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Mt. Gox Disappears
Old 02-25-2014, 08:28 AM   #1
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Mt. Gox Disappears

Bitcoin has dropped in value from $1200 to $496. Was Mt. Gox really a mountain, or just a pebble?
Two sides to every story.

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What was once the world's largest trading platform for bitcoins is now a blank page.
The Bitcoin-trading website Mt.Gox was taken offline late Monday, putting at risk millions of dollars put there by investors who gambled on the digital currency.

The news frightened Bitcoin investors elsewhere, knocking the price down about 3% to $496 -- its lowest level since November.
For now, there's no telling what's behind the shutdown. However, an unverified document called "Crisis Strategy Draft" that is being circulated online claims Mt.Gox has lost 744,408 of its users bitcoins, worth nearly $367 million. It also claims Mt.Gox is planning to rebrand itself as Gox.
Mt.Gox has been mired in problems ever since Feb. 7, when it halted withdrawals from its trading accounts. The company's computer programmers hadn't accounted for a quirk in the way Bitcoin works, allowing cyber attackers to dupe Mt.Gox with a scheme resembling receipt fraud. When Mt.Gox discovered it was under attack, it stopped any investors from pulling their money out of their trading platform -- but it has yet to allow them access to their money.
Mt.Gox site disappears, Bitcoin future in doubt - Feb. 25, 2014

Might want to take a look at Bitstamp... another exchange that has had some problems, but is still trading.

A more extensive "warning" and explanation here...

http://www.marketwatch.com/story/reg...MW_latest_news

and one more.... malware "Pony" stealing bitcoin wallets.
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Old 02-25-2014, 09:46 AM   #2
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Once again, it would seem that my dinosaur tendencies have been to my advantage. I try to avoid technologies and "new" concepts that I can't explain to a 4th grader. Thus, I don't own an I-phone (nor and I-pod), nor have I any interest in Bitcoin. I'm sure my Luddite ways have cost me (and probably more than money) but I don't feel deprived nearly as often as I feel relieved. YMMV
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Old 02-25-2014, 09:49 AM   #3
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MSNBC stated that Mt. Gox represented 6% of the bitcoin limit of 21 million.
It appears that this is a situation in flux, and may be an ongoing story for the foreseeable future.
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Old 02-25-2014, 09:53 AM   #4
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Originally Posted by Koolau View Post
Once again, it would seem that my dinosaur tendencies have been to my advantage. I try to avoid technologies and "new" concepts that I can't explain to a 4th grader. Thus, I don't own an I-phone (nor and I-pod), nor have I any interest in Bitcoin. I'm sure my Luddite ways have cost me (and probably more than money) but I don't feel deprived nearly as often as I feel relieved. YMMV
Well, the 4th grader probably knows more about new tech than we do...

As for tulips bitcoin, no thanks!
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Old 02-25-2014, 10:04 AM   #5
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What the heck is bitcoin, gox? And why should I care?
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Old 02-25-2014, 10:11 AM   #6
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Not to worry, I used my Bitcoins to buy a bridge in Brooklyn. I collect a toll from everybody who crosses it. I expect the first check any day now.
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Old 02-25-2014, 10:21 AM   #7
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Old 02-25-2014, 11:07 AM   #8
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Here is another bitcoin article on Marketwatch. It contains some rather heartrendering accounts of the enormous losses some people have apparently suffered. I certainly can sympathize, but my primary reaction is, "What on earth were these people thinking?".

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Over at Reddit, there were plenty of battle scars and tales of woe at the ‘Gox horror story thread: How much did you lose?’ One user of the social platform, calling himself goxloser posted this several hours ago: “I am the biggest loser at 4700+BTC, offering up a screenshot of his account a few days ago. “I don’t know how dying feels, but I’m pretty sure that’s how I feel now,” goxloser said to responses estimating he lost over $2 million worth of bitcoin. (MarketWatch can’t verify the stories or identities of the Reddit users.)

Another Reddit user with the handle ebass, said that “144 BTC and 100 were entrusted to me by a friend because he wanted to get into cryptocurrency. I haven’t told him what happened just now though he has been updated all this while. I don’t know how to.”

