AVS Forum banner

1 - 20 of 60 Posts

·
Registered
Joined
·
2,309 Posts
Discussion Starter · #1 ·
 http://blogs.marketwatch.com/thetell/2014/02/25/mt-goxs-hidden-note-hints-at-hopes-for-acquisition/


Mt. Gox’s hidden note hints at hopes for acquisition amid tales of bitcoin losses

February 25, 2014, 7:23 AM

Share:

More

Email Print


Mt. Gox website screenshot

A commented-out note in the website source code for Mt. Gox.


Bitcoin — and the fall of Mt. Gox in particular — is the story that no one can stop talking or tweeting about.


That’s with good reason, after the Mt. Gox website went blank late Monday, amid rumors of insolvency. There’s also talk of a theft of more than 700,000 bitcoins from the Tokyo-based bitcoin exchange, which halted withdrawals earlier this month. Some raised flags of suspicion after noticing that all tweets had disappeared from Mt. Gox’s Twitter account.


Now Coindesk and others are tweeting out something unusual in the source code for the site – a hidden note in the HTML saying the following:


On social media, speculation was rife that this line of code meant the company was indeed gearing up for a sale. Bitcoin-focused publication Coindesk reported that a document – “Crisis Strategy Draft” — has surfaced, with items saying the bitcoin exchange will close for a month as part of a re-branding plan, and that Mark Karpeles –who just resigned from the Bitcoin Foundation board — will leave his post as chief executive. MarketWatch has approached Mt. Gox to confirm the plan but hasn’t heard back.


Jeremy Bonney, product manager at Coindesk, said in an email that it didn’t make much sense for Mt. Gox to put that source code in again, but many decisions the company has made in the last year “in retrospect seem very irresponsible.”


“I can’t speculate as to who would buy Mt. Gox, but if someone does, they are certainly going to have a tough time turning around its fortunes. Mt. Gox has been dying a slow death for a long time now, but it’s getting closer and closer to the grave.”


The price of a bitcoin has been volatile on the Coindesk index, dropping to as low as $418.76 and currently down 7.2% at $505.87. Over on Fiatleak, which shows the world’s currencies moving into bitcoin in real time, it seems bitcoins are flowing like a river into China.


For investors at Mt. Gox, news of a buyer for the exchange would be better than a continued blank website.


Over at Reddit, there were plenty of battle scars and tales of woe at the ‘Gox horror story thread: How much did you lose?’ One user of the social platform, calling himself goxloser posted this several hours ago: “I am the biggest loser at 4700+BTC, offering up a screenshot of his account a few days ago. “I don’t know how dying feels, but I’m pretty sure that’s how I feel now,” goxloser said to responses estimating he lost over $2 million worth of bitcoin. (MarketWatch can’t verify the stories or identities of the Reddit users.)


Another Reddit user with the handle ebass, said that “144 BTC and 100 were entrusted to me by a friend because he wanted to get into cryptocurrency. I haven’t told him what happened just now though he has been updated all this while. I don’t know how to.”


User mtreme reportedly invested his life savings — $357,000 — in bitcoin via Mt. Gox, to try and build for his son’s education fund, he said, while another also spoke of losing college-tuition money. And lots of others talked about desperate and futile attempts to get their bitcoins out when they started realizing something might be wrong, garnering sympathy, but also plenty of “What were you thinking,” type comments from the Reddit crowd.


– Barbara Kollmeyer writes for MarketWatch. Follow her @bkollmeyer


Related stories from MarketWatch:


Mt. Gox bitcoin site disappears


Regulator to sound alarm on bitcoin
 

·
Registered
Joined
·
9,432 Posts

Quote:
Originally Posted by Postmoderndesign  /t/1519724/bitcoins-collapse-and-ma...ith-it-and-gpu-prices-will-drop#post_24405852


User mtreme reportedly invested his life savings — $357,000 — in bitcoin via Mt. Gox, to try and build for his son’s education fund, he said, while another also spoke of losing college-tuition money. And lots of others talked about desperate and futile attempts to get their bitcoins out when they started realizing something might be wrong, garnering sympathy, but also plenty of “What were you thinking,” type comments from the Reddit crowd.

That sums it up for me.
 

·
Registered
Joined
·
2,309 Posts
Discussion Starter · #3 ·
 http://blogs.marketwatch.com/thetell/2014/02/27/bitcoin-exchange-btc-e-a-mt-gox-alternative-is-an-internet-black-hole/



Bitcoin exchange BTC-e, a Mt. Gox alternative, is an Internet black hole

February 27, 2014, 8:38 AM

Share:

More

Email Print


The two largest bitcoin exchanges currently available to investors, Bitstamp and BTC-e, both stand to gain market share in the wake of Mt. Gox’s sudden meltdown. But some are questioning the safety in using the largely anonymous exchange BTC-e.


