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Bitcoin drops sharply as Mt. Gox halts withdrawals
Market Watch ^ | 7 February 2014 | Barbara Kollmeyer

Posted on 02/07/2014 7:54:47 AM PST by Errant

MADRID (MarketWatch) -- Bitcoin prices fell on Friday after exchange Mt. Gox said it was halting withdrawals temporarily. The company said an increase in flow of withdrawals requests "has hindered our efforts on a technical level. To understand the issue thoroughly, the system needs to be in a static state," said Mt. Gox officials in a note on the website Friday. To resolve the issue, it said a temporarily pause on all withdrawal requests was needed. Its tech team was working on its system, Mt. Gox added, and an update will be provided by Monday.

(Excerpt) Read more at marketwatch.com ...


TOPICS:
KEYWORDS: bitcoin; exchange; gox; market
At one point yesterday I believe the price of Bitcoin was lower on Mt. Gox than on BTC-e. Current prices are: Mt. Gox $727.90; BTC-e $718.01

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Gavin Andresen: It’s Going to be Tough for Governments to Control Bitcoin

Why Bitcoin Must Die. Long Live Bitcoin 2.0.

Legal Troubles Barely Subdue a Bitcoin Evangelist’s Sermons

Why does Apple continue killing bitcoin apps?

Rewards Program Tries Bitcoin

1 posted on 02/07/2014 7:54:47 AM PST by Errant
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To: Lurkina.n.Learnin; nascarnation; TsonicTsunami08; SgtHooper; Ghost of SVR4; Lee N. Field; DTA; ...

Click to be Added / Removed.
2 posted on 02/07/2014 7:55:36 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

An “Extraordinary Delusion”.


3 posted on 02/07/2014 8:05:04 AM PST by Stentor (Maybe the Goldman Sachs thing is just a coincidence.)
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To: Errant

Please something drive it down - I’m hoping for buying opportunities.


4 posted on 02/07/2014 8:15:42 AM PST by corkoman
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To: Errant
I've posted this previously a long time ago in my own words but here's another very similar version from The Quill Group Blog:

A long time ago, in a faraway land, (probably Iceland) the great sardine rush was underway. Everyone was making money from buying and selling sardines. Policemen, nurses and even bricklayers had given up their day jobs to concentrate on sardine trading. One day, in the middle of the great sardine rush, a young trader who had built up a position of 25 tonnes of sardines called up his broker and asked if they could meet down at the sardine warehouse. When they met, the broker unlocked the doors, and the young trader went inside to admire his mountain of sardines.

As he perched atop a box of the tasty morsels, he pulled a can out of a nearby box, and ripped open the lid. The foulest odour came out. They were rotten. Another box – the same result. All of his sardines were rotten! He turned to his broker and asked what he was supposed to do with 25 tonnes of rotten sardines! The broker, unaffected by the situation simply said to him, “Son, these sardines are for trading, they’re not for eating”.

And, so ended the lesson on assets which reach a point where trading rather than eating becomes the purpose. The broker made his point that with some assets you don’t want to be the bunny left holding the baby when the music stops. In the 80’s the asset we were talking about was shares in companies that had little more than a prospectus and a promise.

5 posted on 02/07/2014 8:18:40 AM PST by Portcall24
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To: Portcall24

The problem with that analogy is that the US dollar is the sardines.


6 posted on 02/07/2014 8:30:05 AM PST by E. Pluribus Unum (The only way women can "have it all" is if men aren't allowed to have anything.)
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To: E. Pluribus Unum

Agreed. Interesting timing as I just was listening to “Gimme Shelter” by the Stones.


7 posted on 02/07/2014 8:34:37 AM PST by Portcall24
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To: Portcall24

And in 2015, you will not want to hold all of the dollars coming back to the US nor the gold and silver that will be deflating back to the mean.

I guess land is ok.


8 posted on 02/07/2014 8:36:16 AM PST by Vermont Lt (If you want to keep your dignity, you can keep it. Period........ Just kidding, you can't keep it.)
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To: Errant

9 posted on 02/07/2014 8:53:10 AM PST by DannyTN
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To: Vermont Lt

bit coin dependent on internet and power both under the control of various governments who promote their own currencies .....dugh


10 posted on 02/07/2014 8:53:36 AM PST by Therapsid
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To: Therapsid

All that financial rebellion will have to find another venue.


