Bitcoin Exchange Mt. Gox Is Finished

Tyler Durden's picture




 

Just in case one was wondering for a reason not to take "Magic: The Gathering Online Exchange" too seriously, here is the latest news that has largely slammed the coffin shut on what was once the largest Bitcoin exchange. From MtGox:

Dear MtGox Customers,

 

Thank you for your patience this week while we are working on re-initiating bitcoin withdrawals. In addition to the technical issue, this week we have experienced some security problems, and as a result we had to relocate MtGox to our previous office building in Shibuya. The move, combined with some other security and technical challenges, pushed back our progress.

 

As much as we didn’t want to only provide an “update on an update”, this is the current status. We are committed to solving this issue and will provide more information as soon as possible to keep everyone in the loop.

 

We are very sorry for the delays and deeply appreciate your kind understanding and continuous support.

 

Best regards,

 

MtGox Team

This is what a dying virtual currency exchange looks like...

 

In summary, all BTC withdrawals re-frozen for another week...blamed on a small group of protesters hanging around out front of the offices looking for their money... another day in bitcoin land...

As we noted when they last froze withdrawals:

Bitcoin is no longer in Phase 1 of its evolutionary cycle. I believe Phase 2 for Bitcoin began in earnest back in November 2013, when the Senate Committee on Homeland Security and Governmental Affairs held its first hearings on the topic. Those hearings made it clear that, at least for the moment, no significant roadblocks would be put in place to prevent people from transacting with one another using the crypto-currency. Phase 2 also saw the largest Bitcoin investment to-date, a $25 million infusion led by Silicon Valley VC firm Andreessen Horowitz, as well as acceptance by major U.S. retailers, with Overstock being the most significant. Bitcoin is becoming serious, and serious means serious accountability.

 

As a free market currency, the market will decide the products required to keep the Bitcoin protocol open and functioning to its highest potential. The disruption of Mt. Gox will be another test for Bitcoin. A test which certainly represents a psychological challenge, but probably not much more than that. Bitcoin will survive and come out of this stronger than it was before, just as it has done so many times in the past. However, I do not believe Mt. Gox will be so fortunate.

 

For Mt. Gox though, I think it’s pretty much game over.

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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Thu, 02/20/2014 - 12:45 | 4457697 BTCTalks
BTCTalks's picture

Not a dying virtual currency.  A dying virtual currency exchange.  Still trading $580 elsewhere.

Thu, 02/20/2014 - 12:46 | 4457704 fonestar
fonestar's picture

FUCK YEAH!!  BITCOIN WE LOVE YOU!!

Thu, 02/20/2014 - 12:49 | 4457713 Ignatius
Ignatius's picture

Here already?  You were tipped off.

Thu, 02/20/2014 - 12:51 | 4457722 AllThatGlitters
AllThatGlitters's picture

I'll buy my first bitcoin (or some other virtual currency) as soon as Fonestar turns bearish.

Thu, 02/20/2014 - 12:53 | 4457740 fonestar
fonestar's picture

Well you could call fonestar bearish in the near-term.  Looks like Bitcoin should go down into $400s - $500s before something sends it rallying again.

Thu, 02/20/2014 - 12:56 | 4457750 EscapeKey
EscapeKey's picture

Look, this is stupid. Bitcoin is not selling for $100, or whatever. That is the quoted price on MtGox because they don't deliver, and have no trust - on virtually every other exchange, you're looking at paying around the $500 mark.

 

$580 atm.

http://preev.com/

 

Thu, 02/20/2014 - 13:01 | 4457796 Groundhog Day
Groundhog Day's picture

Is their an arbitrage somewhere in shit coin

Thu, 02/20/2014 - 13:08 | 4457838 EscapeKey
EscapeKey's picture

Yeah, just as there's an arbitrage in buying physical gold on Honest Joe's Gold Exchange. They appear to selling totally legit gold at $240/oz. You can then buy this, and sell it on just about anywhere else.

But of course, Honest Joe's doesn't allow you to actually cash out your gold at present time. Please check back later.

 

Thu, 02/20/2014 - 13:15 | 4457886 BaBaBouy
BaBaBouy's picture

I Hope Some At Least Heeded The Warnings HERE, Months Ago.

USD HardDrive Virtual Fiat Currency Will One Day Will Also Have Its MT-GOX Day...

Thu, 02/20/2014 - 13:42 | 4458017 Stackers
Stackers's picture

Small group of protestors at MtGox ?

 

It was 2 guys in a lawn chair

http://www.businessinsider.com/mtgox-moved-2014-2

 

MtGox got screwed out of double sending bitcoins because their exchange software was flawed. They now do not have the bitcoins to cover customer accounts. So they froze withdraws of bitcoin. What people are trading on MtGox are Goxcoins, because it does not have the BTC to send out into the blockchain upon request. They are probably trying to quietly buy bitcoins from miners and other exchanges in a last ditch effort to remain solvent. They've lost market confidence at this point though, so stick a fork in 'em.

