Looks like Mt. Gox is dead...

[Mandres]

This is a very interesting problem, and the answer is quite complicated. This is what I have been able to gather from public sources, held together with various deductions and educated guesses ...

Very interesting, thanks for taking the time to lay it all out.

 

[88keys]

Cue the tards that whine about BTC not being as "safe" as other fiat currency. The especially stupid ones will call for regulation, while the point flies 1,000m above their heads.

Over one million people were Mt. Gox customers and they need to know what their immediate options are to deal with their financial losses. First, it’s important to understand that Mt. Gox is not a bank and it does not protect its users with a system similar to the FDIC or Federal Deposit Insurance Corporation. This means that there isn’t a neutral third-party protecting the money you held at Mt. Gox. The FDIC provides insurance up to $250,000 on deposits in bank accounts to help assure us that our money won’t evaporate, if the bank shuts down like Mt. Gox.
Mt. Gox. could have provided the same service by purchasing a separate insurance policy on their BTC deposits. The insurance would’ve been on behalf of the one million users that have lost $409.2 million overnight. Unfortunately, Mt. Gox does not provide insurance or any assurances for a user’s account. Thus, we’re left in the wind – cold and unprotected

 

[jagec]

I have to ask, when you say "lost $300k" does that mean they invested 300k or that they just lost 300k in "current bitcoin valuation" because...there's a big difference.

463 bitcoins.

Much like 463 Dutch tulips, 463 shares of Enron, 463 shares of Facebook...

 

[BoberFett]

Pigs are real.

So they ran off with the futures contracts?

 

[halik]

Guy on the right....down $300k...

http://www.theverge.com/2014/2/19/5425220/protest-at-mt-gox-bitcoin-exchange-in-tokyo

lol google glass

 

[Imp]

I wonder how many of these are true

http://www.reddit.com/r/Bitcoin/comments/1yv26o/gox_horror_story_thread_how_much_did_you_lose/

Serious... A lot look like trolls. If not, people losing tens of thousands left and right. And last I checked, most people don't save money...

Edit: Got my answer. People took from HELOC and other loans.

 

[BoberFett]

I have to ask, when you say "lost $300k" does that mean they invested 300k or that they just lost 300k in "current bitcoin valuation" because...there's a big difference.

Exactly. That's what bitcoiners repeatedly fail to grasp.

I can claim that the sticky note I just wrote the words "1 BoberBuck" on is worth $1,000,000 USD at MtFett.com, but it's really worth somewhere between jack and squat, depending on the time of day.

 

[jagec]

Serious... A lot look like trolls. If not, people losing tens of thousands left and right. And last I checked, most people don't save money...

Edit: Got my answer. People took from HELOC and other loans.

People bought bitcoins...using LEVERAGE?

D:

 

[lxskllr]

Exactly, it's a bearer instrument. The user is charge of their own security, and if they blow it, tough shit. That's a feature. You wouldn't give your money to someone with a smooth talk, and nice suit, so I don't know why people expect bitcoin to be any different. The individual is 100% accountable for their own funds. If you trust someone to hold it for you, you better choose well. Otherwise, hold your own money.

 

[waggy]

Serious... A lot look like trolls. If not, people losing tens of thousands left and right. And last I checked, most people don't save money...

Edit: Got my answer. People took from HELOC and other loans.

yeah seems some were fucking idiotic. getting laons to buy them?

 

[BoberFett]

Serious... A lot look like trolls. If not, people losing tens of thousands left and right. And last I checked, most people don't save money...

Edit: Got my answer. People took from HELOC and other loans.

LOL, so people actually invested real money into MtGox backed bitcoins? People who mined them in their spare time, sure they'll be annoyed that lost value, but to actually invest real money in something like that?

They're getting what they deserve.

 

[dr150]

I have to ask, when you say "lost $300k" does that mean they invested 300k or that they just lost 300k in "current bitcoin valuation" because...there's a big difference.

The guy was on a TV show today and said it was a $300k investment into bitcoin/Mt. Gox.

He's been camped out in front of their offices since Feb. 14, and he's seen nobody that appeared to be working there aside of the occasional office light turning on & off.

 

[88keys]

Perhaps. I have mixed views on it myself. At the end of the day nobody told anybody to invest in bitcoins nor use mt.gox.
Being that bitcoins are relatively new, it would be wise to do some measure of research before trusting another person to hold your bitcoins.

But not having safeguards and protection is ultimately going to drive more people away than it will attract. Without rules and regulation, you can't honestly expect that everybody is going to get together and "do the right thing". It's going to reach a point to where scams and fraud are rampant and basically sow the seeds of it's own destruction.

Bitcoin might be here to stay or it might not. But I'm leaning toward the latter.

 

[waggy]

LOL, so people actually invested real money into MtGox backed bitcoins? People who mined them in their spare time, sure they'll be annoyed that lost value, but to actually invest real money in something like that?

They're getting what they deserve.

oh man. i just read one where a guy took his kids college fund and invested it in bitcoin (54 coins) at MtGox...

i don't know if i should laugh at the guy or feel bad for him.

 

[jagec]

oh man. i just read one where a guy took his kids college fund and invested it in bitcoin (54 coins) at MtGox...

i don't know if i should laugh at the guy or feel bad for him.

Depends, do you feel sorry for people who send money to Nigerian princes?

 

[Imp]

People bought bitcoins...using LEVERAGE?

D:

yeah seems some were fucking idiotic. getting laons to buy them?

Okay, I kept reading and found ONE suicide so far. Not sure if real, but the guy would have had about $500k?

 

[Ns1]

Serious... A lot look like trolls. If not, people losing tens of thousands left and right. And last I checked, most people don't save money...

Edit: Got my answer. People took from HELOC and other loans.

Source?

