Skip to comments.Mt. Gox Allegedly Loses $350m in Bitcoin (744,400 BTC), Rumoured to be Insolvent
Posted on 02/25/2014 3:12:30 AM PST by Errant
A document has surfaced suggesting that troubled Japan-based bitcoin exchange Mt. Gox will close for one month as part of a four-step rebranding plan, and that CEO and former Bitcoin Foundation board member Mark Karpeles will step down from his executive position as part of the process.
The bitcoin price has been tumbling all morning amid the news, hitting a low of $419 so far this morning.
Entitled Crisis Strategy Draft, the document suggest the companys increasingly dire financials are greatly impacting the decision. By Mt. Goxs own estimates, they say, it has only 2,000 BTC and approximately $22.4m in fiat currencies in its possession.
The document was first reported by Ryan Galt, aka the Two-Bit Idiot, who later confirmed to CoinDesk:
(Excerpt) Read more at coindesk.com ...
Current price of Btc is above $500 at the other exchanges.
Any of these psuedo-currencies are going to be insolvent.
Still not time to buy in.
I am still holding out for $0.125, which is actually “par”.
You know, “two bits” is $0.25, or it was when I was a kid.
And a quarter meant something.
When the guy announced that some hacker had stolen all of the bitcoins from his website, I thought “Hey - this guy will fit right in with the ‘lost my guns in a boat accident’ threads!”
“Mt. Gox will close for one month as part of a four-step rebranding plan”
LOL. $350 million and they are going to “Rebrand”. That will make people trust them.
This is near ponsi hysteria and the same in the long run. Buy Kruegerands, they will always have value.
Dam! didn’t see this coming. [sarc]
If I had engaged in a $350 million transfer of wealth, I don't think I'd go back to the well for a second try.
Hah! All the Bitcoin haters come out of the woodwork as usual.
This is exactly as significant for Bitcoin as a bank robbery is for the dollar. Bitcoins are just as “real” as US dollars (both mostly exist as bits in a computer memory). The main differences are Bitcoins can’t be manipulated like dollars, they’re much less inflationary, and they’re independent of any particular government. They can also be sent anywhere at low cost. Those are good things.
Precious metals have their place too, the strengths of the two complement each other.
“Bitcoins” are a clever Ponzi scheme. Get in at your own risk. As soon as the government figures out if they are money, a money transfer system, an investment package, or a Ponzi scheme you will see massive regulations from Washington.
One of the major problems with Bitcoin is its value is simply the perception of its value. If "people" think each Bitcoin is worth millions, then BTC are worth millions. If "people" think each Bitcoin is worth $0.25, then it's worth a quarter.
You talk about inflation and government manipulation? The prices on the exchanges have ranged from $135 to $1200 per BTC within the past six months, and I'm supposed to feel secure about that?
“Buy Kruegerands, they will always have value.”
I think I’ll stick with my beanie babies.
Things go bad I can always cook em up and serve them with a side of cabbage patch kids.
... then you obviously don’t have what it takes to be a central banker nor a CEO of one of the TBTF banks.
It worked for Ally Bank!
Currencies without rule of law and ability to enforce such law with police and armies are doomed to fail.
And by Kruegerands I mean gold and silver. Not all large denomination but little ingots too for small barter.
When the ship hits the fan, greenbacks will be used for wallpaper and bit coins will be nonexistent as the web will be a memory.
If/when the SHTF it will be the people with the skills and means to provide food and protection that will be raking in the gold, silver, other precious metals, diamonds and anything else of value.
Plant and grow 1# of seeds and you will get 10#s of gold.
Food is one way. Food and guns is another and just guns still another.
Guns and gold another. Just gold another.
Food gold and guns and determination probably the best.
In any case it won’t be a cakewalk for anyone.
But bitcoins will NOT be in the mix
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