[uncensored-r/Bitcoin] A classic from 2013 mtgox crash
The following post by linktype is being replicated because some comments within the post(but not the post itself) have been silently removed. The original post can be found(in censored form) at this link: np.reddit.com/ Bitcoin/comments/7vkz69 The original post's content was as follows:
Bitcoin has spectacularly 'died' several times 📉 - 94% June-November 2011 from $32 to $2 because of MtGox hack 📉 - 36% June 2012 from $7 to $4 Linod hack 📉 - 79% April 2013 from $266 to $54. MTGox stopped trading 📉 - 87% from $1166 to $170 November 2013 to January 2015 📉 - 49% Feb 2014 MTGox tanks 📉 - 40% September 2017 from $5000 to $2972 China ban 📉 - 55% January 2018 Bitcoin ban FUD. from $19000 to 8500 I've held through all the crashes. Who's laughing now? Not the panic sellers. Market is all about moving money from impatient to the patient. You see crash, I see opportunity. You - OMG Bitcoin is crashing, I gotta sell! Me - OMG Bitcoin is criminally undervalued, I gotta buy! N.B. Word to the wise for new investors. What I've learned over 7 years is that whenever it crashes spectacularly, the bounce is twice as impactful and record-setting. I can't predict the bottom but I can assure you that it WILL hit 19k and go further beyond, as hard as it may be for a lot of folks to believe right at this moment if you haven't been through it before. When Bitcoin was at ATH little over a month ago, people were saying, 'it's too pricey now, I can't buy'. Well, here's your chance at almost 60% discount! With growing main net adoption of LN, Bitcoin underlying value is greater than it was when it was valued 19k.
According to the Mtgox leaks from early 2014, our brand new 'Satoshi' Craig Wright bought 17.24 bitcoins at a rate of $1198 each.
As winlifeat posted here, Craig was user 'e62d5e53-0dbc-44be-9591-725cd55ca9dd' at the Mtgox exchange. With this identifier, it's possible to look up his trades in the 2014 leak. I posted the raw data in this pastebin, you can import it into spreadsheet software like Excel to play with it yourself. He started trading at 22/04/2013, this is just after the crash of the April 2013 bubble (or the 'Cyprus bubble'). He lost interest pretty quickly, because activity stopped 27/04, only to come back 25/11 around the peak of the last bitcoin bubble. His average price is actually $120 and he bought around 50 bitcoins, but his last buy was 17 bitcoins at around $1200. He ends up with a balance of just under 15 bitcoins when mtgox shuts down, so he probably lost another few bitcoins with trading. (The trade data in the leak stops at November 2013) Edit: You can also find his btc deposit/withdraw history in the leak http://pastebin.com/g3ME3Grc
October, 2011 was when I first heard about Bitcoin. A friend excitedly told me about it, that the price had crashed, that it could be 'mined', and that it could be purchased on exchanges. He didn't own any, but he found it interesting, and so did I. I was instantly interested in acquiring some coins. That the price had 'crashed' meant a buying opportunity, and I further saw it as evidence that the system was somehow free, and had a life of its own. I did not purchase any right away, regretfully, since the coins were about $3 each. I did do some initial research, calculating mining profitability, and looking into the process for buying coins on MtGox. I also read about the thefts and hacks. I found it intuitive these incidents were matters of endpoint-security, and not reflective of a systemic weakness. Yet I would have much to learn if I was to avoid becoming a victim. I continued to casually follow Bitcoin developments, and occasionally checked the price. Eight months later I came across a Timothy B. Lee article in Forbes that detailed the Bitcoin Richlist. It was my catalyst. It was time for a technical deep dive, time to understand what gave people the confidence to entrust millions of dollars of value to the system. Of everything I read that day, it wasn't the proof-of-work that seemed revolutionary, but simply the fact that a lost private key meant the coins would be irrecoverable. That signified Bitcoin put true and total control of money into the hands of users, and for that it was different and worthwhile. I decided to invest. All that was left was working out the mechanics of the transaction. And security. I was determined to not fall victim to a hack. An offline, paper wallet seemed like the easy choice. The price was in the $6 - $7 range. My first purchase went though MoneyGram and Coinapult, with MtGox as my receiving wallet. I put in $150, and got out $130 worth of coins. The price had surged in the few days since I decided to buy, to slightly under $10 per coin. I transferred the coins off of MtGox and onto my paper wallet, and it all felt very real! I wanted to buy more, and settled on CoinFloor to avoid the hefty fees I paid the first time. CoinFloor also allowed for instant fiat funding via a deposit at a bank teller window. Depositing $900 directly into a bank account was not without risk, but CoinFloor came through and the money was credited within 5 minutes. It all went flawlessly, and soon with my 100 coins spread out over a few different paper wallets, I could rest easy, without fear of a hack. Edit - I meant BitFloor, not CoinFloor I occasionally checked the price, tested out Satoshi Dice, and read a little more on the technical underpinnings, but other than that, I mostly forgot about my Bitcoin investment for the next 6 months. Then, in early 2013, I read about a few seed rounds in Bitcoin startups, and I saw pictures of a Bitcoin booth at the CES is Las Vegas. Somehow that booth, with the Bitcoin logo, made it all seem even more legitimate. The price had climbed into the $14 - $15 range, and I wanted more coin. CoinFloor had been hacked and was out of commission. This time I would use the Dwolla to MtGox method of funding. I found myself seriously regretting not having done Gox's verification the previous summer, as the price quickly climbed while I waited. When my verification finally