11 posted on 02/07/2014 9:00:01 AM PST by Therapsid
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To: DannyTN
The price is holding well on the other exchanges. The world currencies are in serious trouble. They're going to attempt to maintain the status quo for as long as possible, even to the point of trying to elbow the competition (i.e., gold, silver, bitcoin). We all know as things get worse worldwide with the economy, this is going to happen.

I'm holding the few I have, except for a purchase or two for some durable item. Why trade them for fiat?

12 posted on 02/07/2014 9:17:10 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Therapsid
All that financial rebellion will have to find another venue.

And just what would that be? Government has the power to come take anything they wish. Ask some of the old timers who had to give up there gold in the '30s.

If things really get bad, there is nothing that offers the ability to skirt TPTB like P2P Cryptocurrency.

13 posted on 02/07/2014 9:20:38 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant
Interesting. To generate funds to settle an estate I am administrator of I have to be able to convert bitcoins to dollars.

As a test I sold one bitcoin on Mt. Gox back when it was at $1200 something each. Then I tried to transfer the proceeds into a verified bank account. That was back in December sometime. That money still hasn't showed up.

I did the same at Coinbase. The US$ were transferred in promptly, and when Coinbase said they would be.

A bit of googleing tells me that Mt. Gox has a reputation for being very slow to transfer.

If you can't actually change the money and get it, can Mt. Gox be considered an "exchange"? And why pay attention to the price there?

A lot of the bitcoin related businesses I've had to deal with for this strike me as "amateur". That's the kindest way of putting it.

14 posted on 02/07/2014 9:24:14 AM PST by Lee N. Field ("You keep using that verse, but I do not think it means what you think it means.")
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To: Therapsid

Not saying bitcoin is the answer. BUT, we are about to enter a deflationary spiral. Hyperinflation is still pretty far away. When you read on the “fringe” sites that gold and silver are the answers, one would have to ask, if that were the case how come the price is not shooting up?

The big, old, money is selling gold.

Land, bitcoin, precious metals and cash. It’s the distribution that is in question.


15 posted on 02/07/2014 9:30:31 AM PST by Vermont Lt (If you want to keep your dignity, you can keep it. Period........ Just kidding, you can't keep it.)
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To: Therapsid

Plus, the Internet and power will not go down everywhere.

If they do, bullets and beans are the only answer. It will get bad. But not THAT bad.


16 posted on 02/07/2014 9:31:38 AM PST by Vermont Lt (If you want to keep your dignity, you can keep it. Period........ Just kidding, you can't keep it.)
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To: Therapsid
bit coin dependent on internet and power both under the control of various governments who promote their own currencies .....dugh

And no governance except the insane Norks is going to turn off either.

17 posted on 02/07/2014 9:32:55 AM PST by Lee N. Field ("You keep using that verse, but I do not think it means what you think it means.")
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To: Lee N. Field
I've never used Mt. Gox or ever move my few Bitcoins to cash for that matter. However, I always suspected the higher premium that Mt. Gox commanded was related to the difficulty of moving out to cash, etc. Looks like folks who have accounts there may be giving up and why the selling.

The problem isn't all of Mt. Gox's fault. They've been hit with closing of their link to American banks. Also, BTC-e is having problems with the Russian system to. It's a battle royal going on behind the scenes, IMO.

I have used a few fractions to purchase a couple of watches from Overstock. That went very well. Perhaps as more and more merchants take bitcoin and litecoin, moving it into fiat will not be the desirable thing to do. One other thing I'm thinking about is exchanging some for gold/silver. There is a PM vendor in the states that takes Btc.

I will always have a little crypto, if for no other reason than diversification.

18 posted on 02/07/2014 9:35:21 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant
"To understand the issue thoroughly, the system needs to be in a static state,"

Things that make you go "Hmmmm..."

