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Bitcoin Crashes 25% As Mt.Gox Halts Withdrawals
Mt.Gox, the largest exchange for the online digital currency, was forced to halt withdrawals (but not trading) this morning. Due to an increase in withdrawal requests the exchange's systems had technical problems and in order "to understand the issue thoroughly, the system must be in static state," they reported. The exchange said it would resolve the problem as soon as possible and "apologize[d] for the sudden short notice." Interestingly this seemed to rapidly remove Mt.Gox's modest premium to the other exchanges and bring them all back inline around $700 as the price recovered.
As Max Pelham noted (Coinwatch),
"People will be leaving Mt. Gox either way, the trust isn't already very high, and with this now people are going to trust them even less,"
"I think Mt. Gox is going to lose relevance even more now, they're not very forthcoming in their public relations, their technical problems and their withdrawal problems aren't going away. Even if they fix it now, the withdrawal problem still remains with USD and Euro withdrawals."
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Wow, Fonestar asked for Articles on BitCoins yesterday and now weve got some !
But what about MaxCoin? (Disclaimer: I love Keiser's show but man is he up his own ass lately)
nah, i will stay with dogcoins, thx
I switched off. Fucking BTC pompoming all day every day. MAX....ITS A FUCKING DIGIT ON A SCREEN.....WAKE ME UP WHEN ITS BACKED BY PM's!!!!!!!!!!!!!!!!!!!!
Well whatdidjaexpect, Chief Keiser used to be a paper pusher.
Old dogs and new tricks or something like that...
The only thing you can really be sure is "backed" by PMs - is the physical you hold.
so great this site turned from a trader site to a stacker loony bin... do you even trade?
I think so, but whether you think so would depend on your definition of "trading."
What I don't do is day-trade or speculate in paper or electronic markets.
What I do, is engage in a long-term strategy of moving from currently valuable assets that I feel have a bleak future (like the dollar), into assets that I feel have a more viable long-term prospect for maintaining or increasing in value (like PMs and productive farmland).
If that makes me crazy - so be it.
yeah long termers that didn't sell at the obvious peak at 1900 and are now bagholders who convince themselves they are still in the game but got left behind
I built a new gold stack on the side the past 6 months from selling the upside of bitcoin into the downside of gold.. it is ridiculous for the snotty stackers here that think so well of themselves that they missed that trade staring in their faces the WHOLE YEAR
hey, this may be the one news item that is Bullish GOLD !!!!!!
Reality is bullish on gold. Unfortunately that doesn't mean much these days...
Still not at 0. Huh.
Qute fonestar in 3.. 2.. 1..
What am I saying, we love ya fone.
Love to laugh at The Fonestar"...
You have been Bitcoined. Thank you for playing. Please try again.
And no, Sir, you can't buy more credits with tulips.
Fiat crashing in fiat terms.
Stocks up Bitcoin down.
The terrorists are losing!!! 'murica!!!!
Fuck bitcoin.
Remember everyone that technology is what allows the bankers to do what they do in the first place. We need to simplify, to decomplexify. All digital technology can be co-opted by the bankers.
Only gold is both simple and robust enough to restore integrity to the financial system.
Gold . . . xrays at the airport. Simply that. It eases its own confiscation.
Yes, that is why as long as BTC stays around, even if volatile, I want to have some. The amount of gold you can (safely) take out at the airport is pretty small (I have some small experience taking smaller and larger amounts of gold onto the planes). A BTC wallet can "carry" much more wealth, even at the risk of lower (but higher too) prices.
The problem is, unless you have an arrangment in advance, it would be hard to sell those bitcoins (when dealing with $100,000+) for dollars (or whichever currency) on the other side, without going through an exchange and bank that both require KYC and AML compliance. The governments will know that you bypassed capital controls if you do that.
That is not to say it is useless for this purpose, it just means you need to sell off the bitcoins off of the exchanges.
Excellent point. What we have to hope for is that BTC catches on in many more places. If the BTC markets get big enough, then more merchants and more exchanges (of one sort or another perhaps) would arise.
EDIT:
Hawala might fit into the equation here as well....
The 'non-exchange' approach is best shown by localbitcoins.com (there are others).