cleared, the price had shot up to $19, and I transferred in several thousand dollars and bought another ~150 coins. Over the next few months I kept buying until the price crossed $100 per coin. In total, I had put in about $10,000 for 340 coins. I worked part-time, with an annual income of about $25,000, so that $10,000 felt substantial. The rise to $266 was exhilarating, as was the following surge to $1242. I mostly held, but sometimes tried to time the market with a small position (always 10% of holdings or less). I sold some coins the first time Bitcoin passed the $400 mark to recoup my initial investment, and I arbitraged when it was profitable. I lost a then-painful amount of fiat on MtGox, but not any coins. I held tight during the long bear market, with absolute confidence that the price would find a non-zero bottom, and it would only be up from there. The ecosystem was growing, the technology was maturing, and investment money was pouring in, and yet the price continued to decline. I would have loved to buy more, but doing so would have been truly irresponsible from a diversification perspective. I have largely stayed away alt-coins, but I did mine-and-dump those I found annoying, and mined and held the one that I found interesting - Ethereum. I reluctantly pushed some BTC into Ethereum early this year, which turned out to be a good move. In total, over the past 5 years, I have returned about 200x on my initial investment, in the current form of about 250 BTC, about 700 ETH and approximately $300k of other liquid assets. The result is almost identical to a pure buy-and-hold from the beginning, but I felt the need to hedge as valuations changed over time. I feel no pressure to sell more coins, though I probably would convert a few in the $20k-$40k range, prices which I have long seen as likely, if not inevitable. I am in my early 30's. Ask Me Anything! Though I might only have time to answer a few…
Just thought I'd share a little observation. In both the 2011 bubble and the bubble earlier this year, the difference between the last, small plateau before the bubble and the peak of the bubble was around 500%. Well, the last plateau before the price increase we've seen in the last few weeks was at $100. We are approaching a 500% increase (mt gox is already there). In other words, if we are overlaying the graphs of the two last bubbles and this one, it looks look like the crash would happen now. It's actually scary how similar the patterns are. Be EXTREMELY careful.
[uncensored-r/Bitcoin] Lesson - History of Bitcoin crashes
The following post by xcryptogurux is being replicated because some comments within the post(but not the post itself) have been silently removed. The original post can be found(in censored form) at this link: np.reddit.com/ Bitcoin/comments/7uqa54 The original post's content was as follows:
Bitcoin has spectacularly 'died' several times ?? - 94% June-November 2011 from $32 to $2 because of MtGox hack ?? - 36% June 2012 from $7 to $4 Linod hack ?? - 79% April 2013 from $266 to $54. MTGox stopped trading ?? - 87% from $1166 to $170 November 2013 to January 2015 ?? - 49% Feb 2014 MTGox tanks ?? - 40% September 2017 from $5000 to $2972 China ban ?? - 55% January 2018 Bitcoin ban FUD. from $19000 to 8500 I've held through all the crashes. Who's laughing now? Not the panic sellers. Market is all about moving money from impatient to the patient. You see crash, I see opportunity. You - OMG Bitcoin is crashing, I gotta sell! Me - OMG Bitcoin is criminally undervalued, I gotta buy! N.B. Word to the wise for new investors. What I've learned over 7 years is that whenever it crashes spectacularly, the bounce is twice as impactful and record-setting. I can't predict the bottom but I can assure you that it WILL hit 19k and go further beyond, as hard as it may be for a lot of folks to believe right at this moment if you haven't been through it before. When Bitcoin was at ATH little over a month ago, people were saying, 'it's too pricey now, I can't buy'. Well, here's your chance at almost 60% discount! With growing main net adoption of LN, Bitcoin underlying value is greater than it was when it was valued 19k.
Hi Bitcoiners! I’m back with the seventh monthly Bitcoin news recap. Last month's post got very little love, and I don't expect much more success with everyone focussing on August 1st, but here it is nonetheless. In my eyes definitely one of the most eventful months in Bitcoin's history, absolutely unreal how much happened:
SegWit activation imminent
Epic analysis of spam attacks & a 10M-user LN network
2013 price buble & Mt. Gox hack reveals
BTC-e went down
Bitcoin sign guy
Steepest rises and crashes USD-wise
To name a few. For those unfamiliar with the monthly recap, each day I pick out the most popularelevant/interesting stories in bitcoin and save them. At the end of the month I release them in one batch, to give you a quick (but not necessarily the best) overview of what happened in bitcoin over the past month. You can see recaps of the previous months on Bitcoinsnippets.com If you're on mobile and can't see the links below, check the web version. A recap of Bitcoin in July 2017
I'm a casual bitcoiner. Im lost when it comes to debates about Segwit, bigger blocks, hard forks, etc. I believe in bitcoin. But i wasn't around for $10 coins, the 2013 spike and ensuing crash, Mtgox, etc. I see a decentralized currency that i believe in. I use btc to play online poker, buy stuff off Purse, send low cost money transfers to my little sister....and HODLING. I want bitcoin to go to the moon. But the trip to the moon will be populated by 95% casual bitcoiners. We won't get to $10000+ btc with the 200000 people on bitcoin. So as a casual user, the talk of hard forks and my coins possibly losing much of their value troubles me. All it makes me want to do is sell as soon as i hear about a hard fork coming. What do you think that will do to the value of bitcoin Remember confidence is key to any economy. Casual bitcoiners wouldn't be confident with the uncertainty of a hard fork. Rant over. Carry on.
