Bitcoin Exchange Mt. Gox Disappears

okashira said:
WOW. Mark Karpeles is such a fucking clown. He should be served with a warrant and his office raided and him arrested. It happened in the US. But the Japanese legal system is less responsible.
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You do remember not to long ago the US banking system almost ruining the global economy and taking the tax payer funded bail out and giving themselves bonuses the same year their shit finally caught up with them right?
 
Here's hoping that the rest of Bitcoins/Litecoins/WTFEcoins follow suit. Just disappear!
 
DigitalGriffin said:
The board of Mt Gox are so squicked. You don't piss off miners/hackers from Russia/China.

So who wants to start a pool on when these guys are found dead?
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If you're from Russia/China ; you know better than to try to go after a company founded with Yakuza money :)
 
I'd say this will hurt, but it will survive. There are two many major companies with vested interest in Bitcoin now. Casinos here in Vegas even take them. The major players who use it to make tax free gains probably have too much tied up to see it dwindle.

I'd guess, some of the heavy hitters that had millions still in Gox are taking over the brand in the restructuring to try and recoup their losses.
 
that's because there are no centralized banks for bitcoin

there are pros and cons to this, those focusing only on the negatives seem to be butthurt that they didn't make any money off cryptos like some of us other people did, so this is their "Ha! Gotcha!" moment
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Actually, I see this as being no different than any other pump-and-dump type scam out there. It is not a matter of being jealous or playing gotcha. It is more like watching a horror movie where you know the cute blonde shouldn't go in that room, but she's going to do it anyway, then whack, axe to the face. There are no shockers here. Investments with high risk and no security are great for making money - for someone smarter than you...
 
Twisted Kidney said:
Your bond value is dictated by your economic activity. Your GDP is real, it's quantifiable, and it's what your currency is (mostly) based on. Bonds earn money based on the risk attached to holding them, US bonds pay a shit rate because there is almost no risk attached to holding US bonds. Bonds issued by unstable economies like Italy have to pay much more because of the risk of default. Currency has a value based on how much of it there is, you can print more currency but all you end up with is more dollars/yen/yuan that are worth less money. There is no such control in Bitcoin, it has no economy, it's purely artificial.

Here's where it goes sideways. Bitcoin has zero asset backing, the risk of default or failure is somewhere near 100% and the potential for recovery is absolutely 0%. The currency is currently valued based entirely on any holder "getting out in time".
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There is an upper limit to the number of Bitcoins, unlike the number of dollars the Fed can print. This is one of the reasons the value of a bitcoin has grown compared to a couple years ago, while the value of the dollar has been dropped.
 
MrCaffeineX said:
Actually, I see this as being no different than any other pump-and-dump type scam out there. It is not a matter of being jealous or playing gotcha. It is more like watching a horror movie where you know the cute blonde shouldn't go in that room, but she's going to do it anyway, then whack, axe to the face. There are no shockers here. Investments with high risk and no security are great for making money - for someone smarter than you...
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You actually aren't describing scams, you are describing speculating.
 
Bitcoin will survive. It goes down... it goes up. Wait a few days. Meanwhile people who don't use bitcoin will have a few laughs. They don't effect the market. Who cares.
 
Draax said:
Who would have thought a Ponzi-scheme would end up this way?
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Sure, let's forget about the largest ponzi scheme ever seen in the history of this world's existence - the Federal Reserve.
 
Well, I can't say that this was entirely unexpected. Maybe it will be a lesson to people, that perhaps it's better to keep your money in something a bit more tangible.

MrCaffeineX said:
LMAO

I thought the exact same thing when I saw the video on USA Today where the guy was protesting out front because his pretend money was gone...
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Also, in front of a relatively empty office... I wonder what he intends to accomplish?
 
So much stupidity in this thread, it's staggering. "Hurrr it was fake currency what did you expect...durrrr". Stfu, what do you think all your money is?? It's paper, backed my nothing but "faith" in the US government, printed by the trillions every year and massively devalued and manipulated by the shadiest motherfuckers on earth. Madoff, Enron, the Great Recession, the Great Depression, the 1980's savings and loan meltdown, quantitative easing, fractional reserve banking. Yeah, bitcoin is the Ponzi scheme though.
 
okashira said:
Wow, a lot of misinformation here. It's totally different then the stock market. This is like having your money stored in the he bank, then the bank saying "sorry, we lost your money, you're screwed."