You can buy/sell into a local fiat currency without KYC or AML issues that way. And a lot faster than via the well known exchanges.
Exhanges ADD counterparty risk to BTC - so they may be convenient, but as MtGox shows, they are risky. Even localbitcoins.com introduces counterparty risk for the duration of time that you have them hold your Bitcoins - either in their wallet or their escrow.
As a result, you should not leave any substantial amount of currency (BTC or national fiat) in the hands of a third party like an exchange. That is the same as if you are stupid enough to leave a large amount of national currency in a TBTF bank (you will get Cyprused)
If you dont hold it, you dont control it (not 'own') is true, Au and Ag lost in a boating accident, Bitcoin in a Brain Wallet (or similiar offline storage), leaves the asset under your control and without counter party risk. The only risk(s) remaining are personal security issues, and the systemic risk that the 'value' of these assets is dependent on the collective belief of the community at large.
Not really: https://www.secondmarket.com/education/sell-bitcoin-secondmarket
Only if you enter countries through airports. I've never had my sailboat scanned by any country, including the US.
Some of us get seasick more easily than others... ;)
Try Motion eaze from walmart. One small drop behind each ear works wonders and it contains no drugs. My landlubber wife from Bolivia uses it and it really stops seasickness dead in its tracks
Ahh, mi esposa es una Andina tambien... But, put my wife on a sailboat for a long trip...: "Estas loco?!"
Las Andinas saben cojer con felicidad.
Roger that, you bet. Even with just one kid, I can confirm that!
When I moved from my old house to my new house, I brought 52 1-ounce gold coins through the airport. The person at the x-ray machine called her supervisor over, but then they let me pass without any further questions. I had receipts for them all in my possession. So, yes, they do x-ray, but so what?
That may change in the future. 52 1-ounce coins are worth some $65,000. The Cops That Be have seized sums MUCH smaller than that on the flimsiest excuses, even re domestic flights, even on the INTERSTATE HIGHWAYS!
For me, the idea is to get them out on planes going to OTHER countries. If you have 52 oz of gold, then you MUST DECLARE it on a special Customs form (plan on taking at least 45 minutes at the outbound airport to do that).
Don't declare you monetary instruments (that includes gold at market value, NOT face value) over $10,000? They catch you, you go to jail.
EDIT:
TSA may get other instructions and powers in the future...
I agree that international travel would carry much more risks. I don't know the particulars, but I'm sure there are a lot more laws and penalties involved with taking a large amount of gold out of any country. I would never attempt an international transfer that way.
DoChen, not wanting to be a pain, but do you have any substancial information on this. I was trying to ascertain exactly what the limitations may be. As I understood, investment grade coins, (a certain purity, and on a list of recognized coins), so not have to be declared. Well, this is for VAT purposes. Then again, I'm sure this is a country to country basis. But still it seems a little murky to me.
If there is a cash equivilant limitation. It would be helpful to know, if I am under or over.
*edit: Apologies, just read that last part again. Still, as I understood, investment coins are treated somewhat different to bullion.
http://www.nestmann.com/u-s-treasury-we-wont-tell-you-whats-reportable
U.S. Customs Form 6059B:
15. If you are a U.S. resident, print the total value of all goods (including commercial merchandise) you or any family members traveling with you have purchased or acquired abroad (including gifts for someone else, but not items mailed to the United States) and are bringing into the United States.
Note: U.S. residents are normally entitled to a duty-free exemption of $800 on items accompanying them.
FinCen Form 105:
Currency: The coin and paper money of the United States or any other country that is (1) designated as legal tender and that (2) circulates and (3) is customarily accepted as a medium of exchange in the country of issuance.
Monetary Instruments— (1) Coin or currency of the United States or of any other country, (2) traveler’s checks in any form, (3) negotiable instruments (including checks, promissory notes, and money orders) in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title thereto passes upon delivery, (4) incomplete instruments (including checks, promissory notes, and money orders) that are signed but on which the name of the payee has been omitted, and (5) securities or stock in bearer form or otherwise in such form that title thereto passes upon delivery. Monetary instruments do not include (i) checks or money orders made payable to the order of a named person which have not been endorsed or which bear restrictive endorsements, (ii) warehouse receipts, or (iii) bills of lading.