TL/DR: A young man had a secret. To keep it hidden, he kept digging until the hole was a billion dollars deep. This is a speculative tale of a great bitcoin theft from MtGox in 2011 and the efforts that this man undertook to fix it. The tale explains the bitcoin bear market of 2011, the explosive rally of 2013, delayed fiat withdrawals, malled transactions, and a bot named Willy. “By the time you realize that real life has begun, you are already three moves in.”—Author unknown It was June 19, 2011. Mark, a 26 year-old young man—a boy really—was ecstatic. He had recently purchased MtGox—a small, online exchange for trading virtual tokens—and business was booming. These virtual tokens were called bitcoins and Mark loved them. Bitcoins were an obscure curiosity: a peer-to-peer electronic cash system that allowed users to store and exchange credits with any other user in the world, nearly instantly, and without the assistance of a third-party or the permission of an authority. All that was needed was a 78-digit secret number—a key if you will. In order for his customers to withdraw their bitcoins over the internet, MtGox stored some of these keys on its online server. The remaining keys were stored on USB drives and backed up on paper to prevent theft should the server be compromised. But theft was hardly a concern. In October of 2010, bitcoins were trading for $0.10 and the half a million bitcoins held by MtGox was worth only $50,000. But still Mark took precautions, diligently moving bitcoins to offline storage and leaving only what was necessary for customer withdrawals online. He truly wanted both his business and bitcoin to succeed. By April, the bitcoin price had risen to $1 and by June it had exploded to $30. Between June 1 and June 15, an additional one million bitcoins were sent to MtGox and immediately sold, crashing the price back to $10. It was a hectic time, with hundreds of customers needing help, visits from the FBI related to the Silk Road black market, and stress related to the recent market crash. Young Mark was becoming a victim of his own success: there simply wasn’t enough time to get everything done. On this very day in June 2011, the keys to the recently-deposited 1,000,000 BTC were still sitting on his server. Later this day, a group of hackers gained access to MtGox servers and executed fake trades that the world could see, driving the nominal price of bitcoin near $0. Mark was frantic. He quickly regained control of the servers and learned the dark truth: the million bitcoins that had recently flooded in earlier that month were gone. Mark admitted publically to the hack, rewound the false trades, but kept the truth of the missing coins a secret. How could this 26-year old explain to his customers that he had lost their bitcoins? And if the world found out, would this kill the thing he loved so dearly? Would he go to jail? Or worse yet, would someone kill him? Mark decided that he would do what he thought was right: he would slowly earn back the lost bitcoin with MtGox trading fee profits and eventually make his customers whole again. He still had over 500,000 BTC left—he moved 424242.42424242 BTC between bitcoin addresses and convinced the community that MtGox was solvent. As long as withdrawals didn’t exceed deposits over a long period of time, no one would ever find out the truth. Or so he thought. Meanwhile, the bitcoin thieves slowly mixed their coins with other coins, obfuscating the chain of ownership, and then re-selling these coins on MtGox using sock-puppet accounts. Mark tried to stop them, but there was no way he could know for sure which accounts were fraudulent—he even accused innocent people of bitcoin laundering. The constant selling of these stolen bitcoins drove the price down to $2 in November 2011. Mark faithfully used all of the MtGox profits to purchase coins back during this decline. But he would never use customer funds—that was a line he swore not to cross. The selling of these stolen bitcoins continued at a diminished rate over 2012, and Mark continually purchased coins using the MtGox trading fees. The bitcoin economy was growing and new exchanges were opening up across the world. His bitcoin reserves weren’t building fast enough but the price of bitcoin kept rising (along with the dollar value of the missing bitcoins). He was worried that other exchanges would suck coins out of Gox and reveal his secret. He decided he needed to take decisive action: for the first time, he used customer funds to purchase real bitcoins. These large purchases by Mark further increased demand and ignited the great rally of spring 2013 when the bitcoin price shot from $20 to $266. Mark had reduced his liability in bitcoins, but in dollar terms the coins that were still missing were worth more than ever before. On May 15, 2013 the US Department of Homeland Security seized millions of dollars from the MtGox Dwolla bank account. MtGox dollar reserves were already depleted at this point, and with the recent seizure, Mark could no longer make good on customer withdrawals in US dollars. Under the guise of “banking problems,” MtGox slowed US dollar withdrawals to a trickle in the summer of 2013. Customers became increasingly worried and began to bid up the price of bitcoin on MtGox, as this was the only way to escape with their funds. MtGox had little fiat and very little bitcoins, but it learned one thing: as the price differential between Gox and BitStamp grew, the outwards flow of bitcoin slowed dramatically. And so Willy was born. Willy was a bot, discovered by Wall Observers from bitcointalk.org and named by Opet on Bonavest's trading show, who would consistently purchased bitcoins at regular intervals between November 2013 and February 2014. Evidence that Willy belonged to Mark was revealed when both web and API trading at Gox was disabled for a brief period of time, exposing Willy as the only one left buying. Willy served two purposes: he drove the price of bitcoin on the MtGox exchange high, thereby slowing and sometimes reversing the outward flow of real BTC, and he reduced the number of GoxBTC held by clients. Of course, this meant that Willy eventually became the owner of a huge number of GoxBTC (that were of course no longer backed by real BTC). By December, the situation at MtGox was grim. In a desperate attempt to attract more funds, Mark offered reduced trading fees under the guise of celebrating their 1,000,000th customer. This partially worked, but Mark knew it was too late. If MtGox collapsed, it must appear that he didn’t know about the theft until now—for it was better to appear incompetent than criminal. It was time to cover his tracks. He purposely mixed immature coins into bitcoin withdrawals to delay the outward flow of coins, and later began malling his own transactions. He added the Gox malleability weakness not as a bug, but as a feature, so that it would seem plausible that outsiders had recently stolen the coins without his awareness. No coins were actually lost to malleability. The MtGox coin supply dwindled to 2,000 BTC and on February 7, 2014. He had no choice but to disable bitcoin withdrawals. The end was near. The problem Mark faced was that his customers had $150,000,000 credited to their accounts, yet the MtGox bank account only contained $38,000,000. He could blame the missing bitcoins on transaction malleability, but how could he explain where the fiat money went? He shifted Willy into reverse and cranked the throttle. Willy relentlessly dumped bitcoins into the open bids. The price fell further and further, eventually dropping well below the BitStamp price. But still not enough people were buying! He needed his customers to buy the GoxBTC. Willy kept dumping coins until finally the price dropped below $100. MtGox even acquired new USD bank wires from customers looking to purchase the cheap coins. By this time, the majority of Gox customers had converted their dollars into bitcoins. On February 28, 2014, Mt Gox filed for bankruptcy protection in Tokyo, reporting 6.5 billion yen in liabilities, 3.8 billion yen in assets, and 750,000 of customer bitcoins missing. Willy had failed to completely close the fiat solvency gap and Mark finally admitted to having lost the coins. Now we watch the rest of the story unfold. A story of how an oversight during a hectic period, an untimely theft, and an attempt to cover it up, lead to the greatest loss in the history of bitcoin. Cross-posted from: https://bitcointalk.org/index.php?topic=497289.0
Erowid, a non-profit drug educational organization, gives a detailed look at how they used Bitcoin as a source of donations since March 2011
I recently sent Erowid a question about their Bitcoin donations (the quoted parts) and I got an extremely detailed reply about their history with Bitcoin donations. Thought I would share. But first, here is a link for donating with a wide range of crypto-currencies.
