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That's funny... When Lehman Bros went down, the US economy went to hell. When MtGox went down, the bitcoin price returned to its previous level within a coupl
by drcode 13y ago
That's funny...
When Lehman Bros went down, the US economy went to hell.
When MtGox went down, the bitcoin price returned to its previous level within a couple days.
Clearly we need more oversight of bitcoin.
- vonmoltke 13y agoThe assets lost in MtGox were a rounding error for Lehman.
- Crito 13y agoIn terms of USD, or in terms of market cap?
- benaiah 13y agoYes, but as a proportion of the relevant market, they were far greater, which actually strengthens the point.
- vonmoltke 13y agoNo it doesn't. The relevant market is trivial compared to the size of the global financial system. The entire Bitcoin market could evaporate today and cause barely a ripple. Lehman had significant assets in the fiat currency of the largest economy in the world, a fiat currency that also forms significant portions of the cash reserves of other major economies. This is to say nothing of the interconnected investments and chain reactions this caused, since it wasn't just about the amount of money lost but whose money.
- benaiah 13y agoYes, everything you say is correct (AFAIK), but it's not what I was talking about. The thesis of my comment was this: the collapse of MtGox involved a larger proportion of the bitcoin market than the proportion of the dollar market involved in the collapse of Lehman. Ergo, the collapse of MtGox is more significant to Bitcoin than the collapse of Lehman was to the dollar.