Don't forget that people have funds/coins essentially trapped on Gox.

I don't know why we're tending to agree so much as of late but yeah I was just about to post that. The exchanges must use cold storage for the vast majority of their bitcoins so creating signatures for each individual user with a specific address of where those are would be a nightmare. A better approach is the obvious one: regulatory licensing with transparent reporting. Outside of that you just have another full tilt, borrowing and/or repaying at their own discretion based on customer deposits. I'm not opposed to that, though I'm sure many here will be, as it can provide an alternative opportunity for exchanges to earn money and provide better software for their traders. Additionally it allows them to use the additional revenue streams for stronger marketing efforts and potentially open the market up more effectively to the mainstream. It's just that in order to do this honestly, it forces exchanges into becoming more of a banking securities firm.

<------- putting money where his mouth is. depositing on gox.


will report back

Creating individual accounts even with cold storage isn't that bad if you use something like hierarchical keys. If you aren't familiar with it, the idea is you can take a master public key, then take a derivation of it to get a near infinite number of other public keys such that the master private key can derive the private keys of those others. And it's done such a way that if I give you a derived public key, you can figure out it's private key.

So it's not really that hard to set that up for each customer, or even have multiple addresses for each customer that has a single master or so forth. The difficulty lies in maintaining balances in those accounts combined with cold storage. You could do this where there was settlement at the end of each day or something. So you have whatever trading goes on during the day, then create a massive transaction that moves everything around internally between each customer's addresses and everything is settled. Then have some offline signing computer sign it, then bring it back and broadcast it. It's just a huge pain for little benefit.

I think what we'll eventually see win out is a Voting Pool and multisig. http://bitcoinism.blogspot.com/2013/...plague-of.html

In this scenario, Gox will issue a pair of currencies "GoxUSD" and "GoxBTC". When you deposit, Gox issues you whatever you deposited. Besides issuing, Gox's internal servers cannot change your balances without your permission. You can transfer your balance to someone else, trade between currencies, etc.. with others. Then when you want to cash out, a supermajority of servers will sign the actual Bitcoin transactions to give you what you are rightfully owed, and your GoxBTC are destroyed on the server side.

The beauty of this is the Bitcoin supply is easily audited, the currency side could be audited fairly easily through traditional auditing, and you have a very low chance of being hacked because you have many servers controlled by multiple groups controlling the signing, so you can't just hack a single server.

It's really quite beautiful.

I'm not sure how much I'd buy gox coins for. Maybe $25

Did you receive that email from VOS today housenuts?

Have you guys heard about robinhood btw? It's a google backed venture to provide commission free trading to everyone. It's quite an interesting concept and something I think would beneficial to the US bitcoin exchange market once it begins to open up more.

https://www.robinhood.io/?ref=MwhTv8

Come on man, you should know the entire stockmarket is going to the blockchain with colored coins. Then we'll have some commission free trading, no brokers needed!

Even bitcoin exchanges charge commission!

Decentralized exchanges man, it will be the future.

(somewhat serious)

Still debating on doing Hackathon or full conference for Texas Bitcoin Conference. Would love to meet anyone there. I am leaning heavily on Hackathon. Gotta see if an old man like me can pull an all nighter.

Am I a fool for buying bitcoin at $620 a pop? Coinbase

if you are serious, you got some giant balls. if everything works out, you'll make a killing though. it is possible that gox already sold a bunch of btc on their own site, then bought back on the other exchanges. this could explain the massive flip-flop of their btc price. now nobody is depositing any money, so their prices aren't adjusting yet. it seems like a good way to entice people to deposit funds, or cancel their usd withdrawals( ****, you been waiting 2 moths anyways, might as well get some "cheap" btc if I can't get my cash, right?). plus, they could have made enough money to cover their losses. I can't think of any other good reason the prices could have gone from massively inflated to massively deflated so quickly.

Make an effort to write properly, nobody wants to read a wall (even if its a small one).

I dont think so if you believe in bitcoin long term (or medium term). Looks like a good buyin-opportunity to me and going forward there will only be fewer and fewer of thes opportunities.

I think its a very good play. Buying mtgoxBTC for BTC myself. Market is highy irational right now, dont believe for a second there is a 45% chance mtgox goes bankrupt/insolvent whatever where they dont pay out.

Waiting for mid 5 figure international wire for 8weeks+ from Gox. Multiple emails unanswered or the reply was 10 days later. Asked to cancel the withdraw and one day reply. !@#$ Gox

ya. doesn't really change anything for me. excited for the upcoming coin to coin trading and the addition of more coins.

I did

I wouldn't deposit fiat at MtGox! This site seems to be selling MtGox BTC at 80% the MtGox rate:
https://www.bitcoinbuilder.com/

(Can't vouch for it's safety but seems to be popular on Reddit).

from what I can tell, it is trading only in terms of btc, so, you would actually profit by buying btc there in fiat, and trading for "real btc".

as of right now coinbase is 653, mt gox is 392. so you can buy btc at 60% true market value, and sell at 80%. there isn't a ton of liquidity, but if you have a small amount of fiat on gox, it seems like you can get it off almost immediately, while making a profit.

the only reason why i am doing this is because i already have a verfied acct on gox.

It took them 2 weeks to verify earlier last year, certainly before all original btc hysteria recently. I was just a bitcoin fish back then and only felt that I could trust the biggest site.


Otherwise, I wouldnt waste time trying to put money onto the site.


I am not looking to buy at 60 and sell at 80. I would only buy to hold and invest into a few places

if you believe that gox gives you high enough of a % to get your btc out at some point, then that's obviously the better way to go. my response above was just saying that right now, no matter how you look at it, gox$$$ is worth more than real$$$. its kind of odd to think of it that way, but right now its true. I think people are still pricing gox$$$ the way they were last week. I know that I had it backwards til I saw the trading going on for goxbtc, and actually compared prices across exchanges.

If anyone have fiat stuck in Gox, PM me and I will help you get it out at 100%.

Sounds sketchy

I have already helped a couple of people on Bitcointalk doing this and I will provide my name there to anyone who is interested. In addition we will be using Bitcoins to move the money so no risk of charge back. Also done successful trades involving Bitcoins here on twoplustwo with sethseth and shoemaker.

oh well in that case doesn't sound sketch at all