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I'm the guy who bought 259684 Bitcoins for under $3000 yesterday (2011)
- grecy 13y agoSeeings this is from 2011, what was the outcome?
- loceng 13y agoAnd I am curious if the owners of Mt Gox are the ones that end up keeping these Bitcoins for themselves? Makes it quite the valuable business to be a middle person in..
- jimmcslim 13y agoThis is what the banking industry have known for years! Keep clipping the tickets...
- darkmighty 13y agoYep, bitcoin is being heralded as the great successor to malignant bankers and their greed only to be almost completely reliant on shady exchanges.
- dangero 13y agoExchange was rolled back to before the hack, so all transactions after that point were voided. In the end nothing happened except that people had their trades reverted during that time.
- Macha 13y agoThread from when this happened: http://news.ycombinator.com/item?id=2676263 http://news.ycombinator.com/item?id=2676263
- sailaway 13y agobitcoin had just hit a $1000 a piece.
- mcantelon 13y agoThis is from 2011.
- Matsta 13y agoWow so 259684 BTC at $939 (current buy price as I post this) is 243185236.74 = $243,185,236.74 :o
- kyyd 13y agopost is from 2011 though
- maaku 13y agoMore importantly the post is about an exchange failure that was rolled back.
- kaybe 13y agoIt's not that easy.. an amount that huge would definitely affect the market severely.
- adventured 13y agoThere's enough volume now to space a quarter of a billion dollar exit out over two quarters, and most likely at or above $1,000 per. Volume and demand will continue to increase predictably for while yet, making it even easier as each day passes.
- jmduke 13y agoThe hugest takeaways from the thread to me were that the administrators of Mt. Gox were way over their head, and that the posters on the Mt. Gox forum were about par for the course in terms of tech-skewed internet forums.
- sjtgraham 13y agoThat's the most worrying thing about BTC for me, too much of it is run by people in over their head, and now it's mega serious money.
- damian2000 13y agoAnd its still got a dodgy reputation, due to the difficulty of withdrawing USD, which can currently take weeks to arrive your account. Other services like bitstamp and coinbase have been eating their lunch.
- thechut 13y agoI was around when this happened. If I recall correctly, Mt. Gox ended up rolling back all the trades by doing a "restore" to a certain date before the sell off happened. toasty didn't get to keep any except for the 600 some he withdrew. He actually had to go through a lot of trouble to prove he wasn't the hacker originally responsible for the Mt. Gox hack.
- hoers 13y agothat sucks
- keyle 13y agoWas this title changed to [2011] only once it hit the front-page? I was on the forum reading the post with no date context, I thought it was "yesterday", up until I refreshed the home. Is this a common approach to get historical stuff on the home? Post an extraordinary title and let it rise to then rename it to the fact that it is historical?
- tokenizerrr 13y agoSubmitter puts in whatever, then when a mod notices it the title often gets changed.
- yelnatz 13y agoMods edit titles all the time.
- xerophtye 13y agoSame happened with me. i thought this happened last night. (lets not forget this is a NEWS site, so expecting posts about CURRENT events is the default modus operandi)
- kh_hk 13y agoOr well, you know, it got the attention of any mod once it reached the front-page.
- eonil 13y agoSo if he kept it, he now got about (1000/(3000/259684))x profit!
- dangero 13y agoThe important point about this incident was that there were no real Bitcoins involved. What happened was that someone added coins to an account balance on mtgox and then sold them. When you are using mtgox you are not actually buying and selling bitcoins. You are buying and selling IOUs for bitcoins and that is why MtGox was able to just roll back later.
- infinitone 13y agoWait... is that how an exchange works? or just gox? I mean, so do they only actually buy the bitcoins when the user wants to cash out from the account?
- damian2000 13y agoI believe some, like Bitstamp, trade by connecting actual buyers to actual sellers in the transaction, to limit their own amount of BTC and USD holdings. That's what it says on the FAQ anyway.
- ye 13y agoNot really true. You have to deposit your cash and/or your BTC into Bitstamp's accounts. Only then you can trade them. And you only get cash and/or BTC back when you withdraw. In between it's just a bunch of data being pushed around, no actual transactions (though they seem like transactions, they only exist inside Bitstamp's database).
- wmf 13y agoI think damian2000 was making a distinction between an exchange holding funds on behalf of customers and an exchange that trades with its own money.
- dangero 13y agoAn exchange is nothing more than a marketplace for buyers and sellers. They could in theory not buy the coins till you wanted to cash out, that would be a Ponzi scheme. That happened recently with a small exchange site. See this article: http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20131115000043&cid=1103 http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=2013... In general the way it works for a non ponzi scheme setup is that another user on MtGox is selling, and you are buying, so essentially if you buy, your account balance of coins goes up and at the same time the seller's balance goes down. Keep in mind though, no actual bitcoins moves because MtGox is holding them all in their account. It's exactly like what happens when you transfer money to someone who banks at the same bank as you. The money moves from one account to the other on the ledger, but really no money moved at all.
- wsxcde 13y agoThis part is interesting. > I attempted to withdraw the bitcoin balance into my own wallet, and hit the limit that Mt Gox has, preventing you from withdrawing more than $1000 USD worth of bitcoins (at the current market value) in a day. What is the reason for all the limits and delays that exchanges impose on converting Bitcoin into USD? These appear to prevalent even today. For example, MtGox says: > - Withdraws lower than 100.00 EUR are on average take less than a week. > - It takes at least a month on average for withdrawals larger than 10,000 EUR > - Withdrawals greater than 50,000 EUR need to be split it into multiple transfers or you can use the International Wire payment method.* Coinbase says: > I assume you're talking about selling coins here though. It's 100 BTC a day, and that can be done on successive days - in this example it would take 5 days to withdraw 500 BTC. Hope that helps! I guess the goal is to somehow prevent fraud. But (a) how do the delays and restrictions help? and (b) what is the long term prognosis here? Will these limits ever go away, and if so, what would have to change for this to happen?
- alanctgardner2 13y agoAs far as I can tell it also helps avoid bank runs. If you can only withdraw a small amount of your balance every day, it may prevent the price from tumbling precipitously when people get spooked - they would have to consciously cash out over many days. It might also allow the exchange to operate with money it doesn't actually have, but that's just speculation on my part.
- wsxcde 13y ago> As far as I can tell it also helps avoid bank runs. Sounds plausible but it puts the exchanges in a major position of power in the bitcoin economy. If they're actively managing liquidity of the BTC economy in this manner I have a hard time understanding why they're any better than the central banks that bitcoiners are attempting to disrupt. > It might also allow the exchange to operate with money it doesn't actually have, but that's just speculation on my part. Let's hope not, because that is literally a ponzi scheme.
- tedunangst 13y agoAn exchange shouldn't be vulnerable to bank runs. All of the money (USD, BTC) should be there all the time. They're not loaning it out. For that matter, the exchange shouldn't care what the price is. It's all just shiny beads to them.
- hkbarton 13y agoWhen everyone are talking about bitcoin, it's the time the bubble will burst
- antocv 13y agoThe bitcoin exchanges and trade platforms are a scam. Its a worse market than wallstreet. Read Kevins post without your bitcoin-glasses on for reasons why.
- josu 13y agoI wouldn't say it's a scam per se, but it could become one really fast. Right now there are 15 bitstamp employees, what's stopping any of them from taking the money and running?