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Author Topic: Paper Bitcoins  (Read 1799 times)
MtGox_Dylan
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November 30, 2011, 08:41:30 AM
 #21

Mt Gox codes are exactly that - a promise of actual BTC.  As long as Mt. Gox keeps exactly the number of BTC on account that they have promised in all of their outstanding unclaimed codes all is well with the world - peace, harmony and love.  However, if people start using the codes themselves as a longer term store of value or worse yet as a medium of exchange then Mt. Gox may be tempted into issuing more codes than they have BTC and the evil dark lord of fractional reserve banking will rise again  Shocked !

As consumers we can prevent this by using the Mt. Gox codes for only a short period of time and claiming them as soon as possible.  Also ony accept actual BTC as payment (coins ok as they contain actual BTC) - never accept promises of BTC for payment.

There is already a market for the codes.  You can buy them with credit card payment at http://www.mrcoins.org
 

Sorry to bring up an earlier post, but I thought I'd address this point for clarity's sake. Mt.Gox Redeemable Codes for either bitcoins or traditional currency automatically "remove" the relevant sum from a user's account on their creation. These funds are then held in limbo until the code is redeemed. As such, it is impossible for a user to create a redeemable code for more funds than they have access to.

Since these funds are drawn from a user's account, a redeemable code represents funds which are in existence at the time of its creation, which are held for as long as it takes for the code to be redeemed. Since the actual amount of bitcoins or dollars won't vary in a user's account over time (unlike the value of those funds) then as long as an entity which accepts Mt.Gox Redeemable Codes exists, they will be valid.

Of course, this assumes that Mt.Gox does not access, use or alter user's funds in any way (apart from the taking of trade fees), but I hope the community is willing to trust us on that point.

If there are any other questions or concerns in relation to Mt.Gox Redeemable Codes, feel free to contact us on the forums, or at support@mtgox.com.

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November 30, 2011, 08:45:41 AM
 #22

Mt Gox codes are exactly that - a promise of actual BTC.  As long as Mt. Gox keeps exactly the number of BTC on account that they have promised in all of their outstanding unclaimed codes all is well with the world - peace, harmony and love.  However, if people start using the codes themselves as a longer term store of value or worse yet as a medium of exchange then Mt. Gox may be tempted into issuing more codes than they have BTC and the evil dark lord of fractional reserve banking will rise again  Shocked !

As consumers we can prevent this by using the Mt. Gox codes for only a short period of time and claiming them as soon as possible.  Also ony accept actual BTC as payment (coins ok as they contain actual BTC) - never accept promises of BTC for payment.

There is already a market for the codes.  You can buy them with credit card payment at http://www.mrcoins.org
 

Sorry to bring up an earlier post, but I thought I'd address this point for clarity's sake. Mt.Gox Redeemable Codes for either bitcoins or traditional currency automatically "remove" the relevant sum from a user's account on their creation. These funds are then held in limbo until the code is redeemed. As such, it is impossible for a user to create a redeemable code for more funds than they have access to.

Since these funds are drawn from a user's account, a redeemable code represents funds which are in existence at the time of its creation, which are held for as long as it takes for the code to be redeemed. Since the actual amount of bitcoins or dollars won't vary in a user's account over time (unlike the value of those funds) then as long as an entity which accepts Mt.Gox Redeemable Codes exists, they will be valid.

Of course, this assumes that Mt.Gox does not access, use or alter user's funds in any way (apart from the taking of trade fees), but I hope the community is willing to trust us on that point.

If there are any other questions or concerns in relation to Mt.Gox Redeemable Codes, feel free to contact us on the forums, or at support@mtgox.com.

Good to know.  Be sure to let us know if you ever relax your self imposed reserve requirement!

Our family was terrorized by Homeland Security.  Read all about it here:  http://www.jmwagner.com/ and http://www.burtw.com/  Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!
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November 30, 2011, 08:51:13 AM
 #23

Whilst it is true that the requirement is currently self-imposed, financial laws in the majority of markets Mt.Gox supports require that only transaction fees be taken from users' accounts with the rest left untouched by the company, except where processing payments. Whether these laws apply to Mt.Gox would of course depend on the type of business that Mt.Gox is classified under.
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November 30, 2011, 04:49:02 PM
 #24

Although I trust Mt. Gox, I personally feel like the way that BitBills and Causcious Bitcoins are going is the better way to go.  If one day I can no longer trust Mt. Gox, my BitBills are still safe.

Say Mt. Gox gets hacked, my redemption codes are now worthless, my BitBills are not.  There is more trust in the dual hologram system than redemption codes, not because Mt. Gox is untrustworthy, but just because of how the system is designed.

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