Thanks! We really appreciate it. Bitcoin is one of the most useful and interesting new payment systems since zero-fee paypal in 1999, which has ended up nothing at all like it started. It's now a very useful email-address-based gateway to the giant international VISA/MC conglomerate. It's a handy system, but that whole transaction skimming conspiracy is a little disturbing, costly, and monopolistic.
I was looking at your address and see that it is only a month old, yet you have been accepting Bitcoin since Mar 2011. In the spirit of openness I'm curious about why you changed addresses and
Many Bitcoin advocates and technologists state that a new address for every transaction is actually the right way to improve privacy and to firewall tracking of payments and transactions. I believe that viewpoint is kind of the opposite of openness, it is based on trying to keep people's transactions more private, despite the entire BTC blockchain database being fully public and exposed. I spent some time a couple years ago trying to get a server-based wallet set up that would generate a new address for each transaction and it wound up being a lot harder than I could get working reliably. The more unique addresses, the less erowid donors are tied together, thus a little more privacy. We will try again at some point. Currently, we keep a local bitcoin wallet and backups and rotate the BTC addresses every month or three, depending on a variety of factors.
and how much you received on your previous ones. Also I would like to know if you hold a fraction of Bitcoin or convert all to fiat directly.
At the moment, I can give you a rough outline of how we choose when to sell bitcoins. It different than people who are on the buying end. We have always conceived of BTC as 'micro donations', but some number of people over the years (let's say 30) have asked directly to pay for a membership with BTC instead of other methods. In order for that to make sense as an organization, we need to convert those bitcoins around the time of the donation so that the donation in bitcoin results in the amount near the dollar value that the donor was offering. So, for a t-shirt that might be a $45 donation. If/when that happens, we transfer the appropriate number of bitcoins out on or near that day to convert BTC into USD. Then we can enter that person's donation into our donation system and the accounting matches up: person gets a $45 membership, we get $45 into our bank account. Accounting is fun! :\ Further, because we are entirely a donation-based non-profit, we are always in the position of trying to have BTC donations be of non-zero USD value to the organization. That means selling them at some point. The question of when to sell them is obviously complicated. One can view BTC as a deflating currency or an investment or a security or maybe a commodity. We are generally conservative about them and have mostly sold the BTC we've received within a few months of their donation in order to generate USD for the organization. So, say we got 1 bitcoin 2 years ago when they were worth $30 each. If it wasn't tied directly to getting a sweatshirt or otherwise needed to wind up as a row in our banking records, I would hold onto to the coin and wait for a time when the value of BTC was going upwards and sell that bitcoin for more than it was worth when we received it. But I did not hold onto them for years, since that defeats the purpose of supporting the organization and it locks up the bitcoin trading market if everyone holds and never sells. However, the goal is always to wind up with money in the bank sooner rather than later, since we run a business. As far as previous addresses go, I believe that the reasoning behind the privacy concept is NOT to give out previous addresses, though obviously it's a tiny figleaf. We sold 1 BTC last week when the value hit $500 and another this week when the value hit $600 and will probably sell again if the price continues to rise. If I had a completely configurable trading system, I would likely set a sell order for 1BTC at $675 OR sell 0.5 BTC in 14 days if the price is >= $600. My reality is that I have to make the sales manually, because I don't have a reliable trading site that delivers to my US bank. The vast majority of total bitcoins we've sold were sold for under $30 a piece. When we opened our first bitcoin address to check out the system, The Faucet gave me 1 BTC just to help get the ball rolling. Obviously such things no longer exist and we're in a period where bitcoins are both volatile AND valuable. We had one donor give us some bitcoin back in early December and requested we wait to sell it until it hit $1200, but ALSO required that we open a separate account at a bitcoin trading company that took two weeks to complete as the company confirmed our banking information and identity, etc. By the time we'd gotten the new account set up, we were well into the price crash and so we are holding onto that bitcoin for some future price that is closer to what the person donated it at. On the other hand, we received several BTC last september when they were in the 100-200$ range and we sold all of those at between $800 and $1200 each in late november and early december as the price was running up. That was actually during the fall of MtGox who was our only trade location until October, 2013. I had initiated a sale of two bitcoins in early September and six weeks later, MtGox had not deposited the money in our account and had no estimate for when they would do it. Happily, they credited my account the USD, I bought BTC, and moved them back to an offline wallet. I'm not sure how to be both transparent AND private, but I can tell you the current address is typical of better months from the last year. We currently get a few hundred dollars a month in BTC, unless we're doing a big fundraising push, in which case we get double or triple that. With the price increase in the last 14 days, May was a good month. Happy to answer more questions and chat about how we manage bitcoin, but the main concepts to keep in mind are : trying to limit the exposure of