19 posted on 02/07/2014 9:46:07 AM PST by Fido969 (What's sad is most)
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To: All
Australian Retailer Millennius Halts iPhone Sales in Apple Boycott
20 posted on 02/07/2014 9:46:20 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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Leading Australian e-tailer Millennius has stopped selling iPhones to protest against Apple’s decision to remove the blockchain.info app from its app store.

Millennius is a key proponent of bitcoin, and has called for wider deployment of the currency in the past. The company argues that bitcoin could lower prices online as payments are cheaper than traditional credit card payments and these savings could be passed down to consumers.

21 posted on 02/07/2014 9:46:48 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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Jim’s Mailbox

Posted February 7th, 2014 at 11:40 AM (CST) by Jim Sinclair & filed under Jim’s Mailbox.

Dear Jim,

According to Grant, the Central Bank Governor of India has pretty much stated that “ the cooperation between the world’s central banks is gone and it’s every man for himself.” The Banksters are too self absorbed to only look out for the dollar and not protect their own self-interests.

This tells me we are at the point I have been expecting. The Central Banks of the world would pull back from complete and total cooperation with the US Central Banks and it will be every banker for themselves. The holes in their plan are starting to show and they will not stop the march towards freeing gold to be what it is intended to be – money!

CIGA Larry

All Hell Will Break Loose & The Dominos Will Start Falling
February 7, 2014

Today one of the most highly respected fund managers in Singapore warned King World News that all hell is going to break loose and the dominos are going to start falling. Grant Williams, who is portfolio manager of the Vulpes Precious Metals Fund, also spoke about what this will mean for investors around the world and also what kind of surprise to expect from the gold market.

Eric King: “What about the turmoil around the world, Grant? How bad do you expect this to get?”

Williams: “Eric, we’ve seen some pretty big moves here, particularly in Japan. We’ve also seen some big moves in other Asian markets as well. We’ve got political unrest in Thailand, and we also have a currency crisis all over the region….

http://www.jsmineset.com/


22 posted on 02/07/2014 9:53:45 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

I think IMO this is just profit taking from the big money investors, Apple kind of got the ball rolling, it will very soon hit a bottom and quickly bounce back, the question is has hit bottom already and will I kick myself for not buying now.

What’s going on Mt Gox should be investigated from within the bitcoin community.


23 posted on 02/07/2014 10:21:18 AM PST by PoloSec ( Believe the Gospel: how that Christ died for our sins, was buried and rose again)
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To: PoloSec

Agree


24 posted on 02/07/2014 10:23:49 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: PoloSec

Btw, Apple is catching heck over it... There stock isn’t looking too healthy either. I bet if Steve Jobs was still alive, he’d be all over Bitcoin like white on rice!


25 posted on 02/07/2014 10:25:35 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: All
Interesting:

Gold, Silver And The Gathering Crypto Currency Storm

26 posted on 02/07/2014 11:10:55 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

Like a penny stock thats been halted.....whats in you bag?

sorry but all the responses from this morning ....the level of delusion exhibited....its sad.

little electronic blips worth .....hell no


27 posted on 02/07/2014 11:53:08 AM PST by Therapsid
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To: Errant

I’m not a BitCoin expert, so this isn’t intended to make a statement for or against them. Others can figure that out for themselves.

I read that headline and I expected to go to the exchanges and see sub $500.00 BitCoin evaluations. Hey, it was at $720.00 or so.

The earlier evaluation from this morning was around $810.00 when I checked. I guess a $90.00 drop is a sharp drop, but it’s not as bad as what I expected from the reporting.

I’ve only been watching BitCoin for several months. During that time I’ve seen it around $1200 per coin all the way down to $500. I don’t see $720 as a panic rating.

I don’t seem to be nearly as down on BitCoin as some others are.


28 posted on 02/07/2014 1:28:15 PM PST by DoughtyOne (Amnesty is job NONE! It isn't even the leading issue with Hipanics.)
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To: Errant

“The price of a bitcoin last traded at $719.44, with a session high of $867.60 and a low of $651.70”

Gents thats about 30% daily volatility off the low to peak.

Its far safer to be in Iraqi Dinars.


29 posted on 02/07/2014 1:29:03 PM PST by wonkowasright (Wonko from outside the asylum)
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To: DoughtyOne
I don’t seem to be nearly as down on BitCoin as some others are.