But it was a really shady bank and the writing has been on the wall for many months.

But it's even worse then that. Gox just disappeared without a statement - likely the CEO, Mark Karpeles, is involved with keeping some for himself.
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So basically it's Enron, a stock.
 
atp1916 said:
Sure, let's forget about the largest ponzi scheme ever seen in the history of this world's existence - the Federal Reserve.
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Except it's not and has entirely done its job - kept inflation at a steady ~2% in recent years which has been extremely beneficial for growth. In fact, it's really the opposite of a ponzi scheme. Inflationary policy causes those holding liquid assets and cash or debts with no interest to lose money. Deflationary policy does the opposite.

With deflationary currency any debts increase in value during recessionary perioeds leading to massive disruption in money velocity as well as a sort of debt hole for business and consumers - further stagnating the economy. You can read more here: http://en.wikipedia.org/wiki/Debt_deflation

Now I'm guessing by your criticism of the fed you're caught up in the Austrianization of the Internet (Interesting how this has not at all pervaded the actual study of economics where people have to learn multiple viewpoints and study real data, isn't it?).

The Austrian school's explanation of this is entirely supply-side and is descriptive. It is not prescriptive in any way. Additionally, it fails to both address and explain the complex interplay of securitized assets in a free market regarding expansion of the monetary base in the shadow banking system - which would not be regulated in any sort of Austrian discipline. It would also be untouchable even by outlawing fractional reserve banking.

So a subsequent increase in monetary base and debt by the shadow banking system, itself a free market solution, which caused a debt crisis would be catastrophic and lead to deflation and huge problems without the federal reserve and inflationary policy designed to prevent liquidity problems and deflation. Imagine if countries like Greece, Spain, and Ireland were on a Euro that was slowly deflating instead of inflating its currency? They're still in trouble now but they'd be in sooooo much worse trouble.

There are like 3 or 4 countries without central banks and they are dumb ones or are basically tourist destinations.

The problem with both the Austrian school and Keynesian economics is that modern economics problems require modern solutions... not those thought up in the 1800's prior to complex financial instruments. Sticking to and repeating dogma does nothing to solve the problems we face.
 
nutzo said:
There is an upper limit to the number of Bitcoins, unlike the number of dollars the Fed can print. This is one of the reasons the value of a bitcoin has grown compared to a couple years ago, while the value of the dollar has been dropped.
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How much has the bitcoin supply expanded in the last 3 years vs. the USD money supply?

I'd say the increase in value more likely has nothing to do with money supply growth right now, and is instead entirely due to increased exposure and awareness.
 
B2BigAl said:
So much stupidity in this thread, it's staggering. "Hurrr it was fake currency what did you expect...durrrr". Stfu, what do you think all your money is?? It's paper, backed my nothing but "faith" in the US government, printed by the trillions every year and massively devalued and manipulated by the shadiest motherfuckers on earth. Madoff, Enron, the Great Recession, the Great Depression, the 1980's savings and loan meltdown, quantitative easing, fractional reserve banking. Yeah, bitcoin is the Ponzi scheme though.
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lol.
 
I do like the fact that my "pretend money" was able to provide me with 2 R9-290x's, another R9-290, 1200 watt PS, etc..

Or am I pretending that they are actually there?
 
Draax said:
... sure its not.
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Nah dude. Bitcoin is a legit currency that is valuable because everyone will use it for transactions in the future. That's why you want to buy into the limited supply and never use waste them on transactions.

...lol
 
B2BigAl said:
So much stupidity in this thread, it's staggering. "Hurrr it was fake currency what did you expect...durrrr". Stfu, what do you think all your money is?? It's paper, backed my nothing but "faith" in the US government, printed by the trillions every year and massively devalued and manipulated by the shadiest motherfuckers on earth. Madoff, Enron, the Great Recession, the Great Depression, the 1980's savings and loan meltdown, quantitative easing, fractional reserve banking. Yeah, bitcoin is the Ponzi scheme though.
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You're an idiot if you can't tell the difference between the legal tender of the worlds most powerful nation and an algorithm an anonymous guy foisted onto neck beards everywhere.
 