blockchains for privacy reasons, trying to optimize for USD coming into our budget, generally being conservative so we will choose to sell rather than hold bitcoins, and having a rule of never selling all our bitcoins but selling off parts of what we receive over time to reduce risks and exposure. We currently use coinbase and bitpay, after having gone through 10 or so different BTC->USD systems. What we need is reliable and stable and most of the others have run afoul of the federal money cops in the US and have been shut down or had their banking connection shut down. I'm always interested in recommendations for other trading / sales sites, but we need one that can deposit into a US bank for it to be useful for erowid center. And we need one that is stable, represents a real business, and is unlikely to poof into a cloud of oily smoke. I see today we got a .01 and a .05 bitcoin donation to the current address, bringing our total for the last month up to .654 ish, which is great! With the price heading upwards (rather than hovering at $400), that's actually a useful amount of money. Thanks! Looking at the charts today, it seems like a lot of people decided to start selling as the price hit 650+ and so the price had a small crash today while I wasn't paying attention. Anyway, hope some of that is useful. Erowid Center's budget (income and expenditures) are all public information, but our list of donors is not and we do what we can to protect the privacy of the people who choose to support our controversial project. Thanks again for your contribution! Hurray that you didn't have to pay VISA 0.35 + 2% to do it. earth
LTC is fine and Jihan Wu will get what he deserves one day!
It's time to stop looking at the charts for a while and come back in a few weeks! It's important to see the positives: -BTC is currently over 1200$ and holding strong. (probably getting ready for another huge bullrun) -LTC hast close to 4 Million $ buy orders on Btc-e. (Yes it's 3.6 to be precise) -LTC/BTC has 600 BTC buy support compared to 100 a few weeks ago... (Keep in mind these values change but it's def. looking good. -Anyone who is comparing this to the crash from 8$ a Year ago to 4$ is tripping hard. LTC is a very different spot today and if you think it will crash back down to 4$ think again. -Half of the Bitcoin community wants to see Segwit on LTC (maybe more than half). If you just go to Bitcoin you will see that there are a lot of discussions regarding segwit and Litecoin. -Anyone who has been around since 2012-2013 knows something is going on. The signs are all there. So stop looking at the charts and just relax. Sigwit is going to happen sooner or later. Remember folks, the miners have been around since 2013 for the most part... They know its probably a good idea to scoop up as MANY cheap LTC as possible. (Remember back in the day when mtgox got ddodsed so that the BTC price would fall? Well look where we are now...Jihan can't stop Segwit on LTC, all he can do is delay it and scoop up more coins) -Relax and enjoy the rollercoaster. Shit is probably going to go nuts. To the m00n :)
According to the Mtgox leaks from early 2014, our brand new 'Satoshi' Craig Wright bought 17.24 bitcoins at a rate of $1198 each.
*Copied from apoefjmqdsfls on the other sub - I haven't done any verification or anything. "As winlifeat posted here, Craig was user 'e62d5e53-0dbc-44be-9591-725cd55ca9dd' at the Mtgox exchange. With this identifier, it's possible to look up his trades in the 2014 leak. I posted the raw data in this pastebin, you can import it into spreadsheet software like Excel to play with it yourself. He started trading at 22/04/2013, this is just after the crash of the April 2013 bubble (or the 'Cyprus bubble'). He lost interest pretty quickly, because activity stopped 27/04, only to come back 25/11 around the peak of the last bitcoin bubble. His average price is actually $120 and he bought around 50 bitcoins, but his last buy was 17 bitcoins at around $1200. He ends up with a balance of just under 15 bitcoins when mtgox shuts down, so he probably lost another few bitcoins with trading. (The trade data in the leak stops at November 2013)."
I have been trying to get a feel for the state of mtgox transactions other than the fact that they are extremely delayed. It appears that some people are being offered so-called "manual" withdrawals for a whopping 5% fee that are coming through within weeks. I made significant withdrawals from Mt Gox through Dwolla before/during the April run-up and crash. I have first hand experience of one unprocessed withdrawal from early November. Have you iniated and received a mtgox withdrawal? Have you initiated and not received a withdrawal? How long has it been? What country are you in? What was the amount? I have also seen people claiming small SEPA withdrawals are coming through quickly while larger ones are sitting dormant. Most of this conversation is happening on the bitcointalk forums and is littered with complaints and way too noisy to parse. I am humbling requesting that if you have first hand knowledge of receiving or not receiving a mtgox withdrawal you post it here. I will keep this thread updated.
10,000 USD initiated Nov 4th -- NOT RECEIVED
5,000 USD(?) initated mid september -- NOT RECEIVED
1,000 USD (?) intiated late october -- NOT RECEIVED
6,000 EUR (?) -- intiated late october -- RECEIVED
Backstory: Recently, one of the largest Bitcoin exchanges said they weren't letting people withdraw Bitcoins due to technical issues (a process called "transaction malleability," which I can't really explain but has been known for awhile). This caused much consternation and a precipitous drop in the value of BTCs. This exchange also released a statement blaming Greg Maxwell, one of the original Bitcoin developers for the "technical issues" they were having. This has caused much drama. Keep calm, transaction malleability is not double spending. One of the big "selling points" of Bitcoin is that you can't double spend. As the name suggests, double spending is when you spend the same money twice. It's bad for business and good for thieves.
