Bitcoin at all time high

[BetCheckBet]

https://en.bitcoin.it/wiki/MtGox

MtGox, called "Mount Gox" or "MTGOX", has been the most widely used bitcoin currency exchange market[1] since it was started, and remains the largest in terms of popularity and volume.

A registrant on MtGox has at least two sub-accounts: one for bitcoins (BTC), and one for US dollars (USD or MTGUSD) or other national currency. Bitcoins are bought using funds from the trader's national currency account, and the proceeds from the sale of bitcoins are deposited into the same account. Trading must always involve bitcoins as trading between different national currencies is not offered.

Trades on Mt. Gox's execute from balances on deposit with the exchange which in turn makes trading on the market instantaneous, compared to some other Bitcoin markets where a subsequent settlement occurs manually between the trading partners. The disadvantage of this is that a third party must be trusted with keeping the money safe.
MtGox was originally started by Jed McCaleb in July 2010, and was sold to Tibanne Co. in Japan in March 2011. It is currently operated by Tibanne Co., managed by Mark Karpeles (MagicalTux).

[cmoney]

I am confused. So Person A sells 60 bitcoins to Person B for 12,000 usd. Who is paying the 12k to person A. Who pays out the conversion? At the end of the day someone has the real currency

mtgox takes a 0.6% commision. Mtgox allows people to hold two accounts bitcoins and cash. They use this to facilitate the transfer between parties as I understand.

So Mtgox pays the real cash to people when they want to cash out? So I think you are right that there could be a "run on the bank" if a large amount of people have real cash accounts with MTgox and then all try to withdrawal at same time. Or am i missing something?

[BetCheckBet]

mtgox takes a 0.6% commision. Mtgox allows people to hold two accounts bitcoins and cash. They use this to facilitate the transfer between parties as I understand.

So Mtgox pays the real cash to people when they want to cash out? So I think you are right that there could be a "run on the bank" if a large amount of people have real cash accounts with MTgox and then all try to withdrawal at same time. Or am i missing something?

Correct.

There have been cases in the past where mt gox has locked accounts for months as well. Its pretty much analogous to trusting an online casino.

Supposedly mtgox is regulated but I'd really question what sort of options users have if the shit hits the fan.

[sonatine]

the closest thing to regulators mt gox has:

[cmoney]

So Mtgox pays the real cash to people when they want to cash out? So I think you are right that there could be a "run on the bank" if a large amount of people have real cash accounts with MTgox and then all try to withdrawal at same time. Or am i missing something?

Correct.

There have been cases in the past where mt gox has locked accounts for months as well. Its pretty much analoguous to trusting an online casino.

Supposedly mtgox is regulated but I'd really question what sort of options users have if the shit hits the fan.

Probably explains the main reason behind shutting down for a day. They had to figure out a plan if this happens.

I give Mt GOX +190 on opening within 10 mins of the scheduled time which I believe is in 10 mins or so.

[Deal]

wtf does this mean? The exchanges are not holding funds for anyone, they just match buyers to sellers. A bank has deposits and they hold a percentage of them for the purpose of cashouts. A bank run happens when depositors come in mass to withdraw and the bank doesn't have enough on hand. How does that relate to an exchange that holds no assets?

I dont understand how the bid and the ask can be the same on these exchanges. How do they make money?

They do have a spread, so they make bank on every transaction.

As for the money, the exchange should never have exposure to the price of the bitcoins. Just like a currency exchange doesn't have exposure to the value of currencies.

The buyer of the bitcoins is giving the exchange the amount of US dollars (or whatever currency) that the seller of the bitcoins agreed to as per the trade. The exchange then passes that amount of currency over to the seller, minus their cut. They also ship the bitcoins to the buyer.

Need a cmoney/china radio show with Micon and friend on as a guest to clear all this shit up.

[Dan Druff]

LOL, it's 7pm PDT (the time Gox was supposed to repoen) and it's unreachable.

Let the run on the bank begin.

[cmoney]

I dont understand how the bid and the ask can be the same on these exchanges. How do they make money?

They do have a spread, so they make bank on every transaction.

As for the money, the exchange should never have exposure to the price of the bitcoins. Just like a currency exchange doesn't have exposure to the value of currencies.

The buyer of the bitcoins is giving the exchange the amount of US dollars (or whatever currency) that the seller of the bitcoins agreed to as per the trade. The exchange then passes that amount of currency over to the seller, minus their cut. They also ship the bitcoins to the buyer.

Need a cmoney/china radio show with Micon and friend on as a guest to clear all this shit up.

There seems to be 4-5 exchanges with completely different pricing. I dont understand why you would sell bitcoins on an exchange that is 5 usd less than another. But it seems to be happening.

