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Mt. Gox? WTF!!! #BITCOIN


Longshot

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What in the holy (insert profanity here) is going on with Mt. Gox? Is anybody on FDR caught up in this Everest size pile? Side topic, I read the US confiscated $5 mil from Mt. Gox for failure to comply with $$$ laundering laws last year. Is that true or not? At least nows a good time to buy Bitcoins while their low.

 

& yes...I did use a hash tag in the title

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Someone (or some organization) has been making trouble for Mt Gox by exposing a bug in their system for reconciling BTC withdrawals. As a result, Mt Gox has (supposedly temporarily) suspended BTC withdrawals. As a result, some people with BTC on MtGox have been panic-selling their BTC for ridiculously low prices, compared with the market price on functioning exchanges such as BitStamp.

 

Prior to this incident, MtGox imposed limitations on the rate of fiat withdrawals. There's no way that the MtGox price can be regarded as the market price of BTC.

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True Mt. Gox BTC price shouldn't be considered market price, but regardless it still has had an effect. My BTC tickets put Mt. Gox @ $273.90 USD & BTC-e @ $598.20 USD. Market price has been around high $700's to low $800's for awhile until now. Is there another factor affecting the market besides Mt. Gox's selling spree?

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Is there another factor affecting the market besides Mt. Gox's selling spree?

 

For sure, there are many other factors affecting the market price. But the great thing about markets is that they process more information than any individual market participant has access to.

 

The Bitcoin price tends to rise with each new business that accepts Bitcoin, and tends to fall each time a Bitcoin exchange gets hacked or runs into banking problems. The price fluctuates with each new regulatory development, and tends to rise with each wave of users brought in by a newly-published press article. There is also plenty of irrational "groupthink" affecting the market price, such as a prominent community member hinting at some rumor, or some mathematical pattern developing on the price charts.

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If anyone is looking for the current bitcoin price, the best site to use is https://bitcoinaverage.com/ as they average all of the transactions worldwide and is the best way to estimate the current price.

 

MtGox I think has been excluded from the site for a while because arbitrage with MtGox was almost impossible even before they shut down withdrawls as it took several weeks to get approved for an account and other annoying issues that dropped them from 80% market share a few years ago to 25% market share before this latest debacle.

 

This is a minor issue in bitocin that has been known for years and had a public wiki devoted to the topic. Many other exchanges have simply put in fixes in their own code as the bitcoin developers have much more important things to work on. The fact that MtGox pretended like they found this elusive bug and are stopping withdrawls to protect customers is laughable and it is much more that they are completely incompetent to read and find fixes for known issues.

 

This news scared people as they thought there might be a problem with bticoin. I think this is a great opportunity to tell everyone to stop using MtGox and to get a little bitcoin at a slightly discounted price.

 

If after this, the bitcoin development team if forced to release a fix for this issue because of the incompetence of a few exchanges to check a public wiki of known issues, then I hope that the bitcoin community doesn't let them pull the "we saved bitcoin" card as they will certainly try to do in public press releases.

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