You are like I am I suspect, looking at it as something new, not fully tested, its utility, and its potential.

Let's give it a few more years and then evaluate. For now, its potential is interesting and IMO worth investing a little excess fiat or computer mining time into just for the knowledge and the heck of it. :)

30 posted on 02/07/2014 6:32:58 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: wonkowasright

I don’t know anything about Iragi Dinars, I mostly eat at the Golden Corral. The few Bitcoins I have mined, even at the current price, have increased their values x10 in less than 1 year. That’s not too shabby. The trend over time seems to be up, not sure the same can be said about the dollar, especially when I just saw on the internet that we’re 6+T deeper in debt just since O has been in office, with 3 more years to go.


31 posted on 02/07/2014 6:43:44 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

I plan on putting some funds into it the next actually big down day. I’m not going all in, but it’s interesting enough for me to start dabbling a bit.


32 posted on 02/07/2014 6:54:14 PM PST by DoughtyOne (Amnesty is job NONE! It isn't even the leading issue with Hipanics.)
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To: DoughtyOne
That's the smart way to get into something new. I started out mining back last April and it was quite a learning curve. It has been fun and exciting at times. May try a little trading one day. I've traded both commodities and stocks in the past, so I know what I'll be getting myself into at least.

I will never forget owning coco futures, their price crashing, and trying to sale to cut my loss on the very day the WTC basement was bombed by terrorists. It was a good thing I had placed my stops were I had. Saw Red Hat go from about $6 to $30 in about a day. So yes, this price fluctuation today, especially since it was exchange related, isn't that impressive.

33 posted on 02/07/2014 7:18:56 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

Thanks Errant. I’ve made my mistakes over time too. That’s why I’ll just dabble. I don’t have an aversion to losing a little, with the possible up-side.

I appreciate the note of agreement concerning today’s fluctuation too.


34 posted on 02/07/2014 8:35:13 PM PST by DoughtyOne (Amnesty is job NONE! It isn't even the leading issue with Hipanics.)
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To: Lee N. Field
As a test I sold one bitcoin on Mt. Gox back when it was at $1200 something each. Then I tried to transfer the proceeds into a verified bank account. That was back in December sometime. That money still hasn't showed up.

Just got started mining a month ago and my instinct told me to stay away from Mt. Gox. I do my trading on BTC-E, then transfer bitcoins to coinbase and then deposit USD into my bank account. Went smooth as silk.
35 posted on 02/07/2014 8:58:20 PM PST by mmichaels1970
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To: Errant
Also, BTC-e is having problems with the Russian system to.

That rumor made me nervous a couple days ago. From what I understand, BTC-e is from Bulgaria and is claiming to be unaffected by the recent Russian activity. I hope so. I really enjoy using BTC-e
36 posted on 02/07/2014 9:00:48 PM PST by mmichaels1970
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To: Errant

I started out mining back last April and it was quite a learning curve.


What’s the best way to start mining? And did you purchase bitcoins outright or earn them all through mining?


37 posted on 02/09/2014 10:55:12 AM PST by OwenKellogg (Fundamental transformation sucks.)
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To: OwenKellogg
Start out with a spare PC if you have one, or the one you're using if you set the computation cycles low enough so that you can still use it. Mining takes a lot of resources. I like using CGMiner for a mining application. Find a mining pool to join and start by mining Litecoin or another coin that allows for 'Script' mining.

You won't be able to make enough to pay for the electricity, but you will have fun, and able to learn enough to decide if you wish to invest more dollars into high end GPUs, which will turn a profit at the current price or maybe even an ASIC miner one day.

Here is a link to some basic info:

How to set up a bitcoin miner

38 posted on 02/09/2014 11:43:03 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Stentor

Nice reference.


39 posted on 02/09/2014 11:43:54 AM PST by ctdonath2 (Making good people helpless doesn't make bad people harmless.)
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To: Errant

Thanks for the info — I will look into it.


40 posted on 02/09/2014 11:52:43 AM PST by OwenKellogg (Fundamental transformation sucks.)
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To: OwenKellogg

You are most welcome. Best of luck and most important, have fun.


41 posted on 02/09/2014 12:12:15 PM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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