layer of risk on top. 

[WompRat]

Perhaps you could buy then immediately begin legal proceedings for the recovery of your property.

[jamesc760]

Go for it, whatchawaitingfor? Knock yourself out, literally!

DieJohnny, very apt name.

[eldentyrell]

I would rather open an account with either AvaTrade or Plus500 and go long on the GoxBTC/GoxUSD currency pair. There is a good chance that this trade can be profitable, and one can then get the USD out and trade then for BTC at market through an exchange that is working.

First of all, kudos to you for understanding counterparty risk.

However, I don't think this will work.  I checked out both AvaTrade and Plus500 and they close all bitcoin positions monthly, on the same day of the month for all accounts, which almost certainly means that they are putting in a wire transfer request to gox once a month.  If that wire doesn't come back and not enough customers show up in the first week-or-so of next month to offset, they will proceed to screw the previous month's customers for the balance, appealing to force majeure.  I'm pretty sure their risk management strategy here is to pipeline the whole thing and then drag their feet on withdrawals if the pipeline dries up while gox is in no-wire-transfer mode.

It's the Lloyd's reinsurance-to-close scam, writ small.

[chesthing]

This poll is a joke, right?