[Sandwich]

Gox looks open to me. Last price:$78.05000

[donkdowndonedied]

Mtgox definitely does keep funds. You have BTC balance and USD. (if american)

I am not so sure they aren't regulated. They are able to do either ACHs or wire-transfers and they want the full gamut of documentation before you can withdraw. I tried this once, gave them what they asked for, no response. 2 months later I get an email saying it was denied, but by then I had moved on after SELLING my BTC then buying it back to xfer out because I was tired of their slow ass bullshit. I used coinbase, which sucked for low daily limits but at least I didn't have to do the whole 2 ID blah blah, no response, website not written by native english speaker. I believe mtgox is japanese, not 100% sure. I would think that to deal with American banking system you have to be regulated on some level.

This is why I snicker when I see people talk bout btc not being liquid. It is far more liquid in the digital economy. It is USD that isn't liquid once you are online.

If most of the people doing the bankrun are American, they don't need to shutdown a day to prevent this. I'm sure a lot of people haven't submitted documentation. It is the same shit why I couldn't deposit money on Etrade to get down money on presidential races with skewed lines. American banking system sucks when the uber rich are allowed to evade taxes like crazy and little guys like me can't get a few K into an account without jumping through hoops.

[Sandwich]

There seems to be 4-5 exchanges with completely different pricing. I dont understand why you would sell bitcoins on an exchange that is 5 usd less than another. But it seems to be happening.

I noticed this too. In fact, some of the differences looked way more than 5 USD.

For the life of me I couldn't figure out how one would make a trade on some of those exchanges tho. (CampBX "depth tables", for example).

[donkdowndonedied]

So Mtgox pays the real cash to people when they want to cash out? So I think you are right that there could be a "run on the bank" if a large amount of people have real cash accounts with MTgox and then all try to withdrawal at same time. Or am i missing something?

The question I have is does Mt Gox have issues with chargebacks ? Thats how they'd be fucked and not be able to cover funds. That, or a gambler was running the operation or something else shady. With all this recent volume at large prices, they should have plenty of capital to cover their expenses.

[Crowe Diddly]

So Mtgox pays the real cash to people when they want to cash out? So I think you are right that there could be a "run on the bank" if a large amount of people have real cash accounts with MTgox and then all try to withdrawal at same time. Or am i missing something?

The question I have is does Mt Gox have issues with chargebacks ? Thats how they'd be fucked and not be able to cover funds. That, or a gambler was running the operation or something else shady. With all this recent volume at large prices, they should have plenty of capital to cover their expenses.

I don't think they accept any method of payment that allows chargebacks.

[Deal]

Mtgox definitely does keep funds. You have BTC balance and USD. (if american)

I am not so sure they aren't regulated. They are able to do either ACHs or wire-transfers and they want the full gamut of documentation before you can withdraw. I tried this once, gave them what they asked for, no response. 2 months later I get an email saying it was denied, but by then I had moved on after SELLING my BTC then buying it back to xfer out because I was tired of their slow ass bullshit. I used coinbase, which sucked for low daily limits but at least I didn't have to do the whole 2 ID blah blah, no response, website not written by native english speaker. I believe mtgox is japanese, not 100% sure. I would think that to deal with American banking system you have to be regulated on some level.

This is why I snicker when I see people talk bout btc not being liquid. It is far more liquid in the digital economy. It is USD that isn't liquid once you are online.

If most of the people doing the bankrun are American, they don't need to shutdown a day to prevent this. I'm sure a lot of people haven't submitted documentation. It is the same shit why I couldn't deposit money on Etrade to get down money on presidential races with skewed lines. American banking system sucks when the uber rich are allowed to evade taxes like crazy and little guys like me can't get a few K into an account without jumping through hoops.

Listen up. The question isn't do they hold US dollars, or some other currency on behalf of clients. They can hold peoples US dollars and they can hold peoples bitcoins but never do they hold the value of someones bitcoins in US dollars or someones US dollars in bitcoins. For this reason they are not exposed to the volatility of the market they run. They are not a middleman buying and reselling bitcoins. They simply match buyers with sellers.

Do you understand?

[sonatine]

75

[kmksmkn]

whats another good one to use beside Mt Gox I cash in and out of my ipoker account using bitcoin and am looking to cashout soon. Im a newbie with this bitshit

[cmoney]

The fucking trading engine on Gox lags by nearly 10 mins

lmfao

[sonatine]

70

[simpdog]

The fucking trading engine on Gox lags by nearly 10 mins

lmfao

If the price of shit coins goes down to $50, what are odds that mt gox has to go down for maintenance for 24 hours?

[cmoney]

The fucking trading engine on Gox lags by nearly 10 mins

lmfao

If the price of shit coins goes down to $50, what are odds that mt gox has to go down for maintenance for 24 hours?

I think they are pretty much stuck with whatever happens now. Closing down only hurts even more at this point.

btw, according to these real time feeds bincoin 24 is already trading coins in low 50s