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Bitcoin Crashes as Major Exchange Temporarily Halts All Withdrawals
Street Insider ^ | 02/07/2014

Posted on 02/07/2014 10:05:15 AM PST by SeekAndFind

Virtual currency Bitcoin is under severe pressure Friday after major exchange Mt. Gox temporarily halted all withdrawals citing issue encountered by various other bitcoin withdrawals.

The price of bitcoin is currently down nearly 11% to $703 after trading down as much as 20% earlier.

Below is the Mt. Gox Statement:

Dear MtGox Customers,

In our efforts to resolve the issue being encountered by various bitcoin withdrawals, it was determined that the increase in the flow of withdrawal requests has hindered our efforts on a technical level. To understand the issue thoroughly, the system needs to be in a static state.

In order for our team to resolve the withdrawal issue it is necessary for a temporarily pause on all withdrawal requests to obtain a clear technical view of the current processes.

We apologize for the sudden short notice. All bitcoin withdrawal requests will be on pause, and the withdrawals in the system will be returned to your MtGox wallet and can be reinitiated once the issue is resolved. The trading platform will perform as usual for the needs of our customers. 



Our team will resolve this problem as soon as possible and will provide an update on Monday, February 10, 2014 (JST).



We deeply apologize for the inconvenience caused, and thank you for your kind support and considerations. 


Sincerely,

The MtGox Team






TOPICS:
KEYWORDS: bitcoin; bitcoinmarket; crash

1 posted on 02/07/2014 10:05:15 AM PST by SeekAndFind
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To: SeekAndFind
Bitcoin drops sharply as Mt. Gox halts withdrawals

http://freerepublic.com/focus/f-chat/3120352/posts

2 posted on 02/07/2014 10:11:29 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Lurkina.n.Learnin; nascarnation; TsonicTsunami08; SgtHooper; Ghost of SVR4; Lee N. Field; DTA; ...

Click to be Added / Removed.
3 posted on 02/07/2014 10:12:21 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant

Being on the bleeding edge has its fun moments.


4 posted on 02/07/2014 10:12:44 AM PST by Paladin2
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To: SeekAndFind; Errant

Okay, wait a minute...this was supposed to be a stabilized, non-governmentally manipulated truly free-market perfect alternative to the nasty old $. Here it just behaves like all the other barter systems. Oops.


5 posted on 02/07/2014 10:13:19 AM PST by Dutchboy88
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To: SeekAndFind
When I think of bit coin why do I think of this?


6 posted on 02/07/2014 10:17:35 AM PST by Slyfox (We want our pre-existing HEALTH INSURANCE back!)
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To: Paladin2

Yep. lol Not bad though for miners who get a small stipends from all of the transaction activity.


7 posted on 02/07/2014 10:17:51 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Dutchboy88
What you're seeing is the market reacting to the Mt. Gox exchange having issues with moving bitcoin to fiat. Not all Mt. Gox's fault btw. The governments have been causing them problems with regulation, shutting down bank lines in the U.S. and etc.

Adjustments here and there is what the free market is all about. Better to adjust than an eventual collapse - the danger we're facing with the world economy brought about by an artificial market and government manipulation.

Scandal: Bank Of England Encouraged Currency Manipulation By Banks

8 posted on 02/07/2014 10:22:47 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: SeekAndFind
to obtain a clear technical view of the current processes . . .

... that originate in Belarus.

9 posted on 02/07/2014 10:24:53 AM PST by Zuben Elgenubi (NOPe to GOPe)
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To: Slyfox

10 posted on 02/07/2014 10:28:13 AM PST by Justa
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To: Slyfox

Funny. Monopoly money has more intrinsic value.


11 posted on 02/07/2014 10:34:01 AM PST by FatherofFive (Islam is evil and must be eradicated)
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To: Justa
And it continues with the new $100 bill.



12 posted on 02/07/2014 10:40:03 AM PST by Yo-Yo (Is the /sarc tag really necessary?)
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To: Slyfox
When I think of bit coin why do I think of this?

Because you understand neither Bitcoin nor money.

Money is an agreement between people.

When you are playing monopoly you agree with the other players to deal with each other in Monopoly money. If you were to bring Federal Reserve Notes or gold bars to the game table, they would in no way help you win the game.

If you bring Monopoly money to McDonalds they may or may not accept it depending on the value that each of you ascribed to a certain quantity of them. They may actually be in the middle of one of their Monopoly promotions and decide trading you a hamburger for a couple thousand Monopoly bills would be a good way to secure supplies for the promotion.

Doing this on a large scale would be a tricky proposition though because people could find cheaper and cheaper way of printing their own Monopoly money. It would not be a viable long term means of enabling transactions.

Bitcoin on the other hand has many safe guards built into it to make it more stable than Monopoly money.

The real test of a currency is to judge it's potential stability against the entire market long term. Not just comparing it to one other currency or one other commodity. THE WHOLE MARKET.

When you compare the stability of Federal Reserve Notes against THE WHOLE MARKET for the past 50 years, what does that tell you about it's stability? Seems to me one Federal Reserve Note doesn't buy as much gasoline or gold or lead as it did in 1963. That is not very stable if you ask me.

