howard_hughes
Elite Member
- Jul 23, 2009
- 5,066
- 3,738
got an email.. saying mtgox login was successful, thank god i never bought using their service 
hope virwox isnt next
hope virwox isnt next
rlloydevans
Newbie
- Jan 23, 2014
- 36
- 23
The basic weakness of the crypto currencies is that you must trust the exchanges. You have to be able to implicitly trust their honesty and security. The people running the exchanges must be held to the highest confidence. The exchanges themselves must be 100% foolproof and hack proof.
Sadly, they are not. In most cases we don't know who is running the exchanges and have not a clue if they and their employees can be trusted. That is because there is no vetting, no security checks, no minimal standards except the ability to put up a site and market it. This is an incredibly opaque system that we all must trust.
And we have seen how secure the systems are over the past few months.
If you cannot trust the exchanges then the crypto currencies are fools gold.
Sadly, they are not. In most cases we don't know who is running the exchanges and have not a clue if they and their employees can be trusted. That is because there is no vetting, no security checks, no minimal standards except the ability to put up a site and market it. This is an incredibly opaque system that we all must trust.
And we have seen how secure the systems are over the past few months.
If you cannot trust the exchanges then the crypto currencies are fools gold.
crazedspyker
Senior Member
- Jan 5, 2010
- 1,004
- 661
I see a lot of new buy orders coming up at my exchange, so there people taking advantage of this already. I'm not a gambler, but I like to have fun buying/selling. I just bought a little during this crash. Not enough that I would miss it if it crashed even more, but enough that I can make a bit of profit.
I'll buy some now, and when it hits bottom I'll buy some more.
I'll buy some now, and when it hits bottom I'll buy some more.
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Junkfood00
Elite Member
- Sep 13, 2011
- 1,947
- 1,340
No serious people invest in bitcoin. Anyone doing that has gone beyond gambling and here are the consequences.
Enjoy it.
Enjoy it.
jazzc
Elite Member
- Jan 27, 2009
- 2,964
- 14,717
Reminds me of those MLM scripts: "This is for serious people only"
You should probably stay out if you think so.
rlloydevans
Newbie
- Jan 23, 2014
- 36
- 23
condadon -
Not a valid point. The reason is that if you use a monetary system with safeguards, there are options if there is abuse. It doesn't mean there will be abuse, humans and organizations do stupid things (think Madoff and the Greek government to name two unhappy examples). Yet despite the problems in the system there are minimum standards banks and bankers must meet. If money comes missing it is insured and the account holder gets their money back. Bankers are required to meet minimum liquidity levels, and if something happens to the system there is a government to step in to make sure that there is minimal liquidity to keep things going. The perfect example was the financial melt down of 2007-2008. There was not a problem with the US$, Euro or Yen, it was a break down in the exchange systems. Governments stepped in. For banks that failed the account holders received their money back.
Not so with crypto currencies. Bankers are stupid? What do you think the exchanges are? Except these exchanges have no government over sight, rules, regulations to keep them honest. What is there to keep the exchanges honest?
(crickets chirping in the background)
And that is the difference. Hate banks? Okay. Hate the creep of governmental big brother. I understand it, so do I. But trusting my money to a bunch of people I do not know and who have no control or no guarantee that they can be trusted to any degree? It is like walking out my door and handing $5000 to the first person I see and say "Watch this for me? I'll be back in two weeks."
Not a valid point. The reason is that if you use a monetary system with safeguards, there are options if there is abuse. It doesn't mean there will be abuse, humans and organizations do stupid things (think Madoff and the Greek government to name two unhappy examples). Yet despite the problems in the system there are minimum standards banks and bankers must meet. If money comes missing it is insured and the account holder gets their money back. Bankers are required to meet minimum liquidity levels, and if something happens to the system there is a government to step in to make sure that there is minimal liquidity to keep things going. The perfect example was the financial melt down of 2007-2008. There was not a problem with the US$, Euro or Yen, it was a break down in the exchange systems. Governments stepped in. For banks that failed the account holders received their money back.
