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So, There's something like 21 million bitcoin possible, and 6 million 'in circulation' now. A sell order comes in for 1/12 of total amount of outstanding bitco
by wiredfool 15y ago
So, There's something like 21 million bitcoin possible, and 6 million 'in circulation' now. A sell order comes in for 1/12 of total amount of outstanding bitcoin. And the system processes it, flashcrashes, and. 3) Profit, I guess. or 4) rollback.
That's something like what would happen if someone dumped 1 trillion USD onto a bond exchange. There are only a couple entities who could do this.
So how did 1/12 of the value in this ecosystem wind up in one account at Mt Gox? I'd have to think that it's likely an insider/early adopter. (or Mt Gox itself?) There's a limit on the number of entities who could amass that sort of 'fortune'.
- thorax 15y agoAlmost feels like it's one of the MtGox accounts itself. Transaction-wise, it has been making easily 200-300 BTC a day. Perhaps also doing some personal buying and selling...
- wiredfool 15y agoSomeone on the forum (post 69 http://forum.bitcoin.org/index.php?topic=20207.msg252979#msg252979 http://forum.bitcoin.org/index.php?topic=20207.msg252979#msg... ) thinks that it's the pooled accounts of all the people on MtGox. Edit (added link) + post 122 as well. http://forum.bitcoin.org/index.php?topic=20207.120 http://forum.bitcoin.org/index.php?topic=20207.120
- vessenes 15y agoIt's absolutely not that. The Mt. Gox system does not allow orders like that.
- barkingcat 15y agoyah this comment is not realistic - Mt Gox wouldn't allow itself to be hacked if their "system" was strong enough to disallow "orders like that". It's not what Mt Gox allows that matters - it's been hacked and compromised specifically to allow people to do things that are not allowed
- vessenes 15y agoNo, I meant what I said. I reviewed the source code before making my post.
- romland 15y agoOr it could, again, be stupidity by MtGox: This was a "test account" that had no real user attached to it. After all, if the trade is internal on MtGox, it's just a double in a database. If that is the case, then hell yes, I can see why MtGox would want this rollback.
- ra 15y agoIf it was test entries in a database, then how could the OP transfer real BTC to his wallet?
- mahyarm 15y agoI don't know how Mt.Gox arranges it's accounts, but it's possible it came from the mt.gox BTC pool?
- keeperofdakeys 15y agoUnless it was the BTC mtgox directly own, that would mean that the BTC you upload aren't the ones that are transferred when you trade (remember BTC are unique). Although I haven't used MtGox, I was pretty sure that it is the case that BTC you upload are the ones that are transferred.
- colonelxc 15y agoWhen you transfer money to MtGox, you're essentially giving it to them. They give you a unique address to send to (so they know who sent the money to them), but after that transaction they have your money. Then, they just update the DB reflecting you have X amount of BTC in your account. As you trade with other people on the market, your respective accounts are updated in the DB. When you want to withdraw, you tell MtGox where to send the money. They check the DB and deduct that amount, and send that money from their big stash of everyone's money. That is why trades can be instantaneous, and don't require confirmation the network (except when you are sending to or withdrawing from MtGox itself). In this case, if you could hack the DB and convince MtGox that you had more BTC in your account than you really did, you could still withdraw BTC, but there would no longer be enough BTC for everyone to withdraw.
- jimrandomh 15y ago> So how did 1/12 of the value in this ecosystem wind up in one account at Mt Gox? The two leading theories are that it was the account that trading fees go into, or it was an account that didn't really have that many bitcoins, but had its balance altered by SQL injection.