Why do you panic sell into MtGox manipulation?

[CurbsideProphet]

The people who are panicking right now are the ones that will be complaining about how such a small amount of people own such a large amount of bitcoins.

I appreciate the cheap coins though.

How are you buying those cheap coins though?  It doesn't seem like money is flowing in or out of Gox.  Unless you mean the slight decline it has caused on the other exchanges?

[Nagle]

I assume MtGox has other liabilities that are senior to deposits.

If they're considered a Payment Service Agency under Japanese law, no, they don't. Customer funds belong to the customer. Dipping into them is theft.

[btbrae]

This is getting very ugly very fast, not long ago everybody was prepared to buy the dip. Now it's dipped and people are looking at the Gox price and thinking "Well what if?... ". Gox is a major blight on Bitcoin. And the press haven't really gotten hold of the story yet, probably as it hasn't reached it's conclusion.

[bigasic]

I don't  understand why everyone didn't leave Mt.Gox when they had the chance. Its not like the writing wasn't on the wall. The warning signs were there months before it became a huge issue. Im just glad I bailed when I did. The whole Mt.gox thing has me wondering what the real truth is. Its terribly ovbious that they are in some sort of hot water.

I almost don't have any sympathy for those that are going to (or have) lose their shirts with mt.gox. Most people that are smart would have bailed a long time ago. Does anyone know how many coins they are supposed to have? I agree that once they allow withdrawals, the bear market will just get much worse.

This whole fiasco has hurt bitcoin.

[pleiotropik]

Took my stash out in may, only went back for small transactions. That said, people higher up in the btc community have responded badly to this situation. this problem does not belong exclusively to Gox, it is also a bitcoin foundation crisis.  their silence is hurting the community by the hour.

[FrauHolle]

I don't quite get the gox-is-bad-I-told-ya attitude. The current gox situation is hurting everyone involved in or holding bitcoin, even more so all the fantastic entrepreneurial ideas here. So whatever has been said back then was apparently not loud or clear enough or presented at the wrong channel to prevent the massive damage to the whole system that we're experiencing right now.

[hilariousandco]

I don't quite get the gox-is-bad-I-told-ya attitude. The current gox situation is hurting everyone involved in or holding bitcoin, even more so all the fantastic entrepreneurial ideas here. So whatever has been said back then was apparently not loud or clear enough or presented at the wrong channel to prevent the massive damage to the whole system that we're experiencing right now.

You seem to be new here  . Gox has been operating a shoddy business for as long as I've known about it.

[grifferz]

this problem does not belong exclusively to Gox, it is also a bitcoin foundation crisis.  their silence is hurting the community by the hour.

Given that there's nothing that the foundation can say or do to make MtGox give people their money back, cease operation or resume operation, they are probably feeling that saying something and then having it have no effect is just going to make them look weak.

It's disappointing that things have got this far with Mark Karpeles on the board of the foundation. That does look bad. However, even then, as one of the founders of the organisation they cannot actually dismiss him.

So while the situation sucks all around, the foundation's behaviour is probably the best they can make of it.

[gustav]

someone needs to go to prison over this fiasco! This Karpeles and his friends destoyed capital and ruinined some people i think. He made a damage in the hundrededs of millions with just not halting his tradingengine! He also damaged capital of people who have never been at gox! This guy owes me!

[BTCisthefuture]

Just a question that i would like to have some people that do this answer. We all know MtGox is trying to crash the bitcoin value trying to save their own asses. At the time of writing the difference between Gox and other exchanges is 440 USD ( 73% under other exchanges ).

My question is, why do you go with that exchange, panic sell your bitcoins for fiat that you will most likely never get back anyway, the chances of getting bitcoins out are a bit higher i think, but still extremely low. The only reason MtGox is manipulating their market is so that a massive amount of people will open up new accounts and dump loads of fiat on their bank account to buy cheap bitcoins, then they will open up the exchange again and the value will bounce back and voila, they just made a lot of money out of a manifactured panic.

Why would you sell your coins at a 73% discount to somebody? Why would you knowingly help them achieve panic?
Maybe it's just that you're trying to make a quick profit yourself somehow?

