Bitcoin fails??

[tangoseal]

http://abcnews.go.com/m/story?id=22713601&ref=http://www.drudgereport.com/

 

[Spazturtle]

No, that's like saying fiat currency died when the Icelandic banks collapsed.

If you store your money in something (MtGox, Icelandic banks) that everyone knows is bad then don't cry when you lose your money.

MtGox has been shit for over half a year now, anyone with any sense stopped using it.

 

[sbinh]

who care..

 

[Gilthanis]

Probably a better response posting in the Minin & Cryptocurrency threads.

http://hardforum.com/forumdisplay.php?f=137

 

[Deleted whining member 223597]

More like OP fails.

 

[Dreamerbydesign]

No, that's like saying fiat currency died when the Icelandic banks collapsed.

If you store your money in something (MtGox, Icelandic banks) that everyone knows is bad then don't cry when you lose your money.

MtGox has been shit for over half a year now, anyone with any sense stopped using it.

Except for the 6% + of total BTC that it held..... and it STILL had the most transactions last month...

So everyone is ill informed and has no sense?

 

[Deleted whining member 223597]

Except for the 6% + of total BTC that it held..... and it STILL had the most transactions last month...

So everyone is ill informed and has no sense?

Lol. Let's see, Mt. Gox has been fucking up for years now and people still continued to use it. I guess people love to get fucked over and hate getting any fiat out of an exchange.

 

[Carbon_Rod]

Except for the 6% + of total BTC that it held..... and it STILL had the most transactions last month...

So everyone is ill informed and has no sense?

I think that everyone had a hope they would pull through. After all, they were Mt.Gox! The first! The biggest! The baddest! The one that, at least in my opinion, came across with the air that they were the defacto controllers of the bitcoin price.

Even on other exchanges with chat boxes, everyone would say "Gox going up!" or "Gox is tanking... we'll feel it here shortly" or some such thing. When the mainstream news media would refer to the price of Bitcoin, they would often use Gox as the source. So, you can see how they gave people that idea that they were probably THE source for Bitcoin so they must not be able to fail. I'm pretty sure many of the ill informed were simply going about business thinking that any delays or hiccups along the way were merely bumps in the road and will be ironed out shortly... because this was Gox. (Supposedly) Infallible Gox.

And being that they were the first major Bitcoin exchange, they must have had lots of time to iron out the bugs in their systems. Apparently that was not so.

It was also because Gox didn't publish anything with regards to what was happening often enough. They were pretty much a closed book, so even up until the freezing of withdrawals, everyone thought operations were proceeding normally. I seem to think it was probably also an internal decision to keep the public in the dark because they didn't want a mass exodus. Nothing can cause an exodus from a cruise ship faster than the captain admitting they might be taking on water.

So, yes, everyone was pretty much ill informed as to Gox's real status because they kept everyone in the dark as much as possible.

 

[Dreamerbydesign]

Lol. Let's see, Mt. Gox has been fucking up for years now and people still continued to use it. I guess people love to get fucked over and hate getting any fiat out of an exchange.

I don't deal in crypto's but I noticed one thing. Everyone here says Gox is terrible and "has been for years" yet everything I read says they are the #1 used exchange EVEN with all the bad publicity in the last 18 months.

Just kind of odd.

 

[Dreamerbydesign]

I think that everyone had a hope they would pull through. After all, they were Mt.Gox! The first! The biggest! The baddest! The one that, at least in my opinion, came across with the air that they were the defacto controllers of the bitcoin price.

Even on other exchanges with chat boxes, everyone would say "Gox going up!" or "Gox is tanking... we'll feel it here shortly" or some such thing. When the mainstream news media would refer to the price of Bitcoin, they would often use Gox as the source. So, you can see how they gave people that idea that they were probably THE source for Bitcoin so they must not be able to fail. I'm pretty sure many of the ill informed were simply going about business thinking that any delays or hiccups along the way were merely bumps in the road and will be ironed out shortly... because this was Gox. (Supposedly) Infallible Gox.

And being that they were the first major Bitcoin exchange, they must have had lots of time to iron out the bugs in their systems. Apparently that was not so.