So Gox decided to take the Bitcoin ship down with them blaming their shortcomings on well known and documented protocol limitations. Shame!
so gox can buy cheat coins to make up for the loss.
That's right, folks, this exchange is crippling their business and reputation...so they can sink the cost of Bitcoins so they can buy them more on the cheap.
Mt Gox's incompetence once again puts BTC on sale? I'm not complaining.
Yep, my buttcoins just dropped in value 20%, but IDGAF because I'm gonna buy more.
You make it sound a lot less apocalyptic than the MT Gox press release did. To the top with you!
They just purposefully spread FUD throughout the bitcoin world for the sole purpose of diverting attention while they fix their shit. This transaction malleability thing has been known for a long time and has plenty of easy ways to work around it, like just look and see if there's a double spend attempt on outputs before auto-crediting your internal books. The fact that Gox's shitty coding didn't do that is entirely their fault, and instead of owning up to it, they're trying to cause an earthquake of FUD to divert attention and buy themselves time. That's not just sneaky, that's truly evil. Fuck them. Fuck them so much. /rant
FUCK THEM THIS PR MOVE IS LITERALLY EVIL. Now, I tend to save concepts of "good" and "evil" for actions that have a considerable moral weight, like when some piece of shit steals my parking spot, but this takes the cake. I speculated invested in a volatile commodity and my speculation investment has tanked, so I'm totes raging about it on Reddit.
Tin foil hat time. What if a bunch of BTC got stolen and MtGox knows this. So they make FUD that blames bitcoin protocol knowing it will crash the price. They then take USD and buy up cheap bitcoin to cover the BTC that got stolen. What if this new USD will actually drive the price to new HIGHS!
If your going to claim to be the representative entity for Bitcoin then act like it. Otherwise you are just as big of a joke as that incompitent twit Mr Krabapple bouncing around on his blue ball. I mean, Jesus H. tap dancing on a crispy truiscuit Christ, do something, anything, or gtfo. *Edit: Help us Obi-Wan Antonopoulos, you're our only hope.
He's literally tanking Bitcoin! Let's take a rash action in response to a rash action!
Karppoopels is on the BTC foundation board? fuuuuuuck thats bad.
Anyone else from The Bitcoin Foundation want to shit on Bitcoin some with more negative PR?. Drugs, money laundering, "bugs"…c'mon guys…gun running could be next? or something worse?????. I'm sure you've got plenty more from where Shrem and Krapeles came from.
Perfectly timed manipulation on the part of MTGox, this news comes as the 3 day MACD happens, (exponential average crosses the average bitcoin price), it hadn't crossed since early 2013, so big movement was to be expected. You can see it on the 3day chart on bitcoinwisdom, the blue line and brown line crossing, this is a BIG sign for automated trading bots to make a move, in this case the exponential average (indicating the latest movement trend) went below the average, this means the trend is downwards. So MTgox preps up their sells, sets a weekend climate of "some big news is about to come out on monday, everyone keep an eye on your coins" Then DROPS the bad news, and BOOM goes the dynamite. we have an epic crash. Meanwhile MTgox sets up its orders on BTC-E around 200.
Most people trust MtGox. It's the oldest exchange, was the most mentioned in the media. Their press release is pure bullshit but it's a subject that's way too technical anyway for most people to grasp. We need other big players to step up and reassure people, or this could be the death of Bitcoin.
And what will happen now?
Go on, sell your bitcoin, and bang your head into the wall when the price goes back up. In the mean time, I'm enjoying the cheap coins. Hmmm. If one were a Gox insider, today would've been a good day to buy bitcoins. Either for a personal account or for the company's, in order to cover past fuckups. Are you concerned about the price of your holdings? I appreciate that we just got cheap coins.
Plus the general hatejerk:
How I look forward to the day bitcoin won't be goxed anymore. Even those outside of gox managed to get goxxed today. Gox has done the greatest service & disservice to Bitcoin. Sounds like Mark is trying to raise more fear. He needs to step down from the Bitcoin Foundation. I guess most of the other players fear legal problems if they say anything bad about Gox...
