Oh just great... There goes the BTC price.

C

Carbon_Rod

Gawd
Joined
Apr 2, 2012
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That sounds a little dramatic. "this could be the end of Bitcoin"

I understand they have a mega market, but even if that is true, the price will rebound when a new Gox comes along.
 
I'm ignoring the whole thing going on, it will stabilize at a higher price again once this Gox crap is over.
 
Bonksnp said:
That sounds a little dramatic. "this could be the end of Bitcoin"

I understand they have a mega market, but even if that is true, the price will rebound when a new Gox comes along.
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I dunno... I have a feeling his statement about people losing faith in the system and governments stepping in is close to the truth. That is all assuming this article is not FUD.

As for the price rebounding... hmmmm... hard to say. A second time around it doesn't seem as novel and unpredictable as the first. The first time people bought into bitcoin and forced it up past $1000 it was partly because it was new and exciting and nobody knew how far it could go. If bitcoin were to lose a ton of its value right now, I'm not sure it would recover to where it is right now... People would be more cautious and unwilling to spend money on something that could drop at a moment's notice. After all, if Gox screwed it up this bad, what happens if another exchange drops the ball? And that's where the government will step in.

As far as others are concerned though, it appears as though others are just going about their business as usual... the BTC price has stopped its sudden plummet and has actually recovered a few bucks.
 
Sounds like a bunch of BS, but then again BTC has never needed anything more than BS to see the prices plummet.
 
Well, if this article is just some silly hoax, then it still won't mean the end of Gox.

That article may be FUD anyway. Originally when the "transaction malleability" issue was discovered, even one of the Bitcoin core devs came out and said that it would not allow an attacker to steal bitcoins. Yet this article claims attackers used said transaction malleability bug to steal bitcoins for years. I'm willing to believe the dev over a third party article... though the dev's statement about the severity of the malleability bug could have been worded carefully so as not to upset the market (a.k.a a white lie).
 
MtGox is incompetent of course, but losing 750K Bitcoins takes things to a whole new level. I don't believe this.
 
x3sphere said:
MtGox is incompetent of course, but losing 750K Bitcoins takes things to a whole new level. I don't believe this.
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Market in general seems to believe it though - or perhaps fears that it might be true. Gox BTC prices now below $130. If only I could get some transferred for that price, lol.
 
Price volatility due to panic selling in the midst of a temporary crises != accurate long-term portrayal of btc life expectancy.

The media never talks about the house of paper that is Gox. I personally don't want to see Gox fall because that would mean people individually lose BTC, but the weak links must be eliminated (or at least corrected beyond reasonable doubt).

BTC will rebound. Mark my words. Hold the line now, and reap the future reward.
 
If Gox loses 750k bitcoins, that means Gox is dead. That also means that the remaining bitcoins are worth (market cap) / (circulation - 750k coins) more. Just because the coins disappear doesn't mean the market cap magically disappears.

It just means idiots left their coins in the hands of an exchange instead of their personal wallets.
 
Barring any large swap pools, why would anyone leave their coins on an exchange?

You leave your shit there, you deserve to lose it IMO....
 
IEC said:
Market in general seems to believe it though - or perhaps fears that it might be true. Gox BTC prices now below $130. If only I could get some transferred for that price, lol.
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Gox was at $110 just a day or so ago...
 
I can see why the panic is there though... the inherent insecurity of the system. There's no FDIC to bail you out if something like this happens. But at the same time people have to take the inherent risk for what something like BTC is - they want anonymous and no intervention, they're going to have to realize the risk of what might happen when someone like Gox decides to walk off with their money.
 
Carbon_Rod said:
I dunno... I have a feeling his statement about people losing faith in the system and governments stepping in is close to the truth. That is all assuming this article is not FUD.

As for the price rebounding... hmmmm... hard to say. A second time around it doesn't seem as novel and unpredictable as the first. The first time people bought into bitcoin and forced it up past $1000 it was partly because it was new and exciting and nobody knew how far it could go. If bitcoin were to lose a ton of its value right now, I'm not sure it would recover to where it is right now... People would be more cautious and unwilling to spend money on something that could drop at a moment's notice. After all, if Gox screwed it up this bad, what happens if another exchange drops the ball? And that's where the government will step in.

As far as others are concerned though, it appears as though others are just going about their business as usual... the BTC price has stopped its sudden plummet and has actually recovered a few bucks.
Click to expand...

Yeahhhh, I'm gonna have to....sorta...disagree with you there?

/Lumburg

:)

Remember that when the btc price went over 1k, only a few months ago, it wasn't new. It already saw a mega spike in April 2012 and everyone thought that it would stabilize around $100 and that was that. Then China came onboard and blew it up. It receded when China said they won't recognize it as a currency (of something like that)

Even though we are all pretty versed in the crypto world, you have to remember that the vast majority are not. Most don't even know it exists. There's still a very long road to go and if it starts to become utilized on a global scale, there's to telling how much a bitcoin or any other alt coin could be worth.
 
Bonksnp said:
Yeahhhh, I'm gonna have to....sorta...disagree with you there?

/Lumburg

:)
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By all means, disagree.... I'm hoping I'm wrong. I do hope BTC does make a miraculous climb back to at least $800... that seemed like a very good sweet spot IMO. Not exactly out-of-this-world high, but not too low either. I know it won't happen overnight. And I really think once Gox is out of the picture, things will settle down quite a bit. There will be less disparity among the exchanges and I'm hoping the loss of Gox will at least keep the other exchanges on their toes and help keep things above the level.
 
Yea, this is just a dark chapter in the whole scheme of things and I found that statement by coinbase/kraken/etc a VERY good move at a very good time. Especially now that MTGox is offline, I think that the final chapter is just about over and those with the MTGox blinders on will finally diversify to other exchanges and eventually restore confidence.