- It hurts your portfolio.
- It hurts the bitcoin economy/trust in general.

I'd love to have some insight into why people do this.

The key word here is PANIC.

Im sure theres plenty of people who bought bitcoins solely on the thought of getting rich quick, nothing else. Possibly quite a few people who invested more money they were willing to lose.  Suddenly the price plunges and people............PANIC

[jaybny]

Just a question that i would like to have some people that do this answer. We all know MtGox is trying to crash the bitcoin value trying to save their own asses. At the time of writing the difference between Gox and other exchanges is 440 USD ( 73% under other exchanges ).

My question is, why do you go with that exchange, panic sell your bitcoins for fiat that you will most likely never get back anyway, the chances of getting bitcoins out are a bit higher i think, but still extremely low. The only reason MtGox is manipulating their market is so that a massive amount of people will open up new accounts and dump loads of fiat on their bank account to buy cheap bitcoins, then they will open up the exchange again and the value will bounce back and voila, they just made a lot of money out of a manifactured panic.

Why would you sell your coins at a 73% discount to somebody? Why would you knowingly help them achieve panic?
Maybe it's just that you're trying to make a quick profit yourself somehow?

- It hurts your portfolio.
- It hurts the bitcoin economy/trust in general.

I'd love to have some insight into why people do this.

what if I told you mtgox does not have enough BTCs?
 
https://bitcointalk.org/index.php?topic=469628.0

[Lauda]

Everyone should just stop panicking.

[MicroGuy]

someone needs to go to prison over this fiasco! This Karpeles and his friends destoyed capital and ruinined some people i think. He made a damage in the hundrededs of millions with just not halting his tradingengine! He also damaged capital of people who have never been at gox! This guy owes me!

I agree that once you've stopped deposits and withdrawals, you can't leave the trading engine running. If this isn't criminal, it should be.

[tss]

OMFG.  i can't read this anymore.  a new post, maybe a new topic and pages and pages of repetitive ... .. . 

someone mentioned "signal to noise ratio"

[ZooKeeper74]

Sounds like people are pretending MtGox is going to be around in 1 month.

Pretending is fun.

Its over folks.

[ZooKeeper74]

I don't quite get the gox-is-bad-I-told-ya attitude. The current gox situation is hurting everyone involved in or holding bitcoin, even more so all the fantastic entrepreneurial ideas here. So whatever has been said back then was apparently not loud or clear enough or presented at the wrong channel to prevent the massive damage to the whole system that we're experiencing right now.

I'm a baby in the game and still knew well enough to SELL SELL SELL when Gox stopped not only fiat withdrawals but btc withdrawals. I made a killing and will make another killing when the value bottoms out on exchanges that actually trade and I reinvest. 

Gox isnt killing Bitcoin,but if anyone thought the low Gox sells werent going to affect other exchanges, well I dont know why they thought it wouldnt.

 Keep up with Gox news and you will know exactly when to buy on other exchanges. If you still had BTC in Gox by the time 'transaction malliability' came back up, maybe you should stick to the stock market!

[Lauda]

Look at the price now, smart move everyone.

[johnyj]

I tends to guess that mark was trying hard to protect the bitcoin exchange rate but this time he failed

Even a central bank will intervene on Forex market if their currency is depreciating quickly. As an exchange owner, Mark surely can affect the exchange rate of bitcoin by using customer funds (Once the exchange rate can stay relatively stable around a certain level, it can hold itself). And this is contributing to bitcoin's success in early days of bitcoin trading: Limiting the fiat withdraw speed ensured price stability of bitcoin

He used be able to support the exchange rate using customer's fiat money, since the only smooth exit was bitcoin he didn't worry about those coins bought when he absorbed selling pressure

But this time he ran out of fiat money and there were just too many coins dumped by speculators due to no exit for bitcoins.

Another guess: There might be some powerful traders from large banks who accumulated huge amount of bitcoins and want to kill the bitcoin's reputation by crashing the bitcoin exchange rate on most well-known exchange, and they indeed succeeded this time. However they have exhausted their ammunition and never expected that other exchanges were almost unaffected by MTGOX