Gold is a good, not a currency.
Check out VK-Ultra, if you're looking to restore integrity : http://ianamarchbank.blogspot.com/
Coin clipping is technology?
decomplexify
Ding ding ding - we have a winner!!!
YOU DON'T OWN IT, IF YOU DON'T HOLD IT!
BitCoin Exposed
All yer bitcoin, it now belongs to us - thanks.
Sincerely,
NSA - FBI - CIA
p.s. tomorrow CNN will report that China & Iran hacked it
My only question is, what is going to happen when they 're-open'
"what is going to happen when they 're-open'"
There is enough confusion now that no one knows what will happen next. Perhaps they won't re-open at all. Everyone loses all the balances they have on Mt. Gox, but the other exchanges continue to operate. Bitcoin promoters tell the losers: "You were foolish to trust Mt. Gox. Everybody knew Mt. Gox was no good, blah, blah, blah, ..."
This scenario fits what I have been suspecting. Bitcoin as an abstract entity continues to survive, and its quoted value does not crash to zero, maybe even increases. However, most people who are involved lose what they have through various scams, mistakes, errors, or bad transactions.
The total market value of crypto currencies has been around $10 Billion for several months now. Does anyone really believe these exchanges have $10 Billion of liquidity to pay off the claims if everyone wanted to redeem? Mt. Gox probably had little or no liquidity, since they have not been paying off in "fiat" dollars for quite a while, and now can't even pay off in Bitcoins.
Lol, exchanges are only required to settle the balance of their customer's accounts. The trust/contract is that every ask can be matched to a coin that has been delivered to the exchange and every bid is matched by a corresponding fiat bank transfer. Mt.Gox is possibly in breach of that trust.
The tech is still very new and security breaches/scams are rife. It doesn't have to be frozen at the current level of development for all time. I've personally never lost any except some spare change to online gambling ;)
Bitcoin crash, SPX unch. Fucking good day at the office, eh Wall St.?
Cryptocurrencies are great for moving wealth anywhere, I would never store my wealth there however.
If you are dumb enough to store your wealth on the internet, you deserve what you get. Same can be said for banks. Just ask Cyprus.
Indeed. This stuff was `never supposed to happen'.
Exactly, when fraud is the status quo, possession is the law.
Yes, every McDonald's should have a safe with 1000 gold coins in it, in order to safely do business.
Your argument is silly. I am sure the CEO of McDonald's has some gold stashed in a safe. Besides, the original comment was about STORING wealth. It wasn't about transactions.
A McDonald's needs somewhere around $1 million in float to operate. How, in your "physical gold on hand only" system does that work?
I am talking about the small business owner, the franchisee who runs the local McDonald's, not corporate.
The people that were really screwed over with the Cyprus bail-ins were all the small businesses that lost their floats, or even what they got back, was frozen for quite some time.
People aren't bringing hamburgers they made at home into McDonalds to sell them either..
Thats what people ARE doing at BTC exchanges.
Dear Mr and Mrs. Gox.
Please get younz (I'm learning Eastern US languages) selves a new tech guy.
A non alcoholic this time.
Sincerely,
Q99X2
Protest at MtGox Offices - 5 to 7th February 2014, Tokyo, Japan.
I bought bitcoin at $800
I'm buying in now because it will rally
That's great!
Now the ponzi can continue!
With your purchase, they can pay off someone higher up in the ponzi who wants out.
Not if he sells them on MTGOX.
virtual bank run
This reminds me of another time Mt. Gox crashed. Rumors circulated on message boards that 5th level wizard cards were not rare. All the holders of this "currency" were shaken and normalcy didn't return to the market until mom bought more Hot Pockets. I think history is repeating itself.
From the way back machine:
Blame it on Mt. Gox
HA a Bitcoin bail in!
PAGING FALESTAR
He will be here shortly telling us how this crash doesn't matter since he bought at $50. Then he will tell everybody to buy more at these great prices like he did when it was over $1000.
Yes, fonestar is here.