Bitcoin is designed in a way to prevent what has happened to the Federal Reserve Notes.

Millions of people around the world are mutually ascribing value to Bitcoin by agreeing with each other to deal with one another through that medium because they see it as a better currency.

13 posted on 02/07/2014 10:42:49 AM PST by nitzy (You can avoid reality but you can't avoid the consequences of avoiding reality.)
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To: Dutchboy88
oops

Not to worry. I'm sure that FDIC insurance will cover it. (sarcasm)

14 posted on 02/07/2014 10:44:35 AM PST by grania
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To: nitzy

You have no sense of humor.


15 posted on 02/07/2014 10:48:16 AM PST by Slyfox (We want our pre-existing HEALTH INSURANCE back!)
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To: SeekAndFind; null and void

you MUST use what we tell you to use


16 posted on 02/07/2014 10:51:38 AM PST by Nifster
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To: Errant
Good afternoon.

Could it be an attack? Since every Bitcoin order/sale/purchase has to be verified by computer computation by all Bitcoin miners/owners, it might be a denial of service.

Just a swag.

5.56mm

17 posted on 02/07/2014 10:56:58 AM PST by M Kehoe
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To: M Kehoe
Could it be an attack?

Their site is up, so I wouldn't think it is an attack. Guessing it's an issue with sending money, or a problem with cash flow, etc. but it could just be a problem with their software.

18 posted on 02/07/2014 11:06:55 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: M Kehoe
Interesting:

Gold, Silver And The Gathering Crypto Currency Storm

19 posted on 02/07/2014 11:11:39 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Slyfox

“When I think of bit coin why do I think of this? “

Excepting that the value of Monopoly money is more stable than bitcoin, not to mention you can actually put Monopoly money in your pocket.


20 posted on 02/07/2014 11:14:03 AM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: Errant

“Not all Mt. Gox’s fault btw. The governments have been causing them problems with regulation, shutting down bank lines in the U.S. and etc. “

Do you have evidence of that? The problem here seems to be a problem related to the bitcoin system itself, unrelated to exchange issues.


21 posted on 02/07/2014 11:16:14 AM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: catnipman
Do you have evidence of that?

Sorry, I was referring to a systemic problem created when Mt. Gox lost its direct link to U.S. banking some time back, not the current problem.

22 posted on 02/07/2014 11:20:52 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: Errant
Thanks for the link. Dr. Jeff Lewis, except for a few minor points (i.e. mining off the sea bed), knows what he is talking about.

I could be wrong, but methinks it may be a denial of service by the computing power required/bandwidth/software limits, etc. from an outside source (i.e. NSA, EU, etc.).

I'm probably wrong...

5.56mm

23 posted on 02/07/2014 11:22:30 AM PST by M Kehoe
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To: SeekAndFind

Oops.


24 posted on 02/07/2014 11:23:21 AM PST by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
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To: M Kehoe

You are very welcome and you may be right. Whatever it is, they don’t seem too eager to fully share.


25 posted on 02/07/2014 11:25:54 AM PST by Errant (Surround yourself with intelligent and industrious people who help and support each other.)
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To: SeekAndFind

http://www.vocativ.com/02-2014/bad-day-bitcoin-price-crashes-mt-gox-halts-withdrawals/

“The withdrawal issues are not the end of Bitcoin, of course. Trading will likely resume on Monday, and the price will jump back up. But for Bitcoin to ever gain real legitimacy—both from the public and the government—these types of exchange issues simply cannot happen. There are more 150,000 Bitcoin accounts, so shutdowns like this aren’t trivial. Imagine, for a moment, walking into a bank and being told by the teller that the bank can’t handle your request for $100 because their computers weren’t working. That’s essentially what Mt. Gox is saying.

Even the usually ebullient Bitcoin hivemind is taking a moment to pause and recognize the ramifications of systems errors like these. ”This a reminder that while Bitcoin may be an interesting technological achievement, as a tradable asset it is still basically a toy,” writes one commenter on Hacker News. “Crappy exchange technology combined with low liquidity is a perfect recipe for this kind of volatility.” “


26 posted on 02/07/2014 11:27:48 AM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: grania
"Not to worry. I'm sure that FDIC insurance will cover it. (sarcasm)"

Okay, that's funny. But, why not? The feds are going to fix everything else that goes wrong...why not bitcoin?

27 posted on 02/07/2014 12:25:42 PM PST by Dutchboy88
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To: nitzy
Bitcoin on the other hand has many safe guards built into it to make it more stable than Monopoly money.

Bitcoin is a made up currency with no intrinsic value. It is a game, much like Monoploy but with less fun.

28 posted on 02/07/2014 3:00:12 PM PST by FatherofFive (Islam is evil and must be eradicated)
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To: nitzy

Are you enjoying the party Mr. D’ Anconia?


29 posted on 02/07/2014 3:16:24 PM PST by Tijeras_Slim
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To: FatherofFive
Bitcoin is a made up currency with no intrinsic value. It is a game, much like Monoploy but with less fun.

Funny thing is...every time I try to sell it, somebody buys it. Like 100% of the time. Try doing THAT with monopoly money.
30 posted on 02/07/2014 9:06:23 PM PST by mmichaels1970
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