Not so with crypto currencies. Bankers are stupid? What do you think the exchanges are? Except these exchanges have no government over sight, rules, regulations to keep them honest. What is there to keep the exchanges honest?
(crickets chirping in the background)
And that is the difference. Hate banks? Okay. Hate the creep of governmental big brother. I understand it, so do I. But trusting my money to a bunch of people I do not know and who have no control or no guarantee that they can be trusted to any degree? It is like walking out my door and handing $5000 to the first person I see and say "Watch this for me? I'll be back in two weeks."
rlloydevans
Newbie
- Jan 23, 2014
- 36
- 23
Tosmekop
There is a huge difference between publishing a staff roster, and vetting those people. Criminal records? backgrounds checks? Surety Bonds for employee malfeasance? Where is the checks and balances to make sure the exchange isn't tinkering with the numbers - like the London Banks who were caught fiddling with LIBOR?
Umm - not so much. In crypto currencies such a problem likely would never be caught.
Give me an exchange that carries a bond from Lloyds of London or equivalent, and I'll be interested.
And the trouble is the value of all crypto currencies are tied not to one exchange but to the performance of all exchanges involved in the currency. If all but one is solid, the one that is not brings everybody down, because the one spoils the entire market.
There is a huge difference between publishing a staff roster, and vetting those people. Criminal records? backgrounds checks? Surety Bonds for employee malfeasance? Where is the checks and balances to make sure the exchange isn't tinkering with the numbers - like the London Banks who were caught fiddling with LIBOR?
Umm - not so much. In crypto currencies such a problem likely would never be caught.
Give me an exchange that carries a bond from Lloyds of London or equivalent, and I'll be interested.
And the trouble is the value of all crypto currencies are tied not to one exchange but to the performance of all exchanges involved in the currency. If all but one is solid, the one that is not brings everybody down, because the one spoils the entire market.
jazzc
Elite Member
- Jan 27, 2009
- 2,964
- 14,717
The financial crisis was a direct consequence of the bubble created by the huge increase in the money supply for decades, in case you are not aware. This is impossible with BTC.
hatemachine
Regular Member
- Jan 14, 2011
- 277
- 1,156
PinguSpy
Elite Member
- Dec 7, 2007
- 3,085
- 3,029
Danggggggggg...
Im kinda lucky dint use mtgox. Just stay with bitstamp. But what ever it is, my btc stay in wallet. Only transfer to exchange when i need to sell it.
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crackarama
Regular Member
- Aug 14, 2013
- 423
- 124
yeah they have been cracking mtgox for ages now.want a tip? use BTCE there struggling to get into that
The man you are indeed talking about is Eric Vorhees, he sold SatoshiDice.com for 120.000 bitcoins back in 2012.. 500 bitcoins are peanuts for him
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HookUPcom2
Regular Member
- Dec 15, 2009
- 351
- 142
$500,000,000 or so hack... wow.
whynotmakeit
Power Member
- Feb 26, 2012
- 613
- 325
got to be tempting........
No serious people invest in bitcoin. Anyone doing that has gone beyond gambling and here are the consequences.
Enjoy it.
High Profile Bitcoin Investors
Richard Branson, well you know sir Branson
David Marcus, Paypal Prez
Peter Thiel, PayPal founder
Chamath Palihapitiya - Early Facebook Exec, Venture capitalist
Marc Andreesen, Ben Horrowitz - #1 Venture Capitalist in Silicon Valley
Michael Novogratz - CEO, Fortress Investment
Winklevii - claimed Facebook originators
Sean Parker - Napster Founder
Shakil Khan - Early-Investor and Head of Special Project at Spotify
Exante (Malta based bitcoin hedge fund) breaking world record returning 5000% to investors within 2 years...
exante. eu/press/news/397/
Basically, just a bunch of idiots..