Not much is known about BTC-e besides its size and some scant information on its website. It’s the second-biggest bitcoin exchange by 30-day volume, according to bitcoincharts.com. There’s evidence that BTC-e is already benefiting from the Mt. Gox halt; a Tuesday update on BTC-e’s support website noted that the support system would be moved to a new platform “in order to cope with the increased number of client requests.”


But who runs it, and from where?


The terms of use on the exchange’s website say it is governed by the laws applicable in Cyprus but the website’s description on Google says the exchange is based in Bulgaria. The support system’s latest updates are presented in Russian and English. The founders of the BTC-e bitcoin exchange have taken pains to remain anonymous, giving only the names Aleksey and Alexander in a December interview with CoinDesk.


Users are unable to send a message to the site’s administrator. When one tries, as this reporter did, a window pops up with this response: “Please use tickets to contact us about any questions & problems.” There is no email address easily available on the website.


BTC-e did not respond to requests for comment sent through the support system and a Twitter account purporting to be from the exchange. Interestingly, the handle @btcecom, on Wednesday only followed one Twitter account — that of Charlie Shrem, the New York-based bitcoin entrepreneur arrested in late January on charges of alleged links to the bitcoin-only drug market Silk Road. The account now follows no one.


Zachary Collier, who works as an application developer in Pueblo, Colo., questioned BTC-e’s legitimacy in a post on Reddit that has nearly 300 comments.


Collier, 25, told MarketWatch he started using the exchange more than a year ago because it was one of the first to support litecoin, a derivative of bitcoin. “I took the risk so I could [convert] some of my cryptocurrencies into litecoin,” he said in a phone interview, adding that he doesn’t keep his funds on the exchange. Read: To secure your bitcoins, print them out


“If we don’t know their identities, we can’t really know anything else about the exchange,” he said in a phone interview. One of his biggest concerns is BTC-e’s unknown location. “Some people think it’s in Bulgaria. There’s a good chance it’s in Russia,” he said. A location in Russia could be problematic because authorities there have come out against bitcoin, he added.


Jeremy Liew, a partner at Lightspeed Venture Partners who has invested in the Chinese bitcoin exchange BTCChina, predicted a more dire outcome for those switching to BTC-e in a tweet. He testified at the virtual currency hearings in New York earlier this year.
 

·
Banned
Joined
·
29,681 Posts
Not sure what to say... really. Just not sure. I think I am in shock a little.


As for cheap GPU cards, I think GPU mining is being driven by the newer digital coins (not bitcoins) that you can still feasibly mine with a GPU card and don't need an ASIC machine.


No one mines bitcoins with a GPU anymore. You make like $20 year at this point, which does not even cover electricity.
 

·
Registered
Joined
·
2,555 Posts

Quote:
Originally Posted by Mfusick  /t/1519724/bitcoins-collapse-and-ma...ith-it-and-gpu-prices-will-drop#post_24416999


.


No one mines bitcoins with a GPU anymore. You make like $20 year at this point, which does not even cover electricity.

Not to mention the high rate of electric lung disease.


Sent from my generic not my computer device.
 

·
Registered
Joined
·
186 Posts
I've lost all interest in cryptos since there are now over 150 altcoins and any idiot can create another one... simply do not care about them at all. Too easy to lose one's balance, filled with scammers and profit mongers, shady exchanges to deal with, simply no interest. They are supposed to be currencies and not speculation vehicles.
 

·
Registered
Joined
·
3,121 Posts
Gotta feel for anyone who bought a $10K ASIC mining rig.
 
  • Like
Reactions: Vlad Theimpaler

·
Registered
Joined
·
722 Posts
You'll probably find some pretty good deals on used cards very soon

 

·
Registered
Joined
·
3,121 Posts

Quote:
Originally Posted by Dropkick Murphy  /t/1519724/bitcoins-collapse-and-ma...ith-it-and-gpu-prices-will-drop#post_24434625


You'll probably find some pretty good deals on used cards very soon


[email protected], Mersenne Prime, SETI, gene sequencing, they should all have a digital coin exchange. Whenever you discover a new prime, aliens, cure for cancer, etc. you get a coin.
 

·
Registered
Joined
·
823 Posts

Quote:
Originally Posted by StardogChampion  /t/1519724/bitcoins-collapse-and-ma...ith-it-and-gpu-prices-will-drop#post_24434552


Gotta feel for anyone who bought a $10K ASIC mining rig.

I'm reminded of an old saying: "All gamblers die broke."
 

·
Registered
Joined
·
460 Posts

Quote:
Originally Posted by StardogChampion  /t/1519724/bitcoins-collapse-and-ma...ith-it-and-gpu-prices-will-drop#post_24434552


Gotta feel for anyone who bought a $10K ASIC mining rig.

If you see a bandwagon, it's already too late to jump.
 