It was also because Gox didn't publish anything with regards to what was happening often enough. They were pretty much a closed book, so even up until the freezing of withdrawals, everyone thought operations were proceeding normally. I seem to think it was probably also an internal decision to keep the public in the dark because they didn't want a mass exodus. Nothing can cause an exodus from a cruise ship faster than the captain admitting they might be taking on water.

So, yes, everyone was pretty much ill informed as to Gox's real status because they kept everyone in the dark as much as possible.

Whats truly interesting was the fashion in which it crumbled.

People act like BTC is the next best thing. Liberation 2.0! But then the largest exchange falls apart over benign bad management of funds and terrible decisions.

So people really research this stuff non stop, but still werent smart enough to figure out the walls were crumbling?

 

[IEC]

I don't deal in crypto's but I noticed one thing. Everyone here says Gox is terrible and "has been for years" yet everything I read says they are the #1 used exchange EVEN with all the bad publicity in the last 18 months.

Just kind of odd.

Because people don't bother doing any research, and there's a massive herd mentality behind lots of things cryptocoin-related.

Gox had the highest "premium" on BTC for a long time but that was because it was difficult to withdraw funds. That difficulty should have been a clue for people, but they got greedy...

 

[Carbon_Rod]

Whats truly interesting was the fashion in which it crumbled.

People act like BTC is the next best thing. Liberation 2.0! But then the largest exchange falls apart over benign bad management of funds and terrible decisions.

So people really research this stuff non stop, but still werent smart enough to figure out the walls were crumbling?

Well, let's just say, I'm a miner and I don't believe any one of these coins to be the next best thing. In fact I do think the market will fail at some point. I'm in it for the here and now, make some cash on the side and get out without too much invested into hardware to do it. I agree with those folks that believe that Bitcoin will never become a mainstream "currency" because of its volatility. It's treated too much like a commodity or stock right now... not a lot of it is actually in circulation. I'm sure people are turned off by the high price without the realization that it divides easily into any number of decimal places. Heck, just using Bitcoin anywhere involves the use of a localized wallet that has to be loaded with funds and not a lot of people yet know how to do that. And there's too few places that actually accept it. But that's all beside the point.

You also have to realize that because Bitcoin is unregulated, those creating exchanges do so with no blueprints to follow. I truly believe that Mark Karpeles was an internet nerd that wanted to provide an exchange service, but it got too far above his head. He was also probably one of those real dumb nerds that think they have the smarts to do everything themselves and was reluctant to get others involved. If there was an accounting issue, why not hire an accounting firm or an in house accountant FFS? Oh, don't wanna give up any of those millions... I see. I know, doing that in the end would have been too late anyway.

As for others research into Gox, I'm not sure much would have turned up. Again, little was known, and yes there were the annoyances along the way, but my impression was that people just let those slide and still figured Gox was infallible. Other than that, I'm not sure what kind of research others put into Gox. The stuff I knew about it was gleaned from reading the chat box on BTC-e. I never dealt with them... never wanted to. In my eyes, Gox was an island. You can get to it easy, but getting off was extremely difficult.

It is also probably like IEC said. There are a number of investors into BTC that just wanted in on the fad market to make some quick cash. Gox was the easy way in, and probably for them, seemed like it was going to be the way out when it came time for them to get out.

I guess the closest analogy I can think of it is Gox was like a resort hotel on a fantasy island. It was one of the only ones available back in the day and probably the most swanky of them all. People booked rooms there, even left their things in the room thinking they were all safe because that hotel was around the longest, other people had a good stay there, and generally people just got comfortable with it. There were issues sometimes where people wanted to leave and requested their bags be brought down and the bellhop took an inordinate amount of time to do so, but many got their bags eventually and they went on their merry way. In answer to that issue, Gox merely stated that they were trying to replace the bellhop. However, the people there got so comfortable they never thought the hotel would burn down to the ground... it wasn't in the signs that something was wrong up until the hotel started locking the doors to the rooms and told people they couldn't take their stuff out yet because the hotel was being fumigated. It was only until after the fire were they told that the fire alarms weren't working and everything was lost.

 

[Brackle]

I don't deal in crypto's but I noticed one thing. Everyone here says Gox is terrible and "has been for years" yet everything I read says they are the #1 used exchange EVEN with all the bad publicity in the last 18 months.

Just kind of odd.

exactly its odd. And why you would keep your coins on any exchange instead of your personal wallet is beyond me.

