Now that Gox is dead, shouldn't we have a rally?

[gog1]

One of the reason the other exchange's prices are depressed was the belief that Gox will resume withdraw, which caused cheap coins being picked up at gox to be dumped elsewhere.  Now that Gox seems to have lost everything, shouldn't we have a massive rally now that this 'phantom' dump will no longer take place.

[pungopete468]

within a day we will; it's going to crash a bit but then it's back to normal possibly even a rally.

[bitcon]

many people viewing this fiasco as a blackeye on bitcoins reputation.  many investors being scared off.

[damnek]

One of the reason the other exchange's prices are depressed was the belief that Gox will resume withdraw, which caused cheap coins being picked up at gox to be dumped elsewhere.  Now that Gox seems to have lost everything, shouldn't we have a massive rally now that this 'phantom' dump will no longer take place.

That is also what I'm expecting. It will take a little while for the irrational selling to cool off, and then the whole situation with mtgox should be priced in, and we can start the recovery.

[JoelKatz]

One of the reason the other exchange's prices are depressed was the belief that Gox will resume withdraw, which caused cheap coins being picked up at gox to be dumped elsewhere.  Now that Gox seems to have lost everything, shouldn't we have a massive rally now that this 'phantom' dump will no longer take place.

This also means:

1) There are fewer coins than people thought there were, thus supply is reduced. All the coins believed held at Mt Gox probably didn't exist and were already in circulation.

2) People have fewer coins than they wanted to have, thus demand is increased. Everyone who thought they had coins at Mt Gox now knows they probably don't.

Both these factors should put upward pressure on the price. The downward movement is irrational. (Unless Gox is dumping Bitcoins on Bitstamp.)

[BreathOfZen]

No? It turns out that one of the most entrenched and well known Bitcoin vendors was a large fraud, casting the doubt of "ponzi" on all of Bitcoin as a whole. Most people didn't know that MtGox was a problem, and now they will hear in the media that "bitcoin==fraud".  Why would it go up?

[DieJohnny]

One of the reason the other exchange's prices are depressed was the belief that Gox will resume withdraw, which caused cheap coins being picked up at gox to be dumped elsewhere.  Now that Gox seems to have lost everything, shouldn't we have a massive rally now that this 'phantom' dump will no longer take place.

This also means:

1) There are fewer coins than people thought there were, thus supply is reduced. All the coins believed held at Mt Gox probably didn't exist and were already in circulation.

2) People have fewer coins than they wanted to have, thus demand is increased. Everyone who thought they had coins at Mt Gox now knows they probably don't.

Both these factors should put upward pressure on the price. The downward movement is irrational.

If bitcoin were not already worth 6 billion dollars, maybe I would be more aligned with your sentiment. Billions are hard to come by even today.

We also do not know the extent of the fraud, incompetence, et cetera... and the vulnerability of the current market. Only time will tell...

I think we will see a capitulation ahead as we still have lots of mining going on and people will continue to convert to fiat to pay their bills. could see $100 coins IMHO.... Bitcoin is vulnerable right now, keeping my eye on all possibilities.

Better hope another bitcoin technology vulnerability is not exposed in the next few weeks.....

[spiderbrain]

No? It turns out that one of the most entrenched and well known Bitcoin vendors was a large fraud, casting the doubt of "ponzi" on all of Bitcoin as a whole. Most people didn't know that MtGox was a problem, and now they will hear in the media that "bitcoin==fraud".  Why would it go up?

The 'most people' who will think this aren't the people who buy and sell bitcoins.

[Bitcoin_is_here_to_stay]

2) People have fewer coins than they wanted to have, thus demand is increased. Everyone who thought they had coins at Mt Gox now knows they probably don't.

Both these factors should put upward pressure on the price. The downward movement is irrational. (Unless Gox is dumping Bitcoins on Bitstamp.)

LOL, you really think that people who "thought they had coins on Mt Gox" would now run to give away more of their $$$$ to another completely unregulated exchange?

I beg to differ. What is worst, the ppl who planned to invest in bit coin may now have second thoughts

[nmersulypnem]

An important thing to understand is that a lot of the people who *would* usually rally, have just lost all their money on the Gox platform.

[orpington]

Totally rally time!

Pop the cork!

Finally that mess is gone.

[redhawk979]

If Gox was a fly-by-night exchange that folded, I don't think the price would have fluctuated much.

However as others have said, because Gox was very public and well known and it was often the exchange cited in the press (even if that was a poor choice). I wouldn't be surprised to see the story crop up on one of the larger news outlets like WSJ. I would expect the price to continue dropping for another few days until some positive news flows in.

[Cluster2k]

For a long time MtGox was the go-to exchange for the media when reporting bitcoin's price.  In the short to medium term MtGox's disappearance will hurt.  A lot.  It affects the entire credibility of bitcoin as a viable means to do business.  What business wants to conduct their transactions in a commodity that can fluctuate violently in value and have the previously major exchange disappear?  Critics of bitcoin can point to MtGox as evidence that the whole thing is a money making scam and far too unstable to be useful.