Thu, 02/20/2014 - 13:48 | 4458095 Pladizow
Thu, 02/20/2014 - 14:16 | 4458286 BaBaBouy
BaBaBouy's picture

Anyone Know???

Whats The MELT-VALUE Of The BTC Mining Servers Today???

Thu, 02/20/2014 - 14:25 | 4458369 wallstreetapost...
wallstreetaposteriori's picture

HAHAHAHHAHAAHHAHAHHA......FONESTAR.  

Thu, 02/20/2014 - 14:44 | 4458504 layman_please
layman_please's picture

whoever can get their bitcoins out of mtgox is making a killing. considered there is no regulation on bitcoin exchanges, guess who can profit most of this arbitrage? i'm sure they have to move again soon.

Thu, 02/20/2014 - 15:26 | 4458698 fonestar
fonestar's picture

Come to think of it, has Zerohedge ever posted any bearish articles on Bitcoin?

Thu, 02/20/2014 - 15:49 | 4458867 NidStyles
NidStyles's picture

They don't need to, that is why the rest of us are here. To make sure everyone is aware that it's a scam.

Thu, 02/20/2014 - 15:54 | 4458893 fonestar
fonestar's picture

It seems that you are doing a great job of just the opposite, letting everyone know you're morons as Bitcoin continues its heroic and parabolic victories against nationalist fiat!!

Thu, 02/20/2014 - 15:58 | 4458908 whatthecurtains
whatthecurtains's picture

Exchanging one worthless fiat currency for another is no fucking victory

Thu, 02/20/2014 - 17:12 | 4459228 fonestar
fonestar's picture

Learn what fiat means moron.

Thu, 02/20/2014 - 23:17 | 4460630 mjcOH1
mjcOH1's picture

I do believe Mt Gox had a better business model being a Magic card middle-man.   The cards had a BTU value.

Thu, 02/20/2014 - 17:12 | 4459231 fonestar
fonestar's picture

Learn what fiat means moron.

Thu, 02/20/2014 - 18:33 | 4459527 akak
akak's picture

Learn not to spastically pound the "Enter" key like a meth-addled monkey with ADD.

Or don't they teach that skill in troll school?

 

Thu, 02/20/2014 - 16:28 | 4459043 NidStyles
NidStyles's picture

Is that why BTC still has not recovered from the last smack down?

Thu, 02/20/2014 - 17:13 | 4459238 fonestar
fonestar's picture

BTC does not get smacked down.  BTC lays the smack down.

Fri, 02/21/2014 - 00:37 | 4460824 prains
prains's picture

fools rush in.....bonestar....you love a good boning!!

Thu, 02/20/2014 - 15:57 | 4458901 zaphod
zaphod's picture

If MtGox happened with dollars or yen, the central bank would print money out of thin air to make customers whole. In the processes robbing from everyone else.

But in Bitcoin world there is no central bank to print. Instead customers who were dumb enough to leave funds with MtGox are the ones who lose there money, while everyone not involved remains uneffected. 

That is how it is suppose to work, that is how it worked with banks under a gold standard. 

TL;DR The bitcoin system is less of a scam than fiat and this MtGox situation demonstrates that.

Thu, 02/20/2014 - 16:00 | 4458918 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

OMG NOOOOOOOOOOOOOOOOOOO!!!! THE PRICE IS ALL THE WAY DOWN TO MID-NOVEMBER LAST YEAR!!!!!!!!!!!!!!!!

Thu, 02/20/2014 - 16:27 | 4459040 dogbreath
dogbreath's picture

<----  have never traded BTC in any way

<-----  are a BTC Trader/user

Thu, 02/20/2014 - 17:14 | 4459247 fonestar
fonestar's picture

Your post (as is your reasoning) is squiggled.

Thu, 02/20/2014 - 16:29 | 4459049 NidStyles
NidStyles's picture

Sorry, the first thing that says it is a scam is the fact that no one actually knows who created it.

Thu, 02/20/2014 - 17:57 | 4459402 Pure Evil
Pure Evil's picture

Saying something is less of a scam than something else is like voting for a politician you think is less evil than another one.

There is no lesser of two evils, just like a scam is a scam.

Fri, 02/21/2014 - 00:16 | 4460785 NidStyles
NidStyles's picture

Nowhere have I contested that.

Thu, 02/20/2014 - 15:35 | 4458789 Oldballplayer
Oldballplayer's picture

Ah huh...they cannot get the coins off the exchange. THAT is the issue.

