
Bitcoin’s Value Falls 10% as Faltering Mt.Gox Exchange Continues to Implode - JacobH
http://techcrunch.com/2014/02/20/bitcoins-value-falls-10-as-faltering-mt-gox-exchange-continues-to-implode/
======
InclinedPlane
Please form two orderly lines. People who are shocked, appalled, and surprised
form to the left. People who are just itching to say "I told you so!" please
form to the right. I hear refreshments and snack cakes are to be served and a
bar will begin selling liquor soon (cash only).

~~~
Tohhou
Third line: cold indifference.

~~~
briansmith
It would be hard to convince them to line up.

------
matteotom
While this may be painful, it will be better for Bitcoin in the long run to
shrug off the dependence on Mt.Gox.

~~~
camus2
How can it be? do you really think the people that got screwed will continue
buying and have faith in bitcoins? I wouldnt.

~~~
pmorici
This isn't the first time a Bitcoin company has imploded taking a large amount
of customer funds with it. A lot of people have also seen this train wreck
coming for a long time, like nearly 10 months ago it was obvious something
wasn't quite right. Many people had already moved from Gox to more reputable
exchanges like Bitstamp or Coinbase. This might effect Bitcoin in the near
term while this shakes out but long term I doubt it will be more than a
sentence in this history of Bitcoin's rise.

~~~
joezydeco
Coinbase has had it's share of hiccups and software fails as well. Are they
still on MongoDB?

~~~
smtddr
Is there something wrong with MongoDB that I don't know about? Is it not
suitable for Coinbase's business?

~~~
joezydeco
Let's review...

[https://news.ycombinator.com/item?id=5428382](https://news.ycombinator.com/item?id=5428382)

~~~
smtddr
So I don't have a horse in this race. I'm PostgreSQL-or-MariaDB kinda guy.
Just trying to understand what's wrong wtih MongoDB. I agree I see a bunch of
complaints in that HN thread, but I also see this:

[http://www.mongodb.org/about/production-
deployments/](http://www.mongodb.org/about/production-deployments/)

There some heavy-weight companies on that list using MongoDB. eBay, SAP,
stripe.

------
ihsw
There is some speculation of insider trading, too.

[http://i.imgur.com/qLYhzR3.jpg](http://i.imgur.com/qLYhzR3.jpg)

~~~
buttcoinslol
Bitcoin wanted an unregulated currency, Bitcoin got an unregulated currency.

~~~
300bps
Bernie Madoff's customers wanted a regulated market. Bernie Madoff's customers
got a regulated market.

CMO buyers wanted a regulated market. CMO buyers got a regulated market.

I could go on for a while. But I'm left wondering - do you really think that
your comment is insightful or are you just reveling in schadenfreude?

~~~
camus2
Bernie's in jail.the system works. what's your point?

~~~
300bps
Oh, silly me! $18 billion missing from investor's wallets but he's in jail so
no harm no foul.

[http://en.wikipedia.org/wiki/Bernard_Madoff#Size_of_loss_to_...](http://en.wikipedia.org/wiki/Bernard_Madoff#Size_of_loss_to_investors)

~~~
bottled_poe
A ponzi scheme is what this system of greed demanded. The same will come to
pass again.

------
anigbrowl
It's worth noting that Mt Gox's new offices as listed on their support website
appear to be in a hotel. Hmmm.

[https://www.google.com/maps/@35.656428,139.698518,3a,75y,117...](https://www.google.com/maps/@35.656428,139.698518,3a,75y,117.7h,90.44t/data=!3m4!1e1!3m2!1sc9xN3tl5Of6eQOLVNjs4Pw!2e0!6m1!1e1)

~~~
dustcoin
This "office" isn't "new". It is their old address before they moved, I sent a
document there in 2011.

------
Cbasedlifeform
Does anyone know how much of the total BTC are still held within Mt Gox? If MG
does indeed implode or go bankrupt, what happens to the BTC it still holds? I
feel sorry for those who trusted MG with their BTC, but the writing was on the
wall a while ago.

------
fingerprinter
ELI5. How can a bitcoin on Mt.Gox be going for one price and the "general"
bitcoing market be going for another? I feel like I'm missing something.

~~~
tb
Default risk. The price for a bitcoin that is currently held by Mt.Gox factors
in the market's expectation that said bitcoin will be able to be redeemed from
Mt.Gox. Analogous to why your bank charges you a higher interest rate on a
loan if you have a poor credit score, to compensate them for the perceived
risk that you fail to repay the loan.

------
pyalot2
Bravo, spot on headline. Wired, are you reading this, maybe take an example?

------
camus2
To the ground ! So here is MtGox owners exit strategy, vulgar theft.

~~~
TrainedMonkey
Problem with mtgox is not that people think they are going to run with the
money. Issue lies with the fact that they had some of bitcoins stolen with
transaction malleability issue. Question is just how much got stolen. What
market thinks with bitcoin price @mtgox is that they do not have enough
bitcoins to cover all the people who want to withdraw them.

~~~
derwiki
Your reply would have been better without the first sentence :(

~~~
TrainedMonkey
Made the edit. Thanks for having a cooler head.