This press release from Gox was incredibly shady and deceitful. The majority of Bitcoin market crashes are because of them. We need to step up. I'm willing to step up. Get ahold of me on here! I'm willing to invest $50,000 in a LEGIT U.S. Bitcoin exchange for 5% of the business. We can't stand for this, people. We can't let lies like this affect the Bitcoin community this much
I first learned of Bitcoin in 2010, installed the client and got my first bitcoin from The Bitcoin Faucet. Thank you Gavin, I assume it was your property. I fell down the rabbit hole after reading Satoshi's paper (read it about 10 times so far. It gets better each time). I enabled bitcoind's mining feature on my home CPU (and possibly my work machine) and managed to solo mine a block. At the time, they were worth about $0.50 ea. A few months later, and zero blocks found, I compiled some code that allowed me to mine using my nVidia GPU. Still no blocks. Welcome slush pool! Bitcoins were flowing again (about 1/week). At this point, I figured I could make some money at this (price ~$1.00), so I spent $170 on an ATI GPU (about 10 times faster than the nVidia). Difficulty was increasing, people were building huge GPU rigs - I wasn't one of them. I bought a few coins through MtGox and a few more with paypal. But for the most part, I was happy getting about 1BTC/week on my ATI card. I wasn't ready to spend my "real" money just yet. I "invested" some assets on GLBSE and put it into a mining company called BITBOND. Was feeling pretty good until GLBSE was shut down and lost 50% of what I invested. I guess Bitcoin Savings and Trust (BST) was a bad idea. But, hey we're just playing around with digital tokens. No worries, I could afford to lose it - maybe $200 worth at the time. Live and learn. Bitcoin velocity started to increase with Eric's Satoshi Dice and Charlie's BitInstant. Up to $28... Have to buy more. Crash! Back to $2.00 and bailed. Lost another $200.00. In 2012, I made some paper wallets and gifted all my family members some BTC for x-mas. They were worth about $13/BTC. I still keep an eye on the accounts with watch only addresses on Blockchain.info. Paper wallets were created with Diceware and Amir's sx/libbitcoin, pen and paper. GPU mining was puttering out, so I spent $300 on a BFL 5GHz ASIC with paypal. I received mine in July of 2013, mined 2 BTC over two weeks, then sold it for $350 on ebay. The mined coins were worth about $300, so I doubled my money. The difficulty increases went lunar, and that BFL miner never mined another full bitcoin. Sorry e-bay buyer. My mining days were over and Coinbase came online. Since then, I've been lazily buying $50/week using Coinbase's recurring buy feature. All the way up to $1200 and all the way back down to $170. I've been here before. Each time though, I have more coins than I had before - and that's all that matters to me. Bitcoin's not made me rich. I'm not driving a Ferrari with BITCOIN plates... yet. I'm only in as much as I can afford to lose. It's been a fun ride. To all the people and companies mentioned, and to all of you building the future, Thank You.
My bitcoin value has surpassed my decade long stock account
Throwaway account because I'm revealing more than I want tied to my primary account. I'll put the TL;DR at the top. TL;DR: Apparently, I'm well off and 2 years of bitcoins are worth more than 10 years of stock market investment. I'm nearly 50 years old. A few years out of college and I just barely broke $20k salary. That was worth more than $20k today, but was still a lousy wage with college loan debt. I briefly (1.5 years) had a dotcom job at the turn of the millineum making more than I do now, but I had never had money like that before and boosted the economy instead of putting any aside. I did get some nice toys, though. Add on another 1.5 years of unemployment, living off my wife's meager salary and a few odd under-the-table jobs, and I finally landed a decent paying job again. Nothing like the dotcom days, but close. However, I'd learned we could live on much less and I wanted a cushion. I dumped tons into my 401k, my savings account and opened a Scottrade account. A little money goes each month to savings and Scottrade. Roughly ten years later, my 401k is about 3 times my annual income. The Scottrade account is about 30% of it. Two years ago, I heard about bitcoin on Slashdot. It sounded interesting. I started mining on my son's gaming machine, which meant it was only mining when my son wasn't playing games and if he remembered to start the miner when he was done. I mined solo for a few days, and quickly joined a mining pool. I was getting a bitcoin every three or four days initially. That didn't last long. I opened a MtGox account, added some cash and purchased btc almost at the height of the 2011 spike. I felt like an idiot. I bought some Casascius coins. I left my MtGox account alone. This was also around the time the 99% protests were going on. I felt very sympathetic. I remember in reading about the protests, I stumbled across a site that showed what percentage people were based on annual income. With mine and my wife's income, I was above the 90th percentile and below the 95th. I remember the horror and disbelief I felt. Througout it all, I continued mining. I got lucky during the early 2013 spike and sold some of the MtGox stuff I'd had sitting there. I also got a high end SLR camera at bitcoinstore.com almost at the peak. I was feeling pretty good. I bought a ButterflyLabs Jalapeno with bitcoins just before that first 2013 spike. I also stopped even trying to mine with a graphics card soon after that because it made no sense. I did eventually get delivery of the Jalapeno. It's earned almost .68 bitcoins. Don't ask what it cost in bitcoins, because I don't remember and I don't want to know. After realizing my MtGox profits couldn't be pulled out in dollars in any reasonable timeframe, I converted them to bitcoins and pulled them out. I got more bitcoins than I sold them for, but not by much. So, now I own bitcoins in the high 2 digits, about a third of them are still in physical Casascius coins. I only have an account on MtGox, so I have no real way of converting any of them to cash. I still have $100 sitting in the MtGox account, which I should have converted into bitcoins and pulled out long ago, but I'm frustrated by the premium bitcoins require in USD on MtGox. For nearly ten years, I've been putting money in my Scottrade account. I saw the collapse in 2008 and mostly held. I bought bank stocks at that time and made a killing. That killing was offset by the REITs I'd invested in before the crash. In ten years of regular transfers to Scottrade and investment that has gotten better as I've gotten older and more cynical, I've accumulate about 30% of my annual income. In the last few days, even with the purchase of a cool SLR and the cut involved in Casascius coin purchases, my double-digit bitcoin ownership has now surpassed my Scottrade account in value. I don't have an easy way of converting that bitcoin to USD, but I'm also not concerned about that because I think that easy methods will exist soon. I fully expect that my bitcoins will be worth less in the near future. However, I believe in the long term, they'll be worth more and that I'll have a number of easier possibilities for converting them to USD if I want to. I also believe the analogies to the early WWW are flawed. I think analogies to the IP protocol are more apt and that we've only begun to imagine the possibilities. I'm in it for the long haul. They'll either be worth nothing or much more than now. And, if I add up my electricity costs and the small investment I made during the spike in 2011, I'm still ahead of the game because I have an SLR camera that my wife would never have let me buy with cash. I'm already ahead of the game and I think the game hasn't even started. EDIT: Grammar