Down 50% from its high and with no excuse of manipulation. How do you explain that?
Lose of utility. These things called fundamentals. First, China banned Bitcoin for purchases, banned third party payment services from using them, and banned banks from investing in them.
Now, MTGOX, which has always been hard to get money out of, and which was pulling bitcoin prices up relative to all other exchanges, has shutdown withdrawals for an undetermined amount of time, and who knows what it will be like afterwards.
I'm not sure it had much utility to begin with. Sure it had potential to have great utility. Speculation drove it up over $1000. Reality is driving it back down. If I "mined" or bought owned a lot of cheap bitcoins, I would be looking to unload soon.
Schadenfreude.
http://bit.ly/1aDH4Q7
to the m0000000N
It will take some time to find the "true" value.
Bernanke now has something better: BenCoins.
buy! buy!! buy!!! You can trust Ben!
But apple also approved doggy style coin buy dogecoin quick next week we are shorting pussycoin
I never did like Big Power Apple...
O no, :( I know this would and will happen again and again , the powers just don't want this in free hands, if anything the modle may be used but trust assuard it will be used by the powers and not in free hands
Yeah, that's a confidence builder....
Bitcoin 2.0 will be a big improvement!
Will BTC 2 come out this year or next?
Bitcoin 2.0: backed by the Fed with promises of a stable rate of inflation. People will love it!
"If man reaches into pocket and nothing there, does he own bitcoin?"
~ Confucius
Confucius say, "Man who circumcised, always going off half-cocked".
AnAnonfucius say: "Is the eternal duplicitous blobbing-up nature of US 'american' bitcoinism the mattering thing?"
AnAnonfucius, squatting Google Glasshole® of the Chinese Communautist Party Ministry of Truth, say: "This propaganda article only exists to try and hide that the roadside effort does not come the government. It is organic to a Chinese citizenism society. It comes from within, after gluttoonous consumption at JKC."
See, It's exactly like a currency in the bank.
"If you don't hold it...."
YellenCoin is where itz at bitches.
I made bigger percentage of profit off a bitcoin then I have off my stupid 401k.
You eventually run out of bigger fools.
bitcoin takes a shitcoin
time to find something else to trade - there's only a billion choices
LOL, isn't this an article you'd expect to see on the unbiast USA TODAY or BLOOMBERG?
unbiast? really?
Sure, its the opposite of byist.
Bitcoin Price Plunges as Mt. Gox Exchange Halts Activity [Bloomberg]
Mt. Gox Halts Bitcoin Withdrawals — When Will it Reopen? [Barrons]
Bitcoin price plunges as major exchange halts withdrawals [CNN]I wonder who really owns Bitcoin. Someone must.
Bitcoin is going to join Enron's special purpose entities on Milky Way.
Bitcoin's Lehman Brothers moment.
Gox's price premium has created a huge arbitrage incentive. That's why they have so many withdrawals. A blind man could see it. Who wouldn't want to make > 10% on their money every few weeks at a minimal level of risk?
Fonestar you ignorant slut, it's a good thing I never believed your lies.
I would have had to Taken you.
The only way they can fund withdrawls in currency is to find people to buy what is being redeemed(new suckers). I am sure when there are no buyers, the risk of redemptions becomes much too high. Something like a $200 drop in price while they are looking for buyers could bankrupt them. Thus they shut it off. The same goes for any retailer using them. They expect instantaneous redemption or they end up taking too much risk. In the end everyone who stays invested in Bitcoins will likely lose it all. I imagine dozens of people are devising ways to crush it as we speak and it seems like it would be pretty easy to corner the market.
This is purely a 100% reaction by Mt Gox admins towhat was a "Run" on the Mt Gox system. They tried to disguise this as a system error.
What Bullshit, Hope it goes to $7.00 next.
As with all other Monies/Currencies for 1000's of years, the real word is LIQUIDITY, BTC exchanges do not and will not have it ever, on any scale.
Case Closed, implosion to follow
When btc delists competely and all you have left is a usb stick with random crap on it, call me.
On second thought, don't, I know enough imbeciles already.
LOL!!! The damage from the Mt. Gox fiasco is nothing compared to this:
http://www.businessweek.com/videos/2014-02-03/strange-bedfellows-usps-co...