·
Registered
Joined
·
3,121 Posts

Quote:
Originally Posted by durack  /t/1519724/bitcoins-collapse-and-ma...ith-it-and-gpu-prices-will-drop#post_24440707


If you see a bandwagon, it's already too late to jump.

I think the bandwagon makers were the ones that made serious $$$.
 

·
Banned
Joined
·
29,681 Posts

Quote:
Originally Posted by Artslinger  /t/1519724/bitcoins-collapse-and-ma...t-and-gpu-prices-will-drop/0_60#post_24441518


"Bitcoin bank Flexcoin said on Tuesday it was closing down after it lost bitcoins worth about $600,000 to a hacker attack."

Lulz. Bit coin having troubles I see.
 

·
Registered
Joined
·
2,309 Posts
Discussion Starter · #20 ·
Bitcoins are created through a process called mining that pits computers against each other in a race to solve cryptographic problems???
http://www.marketwatch.com/story/virtual-currency-to-remain-but-is-bitcoin-the-future-2014-03-05?dist=beforebell

March 5, 2014, 12:25 a.m. EST

Virtual currency to remain, but is bitcoin the future?

Bitcoin is seven times more risky than gold



By Saumya Vaishampayan, MarketWatch


NEW YORK (MarketWatch) — Virtual currencies have gained traction in the five years since the first bitcoin was created , but it’s less clear if bitcoin itself will be the virtual currency of the future.


Getty Images


“The banking system has come to the realization that digital currency isn’t going away,” said Barry Silbert, chief executive of SecondMarket. His comments came during a panel discussion at the MarketWatch Investing Insights event “Bitcoin: Boom and Bust” late Tuesday in New York.


But there is a chance that bitcoin could be replaced by a better second mover, just like Friendster was ousted by Facebook Inc. FB +2.09% , said Todd Harrison, founder and chief executive of Minyanville Media.


The collapse of the bitcoin exchange Mt. Gox last week thrust the virtual currency back into the limelight. Tokyo-based Mt. Gox, once the main exchange for trading bitcoin, disclosed Friday it had lost about 750,000 of its customers’ bitcoins as it filed for bankruptcy in Japan.


The announcement came after it abruptly wiped its website clean of information and halted all trading earlier that week, raising questions about the security of investing in a virtual currency that isn’t regulated by governments.


That could change. SecondMarket, the platform known for letting investors trade shares of Facebook before it went public in 2012, is currently working on creating a U.S.-based bitcoin exchange with input from regulators. The company expanded into the bitcoin space last year when it launched a bitcoin investment vehicle for accredited investors.


Silbert said Tuesday that the SecondMarket board has approved a proposal to spin off its bitcoin business into a separate company, which will include the bitcoin exchange.


“We are officially moving forward with it,” he said.


Bitcoin is a decentralized virtual currency that has also been trumpeted as an alternative-payments system that’s faster, cheaper, and — until last month’s exchange problems — more secure.


Unlike the U.S. dollar DXY +0.06% or British pound GBPUSD +0.30% , the bitcoin network isn’t controlled by a central bank. Instead, bitcoins are created through a process called mining that pits computers against each other in a race to solve cryptographic problems. The winner, or group of winners, is awarded a block of bitcoins.


The original paper describing the bitcoin network was circulated on a cryptography mailing list in late 2008 under the pseudonym Satoshi Nakamoto, and the first block of bitcoin was mined in January 2009.


Mark Williams, who teaches finance at Boston University, said bitcoin’s qualities as virtual currency and payment system are intertwined.


“If you think about bitcoin the currency, it’s really a locomotive that sits on a track that is the payment system,” said Williams.

Click to Play

EBay CEO on facing activist investors


John Donahoe, chief executive of eBay, says he stays focused on purpose.


Bitcoin is seven times more risky than gold, he said, and its high volatility has been detracting from its potential as a payment system.


Bitcoin moved into the realm of water-cooler conversation last year as its price surged from about $13 in January 2013 to more than $1,000 in November.


Bitcoin-focused companies have attracted money from venture-capital firms, including Andreessen Horowitz, Accel Partners and Union Square Ventures, as institutional investors bet that the technology behind bitcoin could change the way people send money around the world. Fortress Investment Group disclosed last week that it bought $20 million of bitcoin in 2013.


But even as major investors make big bets that bitcoin can become a mainstream technology, it hasn’t been able to shake its early association with illegal activities.


Charlie Shrem, a New York entrepreneur once considered an ambassador for the bitcoin industry, was arrested in January for alleged connections to the illegal drug market Silk Road.


What’s the bottom line for investors? “Don’t risk what you can’t afford to lose,” said Minyanville’s Harrison.



Saumya Vaishampayan is a MarketWatch reporter based in New York. You can find her on Twitter @saumvaish.
 
1 - 20 of 60 Posts
Top