4 ms·
Start : (Markus: $0) (Joe: 1BTC) Step 1: (Markus: $1200) (Joe: 1BTC) Step 2: (Markus: 1BTC) (Joe: $1200) Step 3: (Markus: $200) (Joe: 1BTC, $1000) Step 4: P
by deckar01 12y ago
Start : (Markus: $0) (Joe: 1BTC)
Step 1: (Markus: $1200) (Joe: 1BTC)
Step 2: (Markus: 1BTC) (Joe: $1200)
Step 3: (Markus: $200) (Joe: 1BTC, $1000)
Step 4: Piss off Joe by preventing him from withdrawing his imaginary profits.
I don't understand what Markus gains in this situation.
- SoftwareMaven 12y agoMarkus' $1200 isn't his (in fact, it never existed), whereas Joe's $200 is very real. Markus gains $200.
- jabagawee 12y agoAssuming "Joe" represents the entire userbase of Mt. Gox, which deposited its own money into the system: Start : (Markus: $0) (Joe: 1BTC, $200) Step 1: (Markus: $1200) (Joe: 1BTC, $200) Step 2: (Markus: 1BTC) (Joe: $200 + 1200) Step 3: (Markus: $200) (Joe: 1BTC, $1200) Assuming Markus withdraws fiat before Joe does, Mt. Gox only had $200 in real money and $1200 in fake make-believe numbers, so Joe is left unable to withdraw.
- deckar01 12y agoBut it seems like if they were pumping the price up, then a lot of active traders would be holding fake USD. Mt. Gox can't tell if it is accepting real or fake USD while dumping. I think my first post outling a possible scenario that generate nothing except perceived loss to users once they can't withdraw.
- tempestn 12y agoWhen a user does not yet have sufficient USD on deposit with Gox to buy the bitcoins they want, they deposit more, and MtGox now has more real USD under their control. It's not a matter of selling the coins for real vs fake USD.
- deckar01 12y agoThe question is how much new cash was really put into Mt. Gox to buy while they were dumping and the price was crashing?