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It actually works the opposite. Every time a heist or loss happens, coins are being removed from circulation, making all remaining circulating coins more scarce
by bouncycastle 8y ago
It actually works the opposite. Every time a heist or loss happens, coins are being removed from circulation, making all remaining circulating coins more scarce, thus more valuable in the long term (market takes a while to reflect this).
In heists, the coins become tainted and very difficult to sell as everyone can see their origin.
Mtgox removed quite a lot of BTC from the circulating supply.
- celticninja 8y agoNo it didn't, those coins got back into the supply before the theft was reported publicly. I think the coins stolen from bitfinex are still sitting there so it does happen, just not with the MtGox theft.
- bouncycastle 8y agoAhh, yes. That's right, a lot of it 'disappeared' without being noticed or reported, so reentered circulation fairly quickly. How much of it was successfully laundered though? Didn't they catch the guy suspected of laundering them? (Someone behind btc-e if I recall) Don't really want to split hairs here, but there's still 137,891 BTC left in Mt Gox cold wallets that has yet to be liquidated by the administrators. (Out of the 200k that was 'found'). That's quite a significant amount by anyone's calculation.