Thu, 02/20/2014 - 17:49 | 4459370 Miffed Microbio...
Miffed Microbiologist's picture

Now wait just one minute wallstreetp, I actually had a work associate put a sizable part of his retirement in Beenie Babies so have some frigging sympathy for crying out loud. He actually went on disability later with chronic diarrhea due to stress. We must not take joy in another's suffering..... Oh hell, I just can't do this, I'm laughing so hard I may pee myself.

Miffed;-)

Thu, 02/20/2014 - 15:08 | 4458660 EscapeKey
EscapeKey's picture

About the same as the meltdown value of 5,000 Microsoft Office 2013 DVDs. Or 2,000,000 Microsoft Windows license code paperslips.

But they might not have any worth in your universe, either. Millions of business managers would tend to disagree, however.

Thu, 02/20/2014 - 13:45 | 4458036 redpill
redpill's picture

As long as people expect to be able to freely transfer their bitcoins to dollars and vice versa, it will be a very volatile and vulnerable system.  The only way Bitcoin would work is if it got beyond the need for such large centralized exchanges that by definition have an identifiable physical location and thus not out of reach of government.  Unfortunately, government will never allow Bitcoin to get to that point, and if anything it will gladly play along with a little charade of letting people think it's gaining momentum all the while ensuring they get their hands on every bit of personal information that goes through these exchanges.

Thu, 02/20/2014 - 14:17 | 4458295 wintermute
wintermute's picture

peer-to-peer decentralized exchanges are being developed.

Thu, 02/20/2014 - 14:30 | 4458395 Jack Napier
Jack Napier's picture

Meanwhile the spooks are secretly very happy that people will have the false notion that they are one-upping the man with what they perceive to be their own free will, while the powers pretend to fight against a digital currency that is in actuality the slavery to the grid and the substitute for real money which they were going for all along.

Thu, 02/20/2014 - 14:51 | 4458551 Supernova Born
Supernova Born's picture

Yup.

Update to Windows 8.1 and then try to turn off Wifi (or new Android updates).

 

Thu, 02/20/2014 - 13:09 | 4457839 EscapeKey
EscapeKey's picture

my first double post! how exciting!

Thu, 02/20/2014 - 14:04 | 4458210 firstdivision
firstdivision's picture

You got Mt Goxed

Thu, 02/20/2014 - 14:08 | 4458233 fonestar
fonestar's picture

 

 

So help fonestar understand this.... 

Silver goes from $12 - $21 in five years.

Bitcoin goes from $0 - $500 in five years.

 

So fonestar should get rid of his Bitcoin?

Thu, 02/20/2014 - 14:14 | 4458262 jcaz
jcaz's picture

You only have one?   I thought it was three.....

Thu, 02/20/2014 - 14:15 | 4458270 fonestar
fonestar's picture

One what?

Thu, 02/20/2014 - 14:21 | 4458326 HyBrasilian
HyBrasilian's picture

molecule in your brain ~ which happens to be located in your ass...

Thu, 02/20/2014 - 14:33 | 4458442 fonestar
fonestar's picture

Reccomend you read up on the divisibility of Bitcoin.  You'll need to figure out how many satoshi you can get for your copper pipes some day.

Thu, 02/20/2014 - 15:20 | 4458710 HyBrasilian
HyBrasilian's picture

Frankly ~ I'm more interested in my copper pipes [especially the ones LESS buried, uninsulated, &/or exposed to this BRUTALLY COLD winter]...

~~~

But I'm sure YOU'RE so clever [in the BASEMENT you live in], that you'd already advised your mom to upgrade... [Which will prevent your 'hotpockets eating' SHIT from busting loose & spilling onto your keyboard, & will ensure you have enough FARADAY CAGE wire from nuking your 'wallet']...

Thanks MOM!

Thu, 02/20/2014 - 15:33 | 4458771 EscapeKey
EscapeKey's picture

Perhaps you should spend more time playing online XBox games, rather than attempting to engaging in debate? Your juvenile selection of words and sentence construction frankly fit right in.

OMG U FAGGOT I SLEPT WITH UR MOM

Fucking pathetic.

Thu, 02/20/2014 - 15:41 | 4458788 HyBrasilian
HyBrasilian's picture

@ EK ~ Got anything relevant to add on the viability of BITCOIN & how it's ABSOLUTELY the future we should inWest the accumulated, & fractionally represented [notwithstanding 'technical' hurdles] holdings of the 'LABOR' that we've produced over the past "X" years?... [mother's notwithstanding]...

~~~

Here I was HOPING somebody would :-(

Thu, 02/20/2014 - 15:41 | 4458828 fonestar
fonestar's picture

IN THE BLOCKCHAIN WE TRUST

Do NOT follow this link or you will be banned from the site!