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How come the debt is in Yen and not in bitcoin?
by stereo 9y ago
How come the debt is in Yen and not in bitcoin?
- flyingfences 9y agoI'm sure that the creditors would love to be paid back the full XBT amount that they lost, but since it's a legal proceeding they essentially have to operate in the currency of the realm which, given that Mt. Gox was a Japanese company, is JPY.
- patio11 9y agoBecause Mt. Gox is a corporation organized under the laws of Japan. Corporations in Japan can own many things of value, such as hotels, laser printers, intellectual property rights, Alpha Black lotuses, swiss francs, and promises to be paid in the future... but all of these things exist, on their books, with a yen value next to them. In the event of a bankruptcy or civil rehabilitation (民事再生, which is what Gox is going through IIRC), creditors generally get paid out in yen, not in cement mix, even if the company only happens to own cement mix.
- literallycancer 9y agoYen value at the time of purchase? Does it get updated at any time? Surely 20 years old construction machines aren't worth as much now?
- vmarsy 9y agoIt's a well known subject in Accounting : Depreciation [1] [1] https://en.wikipedia.org/wiki/Depreciation https://en.wikipedia.org/wiki/Depreciation
- abritinthebay 9y agoBecause currency describes the value. It's like MtGox was an apple storage facility and lost all your apples - you wouldn't get apples back, you'd get the value of those apples. Which is in a real currency.
- josephagoss 9y ago> Which is in a real currency. It's not about being a real currency or not. It's about what is the legal currency of that particular nation. Notice how they are not pegging the amount to the Australian dollar?
- emodendroket 9y agoThe distinction is academic since Bitcoins are not legal tender anywhere.
- abritinthebay 9y agoWell of course it's going to be in the currency of the legal system doing the fining. If it was in the U.K. it would be GBP...
- dragonwriter 9y agoBecause when debt hits the legal system, as is the case with bankruptcies, it gets converted to the currency in which the legal system works.