MtGox is more solvent than a regular bank

[knocte]

I'm just going to put this here:

We all know how our current banking system works. It's based on fractionary-reserve practices. Under current regulations, the average percentage that a bank needs to have from their depositors is 10%. I have read in other threads rumours about MtGox having 18cents on the dollar, which means it is essentially a bank with a 18% guaranteed deposit, therefore Mt.Gox is more solvent than a regular bank.

Of course now the question is: would Mt.Gox be able to morph into a regular bank to be able to operate under the law? And how would it not prevent a bank run?

[bitcoinminer]

How can you have a bank run on a bank that doesn't allow withdrawals?

Think before asking these kinds of retarded questions.

[knocte]

Do you know what the word "would" means in English? It expresses a condition. That question is framed under the condition that Mt.Gox was supposedly able to "morph" into a regular fractionary reserve bank.

[bitcoinminer]

You guys are like the ex girlfriend that can't accept that it's over.

[knocte]

I never said I was a customer.

If you don't want to discuss this please stop replying.

I'm just raising out there how inconsistent this world is. Suddenly MtGox is 18% insolvent and it is in all the media. However people don't realise that most (or all) of their banks have less percentage of their deposits than MtGox.

[bitcoinminer]

I never said I was a customer.

If you don't want to discuss this please stop replying.

I'm just raising out there how inconsistent this world is. Suddenly MtGox is 18% insolvent and it is in all the media. However people don't realise that most (or all) of their banks have less percentage of their deposits than MtGox.

Apples and spaceshuttles.

Mt Gox is uninsured and unregulated.  Banks are government regulated and FDIC insured, in America.

Pretending Mt Gox in any way resembles a bank is a fool's errand.

It's like comparing a drug dealer on Silk Road to the pharmacy at Walgreen's, except that Silk Road drug dealers are more likely to deliver your product than Mt. Gox.

[knocte]

They still have an asset: their technology (although presumably it is not very high quality).

At least, if they use version control (git, svn...) one can revert their recently retarded bugfixes, implement proper malleability-support, better accounting, and get the exchange running again. It has been running for, how long, 4 years? It "works".

[bitcoinminer]

I guess?