Monday, February 17, 2014

Mt Gox is the Cyprus of the Bitcoin World

Joe Weisenthal writes:
Essentially, Mt. Gox has become Cyprus. Remember, in early 2013, when the Cypriot financial system collapsed, the Eurozone imposed massive haircuts on Cypriot bank accounts (confiscating cash) and instituted capital controls, preventing people from withdrawing their cash and moving it to non-Cypriot banks. For awhile, there was talk about a normal Euro and a Cypriot Euro. And a Cypriot Euro was worth less, because you couldn't move it out of Cyprus easily, or if you did want to move money out, you probably had to pay huge fees to do so through illicit mean.

So that's the deal today with the two prices of Bitcoin. There's the normal Bitcoin price and the price of a Bitcoin that's frozen on a site with severe technical problems. If Mt. Gox gets everything fixed, prices should find parity. But the large gap in price reflects a lack of confidence that things will be sorted out soon.

Current Bitcoin price at Mt Gox: $274.86


  1. Yes, a lot of bitcoiners need to learn what most gold bugs have known for a long time: don't leave your coins on deposit with someone else. Eliminate counterparty risk and take possession of your coins. Even Gerald Celente had his gold futures contracts stolen from him. Bitcoins, like gold, don't do you any good if you don't have possession.

  2. No other globally traded asset has decreased in value more consistently than fiat money. (Hat-tip to 11Bills)

  3. aren't you glad you bought at $1200. bwahahahahaha. Shitcoins!

    BUY GOLD!!!!!!!!!!!!!!!!!!!!!!!