This video is the best indicator I have seen yet that bitcon is, was, and always has been a tool of the government, and if not, it is doomed never the less.
Paging foneystar! Paging foneystar!
Link names, to accounts??? =/
BTC will either be regulated by governments or be banned by governments. Does this surprise anyone but the bitcoin fanboys?
This thread is hilarious...so much raging dickishness
It's not all that funny for the people who had money in Mt. Gox, and can't access their Bitcoins or fiat for a long time, maybe never, and might have lost it all.
Meanwhile, the pumpers will drive the official listed Bitcoin price back up to $800, which we all know is not the price you get if you want to sell, but the price chumps pay to get into the deal, and the promoters will explain that all is well with Bitcoin, but Mt. Gox was always a scam anyways, so you should buy into the latest exchange market, which is run by some anonymous guy on reddit named "ILoveBitcoin."
Well, I think you get the idea.
It's totally funny! Bitchcoin sucks.
Unreliable, shitty...on & on & on...it's for fuckin fools. How many comments do we need to review over the last 6 months? Some of these Shitcoin lovers became downright rude & having revealed an exaggerated sense of one's own importance or abilities in trading the bullshit! [compared to us "mere mortals" holding barbaric relics.
Fucked again! I don't recall any vaults holding any smoke & mirrors electronic vapor coins ever.
That's it! make a Bitchcoin flavored E cig! up in smoke...at least you can inhale it once before it is forever lost.
Keep buying that shitcoin...then go buy a poster of Snoden & hang it over you desk while you trade.
How many times do you need to get fucked?
How many times?
HOW MANY!!!!>???
hahahahaha!
http://www.youtube.com/watch?v=wnplgWkI6nM
Perhaps not "totally funny"....but surely kinda funny!!
If you can't touch it.....you don't own it.
I kinda kick myself for not getting on bitcoins when they were $50. I could have made cash in the short term but at the same time look at this circus. Mt.Gox locks up your coins and won't hand them over during a panic. Online wallet companies are starting to get hacked. It's 1s and 0s that I can't hold on to. It's meaningless. It's like they asked how they could make something that was more intangible and valueless than fiat and then made it..
I'll keep stacking my gold, silver, and ammunition.
The value of bitcoin is determinated by the confidence of bitcoin purchasers less a small commission to bitcoin sellers, whom will always have more bitcoin, I'm waiting for a fake bitcoin network to spring up and compete with the real bitcoin, who is to say which is more legit? THe sellers, they price bitcoin in whatever people are willing to give.
Wow, Mt.Gox...well it had to happen eventually..
http://btcjournal.com/content/history-being-made-bitcoins-first-bankrung...
We'll be better off without MtGox ... they have done nothing but cause dramas .... obviously it is the USA monetary controls that are being used by the PTB in US to niggle away best they can which will only fuck it for the Americans themselves.
Using Coinjar in Oz or even BTCe in Russia is smooth as silk.
I say good riddance - they are a hopelessly slow and closed shop we can do without.
Spewing I missed the dip due to timezone diff.
If you invested your life into this, short answer your dumb. But if you invested playmoney$ at what even lower price, this price variation is a joke. Stop acting like any noise is the premice of apocalypse. Darn!
Act like you know and stop bitching.
BitCrash, Bitchez!
Mirrors on the ceiling,
The pink champagne on ice
And she said, 'we are all just prisoners here, of our own device'
And in the master's chambers,
They gathered for the feast
They stab it with their steely knives,
But they just can't kill the beast
(h/t satoshi911)
I bet most people dissing Bitcoin actually have never made a Bitcoin transaction. It is like people dissing Google without ever having made a websearch. Or dissing email without ever having used it. I've used Bitcoin and it has given me a taste for freedom I've never experienced before. The freedom to transact with whomever I want wherever, instantly, securely and without intermediaries like banks. Yes it is volatile but you can't expect a 5 year old to run a marathon either. I'll take the pain of being ridiculed and the volatility of bitcoin over having to deal with dirty fiat any day. And yes PMs are nice too, I've got some but all they do is sit there looking pretty.