The key thing to watch is how MtGox will be wound up over the coming months and years.  Will account holders receive their bitcoins and money back?  

[Edward50]

I always wondered how any big hedge fund etc. would invest into bitcoins without easily risking losing all of their bitcoins. I mean all it would take is someone internal to transfer out/steal the bitcoins.

I guess my concern had validity.

Anyway looks like I'm out $670 dollars that I had left on Mt Gox. Oh well..

[Edward50]

For a long time MtGox was the go-to exchange for the media when reporting bitcoin's price.  In the short to medium term MtGox's disappearance will hurt.  A lot.  It affects the entire credibility of bitcoin as a viable means to do business.  What business wants to conduct their transactions in a commodity that can fluctuate violently in value and have the previously major exchange disappear?  Critics of bitcoin can point to MtGox as evidence that the whole thing is a money making scam and far too unstable to be useful.

The key thing to watch is how MtGox will be wound up over the coming months and years.  Will account holders receive their bitcoins and money back?  

Hey Cluster2k,  Funny how the bitcoin bulls will spin really bad news into good news. Most are still obvious in the delusional stage.

[lyth0s]

Account holders won't see their money back. However, mt gox being at $100/coin has spread really bad news about bitcoin, let alone their insolvency. Getting rid of gox all together will at first hurt the price of BTC, but then it will be able to resume growth. I have friends that are completely bitcoin "noobs" and btc being low on mt gox has scared everyone away from it. get rid of mt gox, btc can grow again.

Disclosure: Long term I've very bullish on bitcoin...

[smoothie]

One of the reason the other exchange's prices are depressed was the belief that Gox will resume withdraw, which caused cheap coins being picked up at gox to be dumped elsewhere.  Now that Gox seems to have lost everything, shouldn't we have a massive rally now that this 'phantom' dump will no longer take place.

This also means:

1) There are fewer coins than people thought there were, thus supply is reduced. All the coins believed held at Mt Gox probably didn't exist and were already in circulation.

2) People have fewer coins than they wanted to have, thus demand is increased. Everyone who thought they had coins at Mt Gox now knows they probably don't.

Both these factors should put upward pressure on the price. The downward movement is irrational. (Unless Gox is dumping Bitcoins on Bitstamp.)

This is exactly what I was thinking.

Likely this is a temporary downward pressure and as those who panic sell off (whether or not GOX) will eventually not have any more coins to sell.

Cheap coins!

[smoothie]

One of the reason the other exchange's prices are depressed was the belief that Gox will resume withdraw, which caused cheap coins being picked up at gox to be dumped elsewhere.  Now that Gox seems to have lost everything, shouldn't we have a massive rally now that this 'phantom' dump will no longer take place.

This also means:

1) There are fewer coins than people thought there were, thus supply is reduced. All the coins believed held at Mt Gox probably didn't exist and were already in circulation.

2) People have fewer coins than they wanted to have, thus demand is increased. Everyone who thought they had coins at Mt Gox now knows they probably don't.

Both these factors should put upward pressure on the price. The downward movement is irrational.

If bitcoin were not already worth 6 billion dollars, maybe I would be more aligned with your sentiment. Billions are hard to come by even today.

We also do not know the extent of the fraud, incompetence, et cetera... and the vulnerability of the current market. Only time will tell...

I think we will see a capitulation ahead as we still have lots of mining going on and people will continue to convert to fiat to pay their bills. could see $100 coins IMHO.... Bitcoin is vulnerable right now, keeping my eye on all possibilities.

Better hope another bitcoin technology vulnerability is not exposed in the next few weeks.....

The fed is printing between $60 and $80 billion of new notes a month. So no shortage there. Lots of trees to turn into FRN's.

[undeadbitcoiner]

Better to remain silent and be thought a fool than to speak out and remove all doubt.

Abraham Lincoln

But untill how long?
By By Gox

[chesthing]

One of the reason the other exchange's prices are depressed was the belief that Gox will resume withdraw, which caused cheap coins being picked up at gox to be dumped elsewhere.  Now that Gox seems to have lost everything, shouldn't we have a massive rally now that this 'phantom' dump will no longer take place.

This also means:

1) There are fewer coins than people thought there were, thus supply is reduced. All the coins believed held at Mt Gox probably didn't exist and were already in circulation.

2) People have fewer coins than they wanted to have, thus demand is increased. Everyone who thought they had coins at Mt Gox now knows they probably don't.

Both these factors should put upward pressure on the price. The downward movement is irrational. (Unless Gox is dumping Bitcoins on Bitstamp.)

This is exactly what I was thinking.

Likely this is a temporary downward pressure and as those who panic sell off (whether or not GOX) will eventually not have any more coins to sell.

Cheap coins!

So you buying right now or waiting for a lower price?