4 ms·

Not impossible, but you're not getting your money in less than 4-6 weeks. Although, looking at various complaints on forums, some people have been waiting since

Not impossible, but you're not getting your money in less than 4-6 weeks. Although, looking at various complaints on forums, some people have been waiting since June/July or longer for withdrawals. Gox really needs to get its act together on this. They're not the only exchange in town anymore; they're not even the biggest exchange anymore. https://support.mtgox.com/entries/21649594-Withdrawals-and-Deposits https://support.mtgox.com/entries/21649594-Withdrawals-and-D...

bdcravens 13y ago
True, "impossible" is wrong word to use, but point is that there's still a premium on the price due to the illiquidity.
DrStalker 13y ago
Is it possible MtGox is a ponzi-scam style operation, that can't pay out users in a timely manner because they no longer actually have the money they claim to have?
- cturner 13y ago
  It's a good theory. This is interesting because bitcoin is presented as a reliable store of value, but I bet a lot of people who trade on exchanges leave their coins with the exchange for convenience. So - what if some operators hold less coins than they claim to have, and are shuffling around from a fractional reserve, as you describe? There would be more coins in the system than actually exist. I get lost in the M1/M3 representation of volumes of money, but that starts to reintroduce some of the confidence problems with paper money. But - if this problem exists - it will be temporary, and is not inherent to bitcoins. Either the ecosystem will evolve so people stop holding coins at the exchange, or there'll be a couple of run events causing a loss of confidence in exchanges for storage.
- speeder 13y ago
  MtGox does not have the money, that is no secret, but it is NOT because they are a scam. It is because US government poached their money.
  - adrianwaj 13y ago
    Are you sure about all that.. I read they have a large stash of their own bitcoins..?
    - wmf 13y ago
      Here's more detailed speculation on MtGox's solvency: "The good news is that MtGox made huge bitcoin profits over its lifetime, which are more than enough to cover the holes in operating capital due to seized accounts and the lawsuit filed by Coinlab. The bad news is that no one knows if MtGox kept the bitcoin, or traded it for fiat." http://blog.standardcrypto.com/2013/09/07/who-will-buy-mtgox/ http://blog.standardcrypto.com/2013/09/07/who-will-buy-mtgox...

bdcravens 13y ago

True, "impossible" is wrong word to use, but point is that there's still a premium on the price due to the illiquidity.

DrStalker 13y ago

Is it possible MtGox is a ponzi-scam style operation, that can't pay out users in a timely manner because they no longer actually have the money they claim to have?

cturner 13y ago
It's a good theory. This is interesting because bitcoin is presented as a reliable store of value, but I bet a lot of people who trade on exchanges leave their coins with the exchange for convenience. So - what if some operators hold less coins than they claim to have, and are shuffling around from a fractional reserve, as you describe? There would be more coins in the system than actually exist. I get lost in the M1/M3 representation of volumes of money, but that starts to reintroduce some of the confidence problems with paper money. But - if this problem exists - it will be temporary, and is not inherent to bitcoins. Either the ecosystem will evolve so people stop holding coins at the exchange, or there'll be a couple of run events causing a loss of confidence in exchanges for storage.
speeder 13y ago
MtGox does not have the money, that is no secret, but it is NOT because they are a scam. It is because US government poached their money.
- adrianwaj 13y ago
  Are you sure about all that.. I read they have a large stash of their own bitcoins..?
  - wmf 13y ago
    Here's more detailed speculation on MtGox's solvency: "The good news is that MtGox made huge bitcoin profits over its lifetime, which are more than enough to cover the holes in operating capital due to seized accounts and the lawsuit filed by Coinlab. The bad news is that no one knows if MtGox kept the bitcoin, or traded it for fiat." http://blog.standardcrypto.com/2013/09/07/who-will-buy-mtgox/ http://blog.standardcrypto.com/2013/09/07/who-will-buy-mtgox...