 

[waggy]

ones like this are hard. I want to respond how fucking idiotic he is. but man IF true..damn


I want to start off by saying that I've been waiting for this moment for a while. I knew it was bound to happen sooner or later, as soon as we weren't able to withdraw our coins from Mt. Gox weeks ago. I stupidly had my life's savings in bitcoin, and when the price started to fall, I converted to dollars and watched the price plummet. I lost $357,000. Not to try to earn a bunch of sympathy or anything but this was not only my money but it was going to be my 5 year old son's education fund which i took out of fidelity about 1 year ago to mess with bitcoins. I dont know what the fuck to do any more. I'm sitting here on reddit looking for comfort or just something but I don't know what I'm going to do now at all. I don't have shit to live for any more and the only thing I have left is just talking about it here I guess. I can't express what I'm feeling right now. THat shit was just sitting there and I couldn't take it out how could this whole shop just pack up and dissapear? I don't know if anyone here knows the facts or whats going on but I want to or if you have any slighest shred of evidence that its possible they arent really gone please et me know here. if im never going to see my money again all of it im going to either kill myself which i dont want to do because i want to live even though i have nothing to live for now, except my son who is now completely fucked

 

[Imp]

Source?

The thread you linked. Just open more replies and do a CTRL+F on "credit" or "loan". I found instances of it happening, not saying everyone. Then again, these are just people on the internet posting to REDDIT.

 

[KeithTalent]

ones like this are hard. I want to respond how fucking idiotic he is. but man IF true..damn


I want to start off by saying that I've been waiting for this moment for a while. I knew it was bound to happen sooner or later, as soon as we weren't able to withdraw our coins from Mt. Gox weeks ago. I stupidly had my life's savings in bitcoin, and when the price started to fall, I converted to dollars and watched the price plummet. I lost $357,000. Not to try to earn a bunch of sympathy or anything but this was not only my money but it was going to be my 5 year old son's education fund which i took out of fidelity about 1 year ago to mess with bitcoins. I dont know what the fuck to do any more. I'm sitting here on reddit looking for comfort or just something but I don't know what I'm going to do now at all. I don't have shit to live for any more and the only thing I have left is just talking about it here I guess. I can't express what I'm feeling right now. THat shit was just sitting there and I couldn't take it out how could this whole shop just pack up and dissapear? I don't know if anyone here knows the facts or whats going on but I want to or if you have any slighest shred of evidence that its possible they arent really gone please et me know here. if im never going to see my money again all of it im going to either kill myself which i dont want to do because i want to live even though i have nothing to live for now, except my son who is now completely fucked

Man, people are so fucking stupid sometimes and they completely screw their kids over too. Feel bad for his kid. Morons like this make me angry.

KT

 

[dighn]

LOL, so people actually invested real money into MtGox backed bitcoins? People who mined them in their spare time, sure they'll be annoyed that lost value, but to actually invest real money in something like that?

well somebody has to buy all those mined bitcoins and make BTC actually worth something.

BTC is a great concept, but without safe guards and regulation, human greed and incompetence are its undoing.

 

[surfsatwerk]

So they ran off with the futures contracts?

I don't speak your crazy moon talk.

 

[lxskllr]

ones like this are hard. I want to respond how fucking idiotic he is. but man IF true..damn

Maybe I'm too cynical, but I give stuff like that the same credence as 4chan stories. I suppose there really are people that foolish out there, but they kind of deserve it. I'm generally a fan of bitcoin, but anyone trying to make money with it, that doesn't treat it the same as gambling is a fool. If you wouldn't put the money on blackjack, you shouldn't put it on bitcoin.

 

[dr150]

ones like this are hard. I want to respond how fucking idiotic he is. but man IF true..damn


I want to start off by saying that I've been waiting for this moment for a while. I knew it was bound to happen sooner or later, as soon as we weren't able to withdraw our coins from Mt. Gox weeks ago. I stupidly had my life's savings in bitcoin, and when the price started to fall, I converted to dollars and watched the price plummet. I lost $357,000. Not to try to earn a bunch of sympathy or anything but this was not only my money but it was going to be my 5 year old son's education fund which i took out of fidelity about 1 year ago to mess with bitcoins. I dont know what the fuck to do any more. I'm sitting here on reddit looking for comfort or just something but I don't know what I'm going to do now at all. I don't have shit to live for any more and the only thing I have left is just talking about it here I guess. I can't express what I'm feeling right now. THat shit was just sitting there and I couldn't take it out how could this whole shop just pack up and dissapear? I don't know if anyone here knows the facts or whats going on but I want to or if you have any slighest shred of evidence that its possible they arent really gone please et me know here. if im never going to see my money again all of it im going to either kill myself which i dont want to do because i want to live even though i have nothing to live for now, except my son who is now completely fucked

I call shens on such stories.

Anybody who's invested in Bitcoins has a basic understanding of the highly speculative nature of such an asset, not backed or secured by anything.

I can't see someone who's earned a good amount of life savings (his savings profile would assume someone who's thrifty, smart and good earner) invest that nestegg base in something as historically bouncy as bitcoin or a penny stock for that matter.

I can realistically see people invest a "loseable" max 5-10% speculative amount of savings to play around in this arena, but no more. IF someone lost $1M at Mt. Gox, then I'd assume that person has $9M more at his drug den.

 

[zinfamous]

Exactly, it's a bearer instrument. The user is charge of their own security, and if they blow it, tough shit. That's a feature. You wouldn't give your money to someone with a smooth talk, and nice suit, so I don't know why people expect bitcoin to be any different. The individual is 100% accountable for their own funds. If you trust someone to hold it for you, you better choose well. Otherwise, hold your own money.

I'm not so sure that replacing "smooth talking, nice suit man" with "undisclosed internet entity" is an improvement.

:hmm: