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How would we know that they haven't just paid someone (with a lot of bitcoins) $20k to sign that message?
by robzyb 13y ago
How would we know that they haven't just paid someone (with a lot of bitcoins) $20k to sign that message?
- brokenmusic 13y agoWhy would that anyone holding a lot of coins need some incomparably small sum from MtGox while he can clearly make more selling it before the meltdown on other exchanges?
- kalleboo 13y agoBy propping up MtGox he'd be keeping the value of his Bitcoins up. If MtGox fails, there'll be a huge dip in the price of BTC across all the exchanges.
- brokenmusic 13y agoHe can also be the first to sell on another exchange and buy at the bottom. More profit, less risk.
- atmosx 13y agoYou don't. But it's better then nothing at least as a PR. On the other hand, I know of no bank that could get it's head straight around a bank-run.
- Mtinie 13y agoI would agree with you, in the context of the fractional reserve system. But in the case of a cryptocurrency exchange the credits and debits should be more or less equal, minus the trading fees. At least, that's how places like Mt. Gox promote themselves. It may take longer to get your funds, if there is a "run" on the exchange, because of the flood of transactions into the system and the need to reconcile everything, but that would likely be measured in a few hours extra, not days/weeks.
- fragsworth 13y agoWe don't, we just have to guess at the likelihood of that kind of thing actually happening for $40+ million in bitcoins. Also, it's less likely to be a lie if they do it sooner rather than later.
- deleted 13y ago[deleted]