Taco_Island said:
I do like the fact that my "pretend money" was able to provide me with 2 R9-290x's, another R9-290, 1200 watt PS, etc..

Or am I pretending that they are actually there?
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I know people with yachts based off a handful of playing cards. That doesn't prove shit.
 
Aluisious said:
You're an idiot if you can't tell the difference between the legal tender of the worlds most powerful nation and an algorithm an anonymous guy foisted onto neck beards everywhere.
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Fine. Have fun with your worthless paper. We'll have fun with our worthless bits. :p
 
Man I love it when a Bitcoin story is posted on the front page,so many misinformed or butthurt people chime in. To the people saying " Good i hope they all go away!" Why? How does it affect you? Are you just mad because you dont understand it or have the time to get into it and are upset at the potential profit to be made? Its not a ponzi scheme because i didnt have to buy anything to get started in crypto,just loaded up a mining program on my computer and let it sit there. And to the people questioning how it gets it value.well it gets it value because thats what people pay for it. There isnt one guy just sitting at a desk saying he wants it to be this price today. Just like anything else people will pay for what they think its worth.
 
Damn there goes all my coins and to think when it hit 1000 again after the drop i was too lazy to sell .....
 
nvgrim said:
And to the people questioning how it gets it value.well it gets it value because thats what people pay for it. There isnt one guy just sitting at a desk saying he wants it to be this price today. Just like anything else people will pay for what they think its worth.
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And there's nothing particularly wrong with that, as long as you understand it. The wrong comes when people insist that this makes it no different than any world currency,and doing things like talking about how the USD has been massively devalued, meanwhile BTC has dumped half its value in the last few months.
 
Aluisious said:
I know people with yachts based off a handful of playing cards. That doesn't prove shit.
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And I know there are plenty of spoiled rich kids who have nothing better to do than blow their parents to get a new car. No different, except I didn't have to play cards to get what I wanted.

It's called a personal experience, so with that being said, in MY EXPERIENCE I have been able to setup my computer to pay for its own upgrades. Do I need to prove it to you? No. I don't, you can disbelieve all you want and I won't lose any sleep over it.
 
Taco_Island said:
And I know there are plenty of spoiled rich kids who have nothing better to do than blow their parents to get a new car. No different, except I didn't have to play cards to get what I wanted.

It's called a personal experience, so with that being said, in MY EXPERIENCE I have been able to setup my computer to pay for its own upgrades. Do I need to prove it to you? No. I don't, you can disbelieve all you want and I won't lose any sleep over it.
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I didn't doubt you, I said it didn't matter. Reading, it's not just for nerds.
 
Aluisious said:
I didn't doubt you, I said it didn't matter. Reading, it's not just for nerds.
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It doesn't matter, the whole point is that it may be an imaginary currency to the uninformed, it can produce real world results. It's like the persona that all IT techs are hackers because they seen it in some shitty movie. Misinformed, misunderstood minded people either can't or won't grasp the concept of it and may fight it (or they are bankers).
 
Are these cyrpto-currencies taxed? If not, why? You can't have it both ways.

nvgrim said:
To the people saying " Good i hope they all go away!" Why? How does it affect you?
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GPU prices & availability immediately come to mind. I know, supply & demand right? :rolleyes:
 
eth3ton said:
Are these cyrpto-currencies taxed? If not, why? You can't have it both ways.



GPU prices & availability immediately come to mind. I know, supply & demand right? :rolleyes:
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If you make income from selling bitcoins, that's taxable. And if you don't report it, that's tax fraud.
 
thebufenator said:
If my choice was between a $500 card that pays for itself, or a $300 that does not pay for itself.........HARD FRACKING CHOICE!
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As someone who actively chooses not to participate in a massive securities scheme, there's no such thing as a card that "pays for itself", unless I'm doing some very heavy-duty graphics editing in packages that are accelerated by the GPU and a given GPU cuts out a SIGNIFICANT amount of time from renders.

As such, all I see are a bunch of dupes (or people complicit with said scam) skewing the market for VIDEO cards and making it difficult (and more expensive than it should be) to obtain one.
 
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