Jeez, so they really were incompetent

MtGox said on Friday it found 200,000 “forgotten” Bitcoins on March 7, a week after the Tokyo-based digital currency exchange filed for bankruptcy protection saying it had lost about $500 million worth of Bitcoin, nearly all its holdings.

Kiddies playing rather than a sound business I think?

6 thoughts on “Jeez, so they really were incompetent”

  1. MtGOX stands for “Magic the Gathering Online eXchange”. It was originally formed to facilitate the exchange of virtual goods in online multiplayer games. So yes, kids playing.

  2. So Much for Subtlety

    It is amazing what you find down the back of the couch if you look.

    But they are a start up in a new area. What was Northern Rock’s excuse?

  3. Not just that, they were upto some right dirt when the exchange was up and running. They had bots making buy and sell orders to keep the price high, and were inserting malware onto their customers systems.

    Bitcoin is, and always has been, a cargo cult economy with lots of exchanges, securities, funds, etc run by people who had no idea what any of these things do but who’d seen Wall Street too many times and thought they were Gecko.

  4. “How does a sell order keep the price high?”
    By matching trades ratcheting the price up. If one’s both side of a trade it doesn’t matter what level the trade’s at.

  5. ^^^^^^^

    Yeah, what he said. Bear in mind that Gox was handling something like 60% of all BTC>USD/EUR/Actual Money transactions and they had a cap on their daily trades (of which a good portion were the Gox bots), so had a huge affect on the value of Bitcoin.

    Even if you were lucky enough to be an early adopter (and 75% of all bitcoins currently in circulation belong to these chaps – the vast majority of which have never been traded), theres no way to cash out your theoretical millions, even if Gox or one of the other exchanges could handle this you’d tank the market instantly.

Leave a Reply

Your email address will not be published. Required fields are marked *