Gox had its warnings, no one cared. Now with people out millions people care?....

 

[atp1916]

Panic sellllllllll!!!!~~

.....

oh wait, there's a couple hundred million other exchanges i can use?

HODL!

 

[mkrohn]

Whats truly interesting was the fashion in which it crumbled.

People act like BTC is the next best thing. Liberation 2.0! But then the largest exchange falls apart over benign bad management of funds and terrible decisions.

So people really research this stuff non stop, but still werent smart enough to figure out the walls were crumbling?

The people that did any research were the ones smart enough to stay away from gox. I mean really how could an exchange be priced THAT much above every other exchange?

 

[collegeboy69us]

It's been said here and many other places, anyone with sense got the hell outta there a long time ago.

I sure did, and I'm glad!

After the ability to cash out on Gox via Dwolla went away, I knew something was up. Pulled all my coins (all 3 of them) and took my business elsewhere. For recognizing the warning signs I was rewarded by NOT getting my coins stolen.

This wasn't an overnight thing -- I'm no financial wizard but the warning signs were obvious even to me. I feel bad for the people that got screwed... but not THAT bad because there were so so SO many chances to get out alive, nobody wanted to take it though because they were greedy.

 

[atp1916]

Mt. Gox failing is exactly what needed to happen. Now what needs to happen is that these individuals running that place need to go to jail. Bitcoin should not be above law enforcement oversight.

A decentralized system weeds out the bad apples on its own because of its inherently elastic disjoint construction. This type of isolation promotes long-term survivability. I would rather have baseline long-term survivability than short term "stabilization." The more loosely coupled the btc network is, the better.

Remember BTC-China?

 

[Skripka]

Mt. Gox failing is exactly what needed to happen. Now what needs to happen is that these individuals running that place need to go to jail. Bitcoin should not be above law enforcement oversight.

A decentralized system weeds out the bad apples on its own because of its inherently elastic disjoint construction. This type of isolation promotes long-term survivability. I would rather have baseline long-term survivability than short term "stabilization." The more loosely coupled the btc network is, the better.

Remember BTC-China?

Should they go to jail though?

As of yet the entire BTC artifice is unregulated. Sending the guys to jail is basically an admission that the entire thing is a currency, that people are engaging in interstate commerce, and that therefore the whole thing needs regulated and be subject to all the fiscal/banking laws of any other currency.


You want the guys to go to jail...or do you want BTC free from regulation?

 

[Brackle]

Should they go to jail though?

As of yet the entire BTC artifice is unregulated. Sending the guys to jail is basically an admission that the entire thing is a currency, that people are engaging in interstate commerce, and that therefore the whole thing needs regulated and be subject to all the fiscal/banking laws of any other currency.


You want the guys to go to jail...or do you want BTC free from regulation?

They wont go to jail, they will meet the fate of early gold miners where people were robbed of gold....I shouldn't have to tell you how those people took care of business.

Either way If I were any former employee of GOX I would go into hiding. People are crazy, and you just lost millions of cash.....yea hide for a long time.

Just my 0.000036 BTC (from AFD in another post!)

 

[atp1916]

Should they go to jail though?

As of yet the entire BTC artifice is unregulated. Sending the guys to jail is basically an admission that the entire thing is a currency, that people are engaging in interstate commerce, and that therefore the whole thing needs regulated and be subject to all the fiscal/banking laws of any other currency.


You want the guys to go to jail...or do you want BTC free from regulation?

Law enforcement oversight is not "regulation", and it sure as hell doesn't take "fiscal/banking laws" to determine/define what theft is. You steal, you go to jail. Simple as that.

BTC is no longer the currency (or expression) of anarchists and extreme Libertarians. Moderates are taking it over, and we have no problem with law enforcement oversight.

 

[Skripka]

Law enforcement oversight is not "regulation", and it sure as hell doesn't take "fiscal/banking laws" to determine what theft is. You steal, you go to jail. Simple as that.

BTC is no longer the currency (or expression) of anarchists and extreme Libertarians.

Moderates are taking it over, and we have no problem with law enforcement oversight.

Theft of what? (he asks rhetorically)

You admit that BTC is a currency and used in interstate commerce (that it has value that is traded over borders) that right there is 100% solid constitutional grounds for it to be regulated by Congress. Article 1 Section 8.