User mtreme reportedly invested his life savings — $357,000 — in bitcoin via Mt. Gox, to try and build for his son’s education fund, he said, while another also spoke of losing college-tuition money. And lots of others talked about desperate and futile attempts to get their bitcoins out when they started realizing something might be wrong, garnering sympathy, but also plenty of “What were you thinking,” type comments from the Reddit crowd.
Mt. Gox's hidden note hints at hopes for acquisition amid tales of bitcoin losses - The Tell - MarketWatch
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Old 02-25-2014, 11:10 AM   #9
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What the heck is bitcoin, gox? And why should I care?
It's a virtual currency that has gained popularity over the past few years. MtGox was the largest online exchange for bitcoins. These exchanges allow you to convert bitcoins to and from real money.

MtGox was originally a card trading site associated with the Magic card game. MtGox stands for Magic the Gathering online exchange.
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Old 02-25-2014, 11:12 AM   #10
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Considering the fact I haven't even started to pay bills online yet, there will be many more casualties before I am one of them.
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Old 02-25-2014, 11:32 AM   #11
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I feel like I need to get in on this quickly and ge a small press and start stamping out copper-plated zinc bitcons and selling them on eBay.
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Old 02-25-2014, 11:39 AM   #12
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Mt. Gox wasn't the largest when it closed down. It's been struggling for a while, and the recently exposed security problems certainly didn't help it. A classic run on the bank.
People that kept their bitcoins at home are safe.

The supposed strategy doc has some interesting details (if true)
MtGox Situation: Crisis Strategy Draft
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Old 02-25-2014, 11:41 AM   #13
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P.T. Barnum's words of wisdom strike again. Morons.
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Old 02-25-2014, 11:58 AM   #14
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Mt. Gox wasn't the largest when it closed down. It's been struggling for a while, and the recently exposed security problems certainly didn't help it. A classic run on the bank.
People that kept their bitcoins at home are safe.

The supposed strategy doc has some interesting details (if true)
MtGox Situation: Crisis Strategy Draft
I did not realize they had previously fallen on hard times.
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Old 02-25-2014, 12:12 PM   #15
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I think that most people who have Bitcoins don't really understand what they bought and well definitely not understand where their money went once it disappears.
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Old 02-25-2014, 12:14 PM   #16
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The supposed strategy doc has some interesting details (if true)
This strategy document may be fake, but if it's authentic Mt Gox is toast. It says that practically all the bitcoins that were entrusted to it have been stolen. If Mt Gox declared bankruptcy and liquidated, it would be able to pay off creditors at about 19 cents on the dollar. And that's using extremely generous accounting - the strategy doc lists the bitcoin liabilities as being worth only the current exchange rate on the Mt Gox site, not the higher price available on unhacked exchanges.

So the strategy doc envisions a future where its massive incompetence is forgiven and investors continue to use the site, generating profits that will eventually allow it to repay its debts. Color me skeptical. If I were a Mt Gox customer, I would never trust the site again.
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Old 02-25-2014, 12:39 PM   #17
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Mt. Gox? Gone? O Noes!

How will I get by without the premiere site for trading "Magic: The Gathering" cards and BitCoins? Maybe I should have asked earlier, but all the Bitcoin deposits there ARE FDIC insured, right? And what of the Winklevii?

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Old 02-25-2014, 01:44 PM   #18
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Clearly, the timing is right to buy Bitcoin. Double-down!
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Old 02-25-2014, 08:59 PM   #19
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Clearly, the timing is right to buy Bitcoin. Double-down!
Sounds like a buying opportunity. I wonder which Vanguard fund invests in this?
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Old 02-25-2014, 09:12 PM   #20
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On December 12th 2013 I sent the following message to Mt Gox after finally receiving notification from them, after waiting 12 days, that my account had been approved:

"Seeing as how it took you 12 days to verify my account and I missed the opportunity I was hoping to take advantage of, I will not be opening an account with you. There is no way with your current level of performance that one could be comfortable that they would have access to their funds when desired."

I had intended to purchase 2 bitcoins which at the time were approx $600 each, then they went to $900 each in 10 days.

It was my intent to dip my toe in and learn more about how they work.

Glad I didn't get greedy.
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