Meltdown at MtGox. Update: 2/28 BANKRUPTCY FILED

[JeremyCT]

What I guess I don't understand is why so many people kept so much coin on account at MtGox. I'm new to this game, but even before the meltdown it was my understanding that best practice was to keep your coins in your own wallet and not in someone else's.

The other part I don't get is why so many people did business with them. I see references in the archives to them being "shady" long before the poop hit the spinning blades. What was it that made them so popular despite that reputation?

 

[ninjacore]

I think their exchange rates were always higher than the norm, so it enticed people to trade their altcoins (and fiat?) there.

 

[ZL1]

What I guess I don't understand is why so many people kept so much coin on account at MtGox. I'm new to this game, but even before the meltdown it was my understanding that best practice was to keep your coins in your own wallet and not in someone else's.

The other part I don't get is why so many people did business with them. I see references in the archives to them being "shady" long before the poop hit the spinning blades. What was it that made them so popular despite that reputation?

first ones simple, day traders, some ppl make more than miners by playing the market
2nd though eludes me too, i guess they trusted them as being first and what not .. ?

 

[wagex]

their prices were always higher than everyone elses is probably why they had so many people on there, theres alot of people who dont even pay attention to the news they just zomg bitcoins merichplz

 

[BugFreak]

What I guess I don't understand is why so many people kept so much coin on account at MtGox. I'm new to this game, but even before the meltdown it was my understanding that best practice was to keep your coins in your own wallet and not in someone else's.

The other part I don't get is why so many people did business with them. I see references in the archives to them being "shady" long before the poop hit the spinning blades. What was it that made them so popular despite that reputation?

I'm with you. I just don't understand why people would leave so much in one spot. Day trading is one thing but leaving $200k+ in one spot, that is not secured or backed by anything, is just stupid. In some ways I feel for the people that lost their money but on the other hand I feel like it is their own fault. It is no different than leaving your complete retirement in one company's stock and hoping it works out imo. Why take the risk.

If nothing else comes out of all this, at least it might teach the bitcoin world a lesson.

 

[JeremyCT]

I think there are a lot of people involved in BitCoin who don't have a decent grasp of basic finance. Recognizing risk/reward, that sort of thing. The people that lost their shirt at Mt Gox took a gigantic risk leaving large amounts with them. So I agree with Bug, I really feel bad for them on one level, but on another I totally don't. Until the market settles in a bit more things are going to be volatile, and not just in terms of exchange rates. Companies will come and go, rise and fail in any market as new as this one is.

 

[torin3]

I would like to note that it looks like the major exchanges are now reporting BTC is over $600. Whoo-hoo!

Still holding on for a while before the next hardware purchase, but my .797 BTC is worth about $500 now.

 

[Luke1978]

 

[Luke1978]

Wouldnt take much more than no sell orders for 24-48hrs to drive the price up.

Gox shot themselves in the foot by having BTC prices so bloated, buy @ 800ish from one exchange, sell at Gox for a nice 100-200 dollar profit. Guaranteed money. People were foolish for leaving that money there though, a 4 year old should have been able to see some serious problems on the horizon.

 

[Oklahoma Wolf]

I would like to note that it looks like the major exchanges are now reporting BTC is over $600. Whoo-hoo!

Still holding on for a while before the next hardware purchase, but my .797 BTC is worth about $500 now.

I've got the rest of the week before I need to cash out again, personally. Need to get the gear for the first dedicated mining rig. Ordered two USB risers yesterday and a CPU today... that'll get four cards onto my planned board. Board and memory will have to be paid for through mining though, and I would really like to grab another 270, too.

The main rig is way too crash happy with two video cards mining all the time. The sooner most of my hashing power is on SMOS or BAMT, the better.

 

[ZL1]

I would like to note that it looks like the major exchanges are now reporting BTC is over $600. Whoo-hoo!

Still holding on for a while before the next hardware purchase, but my .797 BTC is worth about $500 now.

now that does say a lot ! and if its 800 by next week those newspaper trolls who kept talking about gox as it was bitcoin should better never speak on the subject again, sadly though i know they will trolls will be trolls

anyway heres hoping for 800 by next week and so forth

 

[Silver_Pharaoh]

now that does say a lot ! and if its 800 by next week those newspaper trolls who kept talking about gox as it was bitcoin should better never speak on the subject again, sadly though i know they will trolls will be trolls

anyway heres hoping for 800 by next week and so forth

to that!

I just need UTC to get bumped up, then have PTS do the same, if it doesn't, I'll just buy PTS till I own 10

 

[Luis_GT]

it looks like mtgoc may eventually release the funds

http://www.mtgox.com/

Important Announcement to all users Confirming Their account
balance confirmation This service IS Provided on this site only for the Convenience of all users.
Please BE aware Confirming That the balance on this site Does not Constitute a rehabilitation Filing of Claims under the civil rehabilitation procedure and Note That the balance Amounts shown on this site SHOULD BE Considered Also not an Acknowledgment by MtGox Co., Ltd. Amount of the rehabilitation of any Claims of users.
Rehabilitation Claims under a civil rehabilitation procedure Become Confirmed from a Filing Which IS Followed by an Investigation procedure. The method for filing claims will be published on this site as soon as we will be in situation to announce it.

 

[eaglescouter]

MtGox found some of the 'missing' BTC:
https://bitcointalk.org/index.php?topic=523917.0

 

[ssjwizard]

This entire situation is laughable. First the coins are gone, now some have been found, then some more found, but no notice of how they will repay users. SOOOO glad I never used GOX.

 

[Silver_Pharaoh]

SOOOO glad I never used GOX.

Amen to that!

 

[moho]

pshh. paper wallet ftw.
i never keep more than 100 ltc in an exchange/online wallet.
just made a paper wallet for 99% of my hoard. feels funny touching 1 piece of paper that holds almost all your coins

 

[Pierre3400]

Im also happy i never used GOX, but one would think that the "finding" of 200.000bitcoins, would be good for the value, yet, all i see i a down spiral.

I really hope things start to pick up soon. Seeing prices for up 100bucks just under a month ago was great, but now we're back where we came from. I'd rather be "back" at 800.. Oh well.. i guess i just gotta keep saving them btcs for now.

 

[(G{in}[AK)TION]]

http://timesofindia.indiatimes.com/...ver-missing-bitcoins/articleshow/33122988.cms

 

[BugFreak]

I'm sure he will rush right over to the U.S. because of that.