RE: Gox -- this is what we wanted

[thezerg]

The Gox debacle is showing the system is working.  No bailouts.  No TARP deal with the fed the prints $ for those who apply, devaluing everybody else.  The faulty part is removed from the BTC engine and replaced by better functioning and more diverse solutions.  Bitstamp, coinbase, bitfinex, ATMs.  Outside of BTC-land, the company gets bailed out and the people in charge remain to poison and drain the system of vitality forever. 

When the engine hiccups some people get burned, and I am very sorry if you are one of them. 

But bitcoin technology cannot help us if we don't USE it.  WHEN are we going to insist that BTC balances are held by exchanges in individual, blockchain-verifiable accounts?  Or even use multi-sig for greater security?  To stop every trade from appearing on the blockchain, these accounts could be "renormalized" daily or even weekly.

[Torque]

+1000

This is great post.  You are correct in that what we are witnessing is the laissez-faire free market of bitcoin working as it should.  It will foster more competition in the market and between the exchanges.  More exchanges will hopefully appear that can do a better job.  It will put pressure on all exchanges to be better, to be smarter, to protect themselves, and also to protect their customers.  Bitcoin will be stronger because of this.

I just hope it stays that way, and we don't someday in the future end up with "too big to fail" exchanges that need a bailout from either government or corporations in order for the bitcoin market to survive.

[Cluster2k]

It is true that someone created this great decentralized commodity... and then we created a few simple points of failure in the form of exchanges.  MtGox has been failing since mid 2013.  An exchange you can't get money out of quickly and easily is not really an exchange.

It looks like the market has spoken with today's 50% collapse in GoxCoins, on top of the previous 50% discount.  I don't know how MtGox digs its way out from here.  Offering a discount on trades and maybe some free money to new customers just isn't going to cut it.  Their rather ambiguous 20 February update about having to move due to 'security issues' was a terrible move.  They've made the information vacuum go nuclear.  Were angry customers turning up at their address demanding their money back or something?

[sgbett]

The Gox debacle is showing the system is working.  No bailouts.  No TARP deal with the fed the prints $ for those who apply, devaluing everybody else.  The faulty part is removed from the BTC engine and replaced by better functioning and more diverse solutions.  Bitstamp, coinbase, bitfinex, ATMs.  Outside of BTC-land, the company gets bailed out and the people in charge remain to poison and drain the system of vitality forever.  

When the engine hiccups some people get burned, and I am very sorry if you are one of them.  

But bitcoin technology cannot help us if we don't USE it.  WHEN are we going to insist that BTC balances are held by exchanges in individual, blockchain-verifiable accounts?  Or even use multi-sig for greater security?  To stop every trade from appearing on the blockchain, these accounts could be "renormalized" daily or even weekly.

Agree. This is actually what should happen. Unfortunate that people might get burned, but in an unregulated emerging market they are the risks. People that don't understand them should wait 'til the government makes it safe for them.

[BitCoinsLOL]

The Gox debacle is showing the system is working.  No bailouts.  No TARP deal with the fed the prints $ for those who apply, devaluing everybody else.  The faulty part is removed from the BTC engine and replaced by better functioning and more diverse solutions.  Bitstamp, coinbase, bitfinex, ATMs.  Outside of BTC-land, the company gets bailed out and the people in charge remain to poison and drain the system of vitality forever. 

When the engine hiccups some people get burned, and I am very sorry if you are one of them. 

But bitcoin technology cannot help us if we don't USE it.  WHEN are we going to insist that BTC balances are held by exchanges in individual, blockchain-verifiable accounts?  Or even use multi-sig for greater security?  To stop every trade from appearing on the blockchain, these accounts could be "renormalized" daily or even weekly.

We don't need Paulson and Geitner to bail us out 

[RodeoX]

That is a good point. This what free markets look like. Brutal, uncaring, and fair.

[Tzupy]

It is true that someone created this great decentralized commodity... and then we created a few simple points of failure in the form of exchanges.  MtGox has been failing since mid 2013.  An exchange you can't get money out of quickly and easily is not really an exchange.

It looks like the market has spoken with today's 50% collapse in GoxCoins, on top of the previous 50% discount.  I don't know how MtGox digs its way out from here.  Offering a discount on trades and maybe some free money to new customers just isn't going to cut it.  Their rather ambiguous 20 February update about having to move due to 'security issues' was a terrible move.  They've made the information vacuum go nuclear.  Were angry customers turning up at their address demanding their money back or something?

Agreed. Those praising the market collapse on MtGox don't understand that the same could happen, with some manipulation, on other exchanges too.
And then bitcoiners will be left with worthless digital tulip bulbs. Exchanges should be properly regulated and periodically audited.

[BitTrade]

Their rather ambiguous 20 February update about having to move due to 'security issues' was a terrible move.  They've made the information vacuum go nuclear.

Maybe that was the point? 

[Bitcoin_is_here_to_stay]

I guess you guys have no money invested there

[mccoyspace]

I guess you guys have no money invested there

I used to. I left months ago after the dwolla seizure, as did many others.

"but the trade volume...."
"but the price premium...."

There have been countless warning voices. There are pages and pages and pages of documentation of their problems.
People just didn't want to believe. Even today, I'm sure there are lots of people blinded by greed sending fresh money to "buy" cheap coins.

But honestly I'm not trying to be holier then thou. I lost a bunch of money on coinlenders.

[polarhei]

They bet higher than we thought just like before. The current mtgox users think, they are able to make triple or even more after few days.

Let see if it is true or not.

[DanielVG]

MTGox is currently under 100$

[proudhon]

MTGox is currently under 100$

We have a time traveler here. 

[JimboToronto]

MTGox is currently under 100$

We have a time traveler here. 

Past or future? 

[MatTheCat]

MTGox is currently under 100$

We have a time traveler here. 

Past or future? 

Future of course you grade A retard idiot.

[Rygon]

I guess you guys have no money invested there

I used to. I left months ago after the dwolla seizure, as did many others.

"but the trade volume...."
"but the price premium...."

There have been countless warning voices. There are pages and pages and pages of documentation of their problems.
People just didn't want to believe. Even today, I'm sure there are lots of people blinded by greed sending fresh money to "buy" cheap coins.

But honestly I'm not trying to be holier then thou. I lost a bunch of money on coinlenders.

+1. Folks have had plenty of time to get out of Mt. Gox. The warning signs have been everywhere. Unfortunately, there will always be some people will either become too greedy, or willing to take the risk, and try to profit off a sinking ship. Even when Pirate was running the Ponzi scheme that become clearer by the day, there were still believers on these forums for weeks even after the whole thing collapsed.

Hopefully everyone will learn to be cautious and demand a higher level of professionalism and accountability from exchanges.

[Cassius]

Damn straight. I have a lot of sympathy for people who have lost bitcoins from Gox (or who haven't yet, but look like they're about to). But Gox has been failing for a long time and the way they've treated their users, they don't deserve to stay afloat. Bitcoin is about transparency and openness, and Gox has been anything but.

[BitcoinBobbeh]

MTGox is currently under 100$

We have a time traveler here. 

Past or future? 

Future of course you grade A retard idiot.

YES!

A PROUDHON CONFIRMATION AND A MTC BURN IN THE SAME THREAD

[JimboToronto]

you grade A retard idiot.

Quit talking to yourself.

[DanielVG]

MTGox is currently under 100$

We have a time traveler here. 

Past or future? 

oh wait, it's under 100 €. whoops