In other words.....



HODL!
:D
 
BTC-E at the moment:
2014-02-24_20-53-39.png


... and still dropping...

I just refreshed and it went down to $502 in a few seconds. Is this also related to that virus/malware that's stealing Bitcoins?
 
I don't get why so many people want GOX to die. If it goes down without people getting their money / btc out, its going to be a huge black eye for BTC and cause a lot of people to second guess using it.

GOX fucked up bad, but if they can pull it around and get people their money back and then quietly die as people stop using them that would be good. If they die with everyone's money / BTC, it will be very bad.
 
octoberasian said:
... and still dropping...

I just refreshed and it went down to $502 in a few seconds. Is this also related to that virus/malware that's stealing Bitcoins?
Click to expand...

Sub-$500 now...

I don't know of any virus/malware stealing bitcoins. There was the transaction malleability bug, but I have my own doubts as to whether that was a bug that allowed the theft of bitcoins and even if it was, whether it is widespread or limited to places like Gox which had heavily customized the wallet and possibly allowed the issue to be far more exploitable.
 
DracoNB said:
I don't get why so many people want GOX to die. If it goes down without people getting their money / btc out, its going to be a huge black eye for BTC and cause a lot of people to second guess using it.

GOX fucked up bad, but if they can pull it around and get people their money back and then quietly die as people stop using them that would be good. If they die with everyone's money / BTC, it will be very bad.
Click to expand...

Hopefully, other better and bigger (and more competent and trusted) exchanges will take over the hole left by Mt. Gox and establish a better reputation for this currency.

Also, documents from that blog post:
http://www.scribd.com/doc/209050732/MtGox-Situation-Crisis-Strategy-Draft

Someone un-censored one of the pages in the document:
Qwc2I1U.png
[/IMG]
 
Carbon_Rod said:
Sub-$500 now...

I don't know of any virus/malware stealing bitcoins. There was the transaction malleability bug, but I have my own doubts as to whether that was a bug that allowed the theft of bitcoins and even if it was, whether it is widespread or limited to places like Gox which had heavily customized the wallet and possibly allowed the issue to be far more exploitable.
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It was posted in the AMD Graphics Card forum:
http://hardforum.com/showthread.php?p=1040651656#post1040651656
 
Ah.. well, thanks for that! That's now got me revisiting my plan to create a separate system just for wallets.
 
Yes, that's what I'd recommend. My wallet system is separate from my miners for this very reason. Any unknown/questionable wallets are installed in a VM.
 
Not really worried yet. I can hear the wolves already salivating and splooging on their keyboards at all of this cheap BTC. The price should go back up at some point.
 
Carbon_Rod said:
Ah.. well, thanks for that! That's now got me revisiting my plan to create a separate system just for wallets.
Click to expand...

That's what I do. All my wallets are on my iMac, while I have seen a couple Mac Bitcoin malware apps out there they seem less prevalent. Also means I basically only mine coins that have an OS X wallet. The Mac also runs the php management scripts and such, but other than that it doesn't mine or run other mining software.
 
jojo69 said:
because Gox has been an embarrassing cancer on bitcoin for far, far too long

I hope they find Karpeles floating in the harbor
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I'm guessing you didn't manage to read the rest of my post?

Wishing for all of these people to loose all their money/btc is going to hurt all crypto currencies because people will see how easily they can lose their savings.

Imagine how bad it would be for the dollar if Chase / BOA / whatever bank closed tomorrow.
 
DracoNB said:
I'm guessing you didn't manage to read the rest of my post?

Wishing for all of these people to loose all their money/btc is going to hurt all crypto currencies because people will see how easily they can lose their savings.

Imagine how bad it would be for the dollar if Chase / BOA / whatever bank closed tomorrow.
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I have no fear for crypto adoption, it is not a choice, it is coming, you can adopt it or get run over by it I don't really care either way. It is not some fragile baby that needs nurtured.

People absolutely need to learn that if they do not control their own private keys that they HAVE NO BITCOIN! A lot of people will have learned that today.
 
DracoNB said:
I'm guessing you didn't manage to read the rest of my post?

Wishing for all of these people to loose all their money/btc is going to hurt all crypto currencies because people will see how easily they can lose their savings.

Imagine how bad it would be for the dollar if Chase / BOA / whatever bank closed tomorrow.
Click to expand...

Well if everyone made a run on BofA tomorrow, they would be insolvent almost overnight (by design, I'm afraid...) Banks too are run on the faith of the people that their funds are safe.

However the main difference (and one which is reiterated often) between cryptos and banks is that cryptos are not yet government regulated and so any losses sustained are not insured. Government insures deposits with banks up to a certain amount to ensure there is enough faith in the banks so that bank runs don't cause widespread chaos.

Because I guarantee you if bank accounts were not FDIC insured, there would be a lot fewer people depositing with them, especially those who remember the bank runs of old (akin to the run on Mt Gox that doomed them).
 
jojo69 said:
I have no fear for crypto adoption, it is not a choice, it is coming, you can adopt it or get run over by it I don't really care either way. It is not some fragile baby that needs nurtured.

People absolutely need to learn that if they do not control their own private keys that they HAVE NO BITCOIN! A lot of people will have learned that today.
Click to expand...

I never said it was going to doom it, I was saying its going to hurt adoption and set it back. No one wants to run the risk of losing all their money overnight.
 
DracoNB said:
I never said it was going to doom it, I was saying its going to hurt adoption and set it back. No one wants to run the risk of losing all their money overnight.
Click to expand...

then they should figure out cold storage and the definition of counterparty risk
 
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