I'm donating 5057 BTC to charitable causes! Introducing The Pineapple Fund (20020 points, 2927 comments)
Farewell from the Pineapple Fund (10944 points, 610 comments)
🍍 $4mil will fund MDMA trials for PTSD; marked 'Breakthrough Therapy' by FDA. Pineapple Fund is matching MAPS donations 1:1. Reddit, let's make history by crowdfunding an incredible treatment for PTSD, in bitcoin! (10650 points, 558 comments)
Day 2: I will repost this guide daily until available solutions like Segwit & order batching are adopted, the mempool is empty once again, and transaction fees are low. You can help. Take action today (5145 points, 766 comments)
Day 9: I will post this guide regularly until available solutions like SegWit, order batching, and Lightning payment channels are mass adopted, the mempool is empty once again, and tx fees are low. Have you done your part? (2070 points, 190 comments)
Day 5: I will post this guide regularly until available solutions like SegWit & order batching are mass adopted, the mempool is empty once again, and transaction fees are low. User demand from this community can help lead to some big changes. Have you joined the /Bitcoin SegWit effort? (2017 points, 268 comments)
Day 7: I will post this guide regularly until available solutions like SegWit & order batching are mass adopted, the mempool is empty once again, and tx fees are low. Do you want low tx fees, because this is how you get low tx fees (1959 points, 166 comments)
Day 3: I will repost this guide daily until available solutions like SegWit & order batching are mass adopted, the mempool is empty once again, and transaction fees are low. ARE YOU PART OF THE SOLUTION? News: Unconfirmed TX's @ 274K, more exchanges adding SegWit, Core prioritizes SegWit GUI (1758 points, 220 comments)
Day 8: I will post this guide regularly until available solutions like SegWit, order batching, and Lightning payment channels are mass adopted, the mempool is empty once again, and tx fees are low. BTC Core SegWit GUI coming May 1, Coinbase incompetence exposed, more exchanges deploy SegWit (1454 points, 177 comments)
Day 6: I will post this guide regularly until available solutions like SegWit & order batching are mass adopted, the mempool is empty once again, and tx fees are low. Refer a friend to SegWit today. There's no $10 referral offer, but you'll both get lower fees and help strengthen the BTC protocol (1193 points, 99 comments)
So I have this chart on which I've been tracking all major news that seemed to have any effect (or surprisingly small effect) on the Bitcoin price. I tried to stay away from any kind of technical analysis and focus on the news alone, with the exception of upward channel first identified by AF Bitcoins since I like how it's been spot-on for almost four months. Anyway, here's the chart. Use it, abuse it, copy it and make it yours if you will. Is there any event I missed that moved the price? And looking at 2013 and further back, what's your takeaway, how much does the Bitcoin rise and fall by the news? EDIT: Some highlights:
Blockchain fork - first and only blockchain fork due to software bug, fixed in a few hours, caused 25% crash and immediate rebound with no long-term effect
Suspension of MtGox withdrawals - interesting, CoinLab lawsuit, Department of Homeland Security seizure etc. didn't have any effect on the price until the withdrawals were suspended, and as soon as withdrawals were resumed, we saw a first real uptrend after April 2013 crash
The following content is not mine. I disagree with some of it, but it might be worth discussing. ——— What happens when the market crashes and still no launch? TetheMtgox were both used to pump the markets, so 2017 should never of happened... The Tezos ICO would never of happened if not for the wide spread market manipulation. I think we all saw the news about how Tether was used to drive up the price of bitcoin in a fraudulent way. How many knew that Mtgox Also Did the same in 2013? https://www.extremetech.com/internet/262220-researchers-claim-one-person-drove-bitcoin-price-150-1000 https://www.theverge.com/2018/6/13/17461392/bitcoin-tether-bitfinex-university-texas-report-fraud-price-manipulation I was very suprised when the price went so high in 2017 as there was no reason for the price hike, it came out of no where. So it's now very clear that it was artificially pumped in order for the bitcoin holders to dump, which they did to the tune of $30 billion over the last year. https://news.bitcoin.com/flash-transfer-bitcoin-hodlers-dumped-30-billion-since-decembe Make no mistake, that there will be a harsh backlash from governments, regulators and the courts! The questions for the tezos team is are you going to have to pay back $250 million? What will you do if the market completely crashes before launch and no one collects their xtz? It's stated that Tether, pumped the price by nearly 50-80%. What will you do if they start to sue for at the least, the 250 million? I don't think you are insured! Launch ASAP, let those who want to cash out do so, let those who don't want to do the KYC get their bitcoins or ether back ASAP, or i can promise you that the team will be tied down with lawsuits for the next 5 years and I doubt that you will be able to afford the millions in lawyers fees! The backlash is coming, are you ready?
I love Bitcoin, and most other coins and tokens because of the value they bring to the world not just my bank balance, first of all i knew about Bitcoin to great detail back in 2013 when a certain friend/work college talked about it, I was hooked from that moment on for about a year and half and eventually i took the plunge and bought 2 BTC, my first mistake was keeping them on an exchangE (MTgox) luckily i transfered .2 out to an offline wallet as a test so the loss wasnt too much. and since then i have traded with alt coins and made a tidy profit so im content for the time being. anyway i digress, what if bitcoin was fully decentralised but has been now centralised in a way that it is infact controlled, and i dont mean by whales i mean by governments, fluctuating the price to offset the debt of the government, think about it, how easy would it be for them with the unlimited supply of money they can print, just because they tell us what they have printed doesnt mean they arnt themselves 'cooking the books' . what if they are just waiting for the right moment to crash the market....build it up to the extent wjere a sudden crash will help the economy, because no longer can people just quit their jobs beacuse of crypro but now they are forced to take loans, take credit maybe they didnt need with crypto, maybe its the whisky talking and the fact that USDT is printing its own money without USD backup but, its all plausable. fingers crossed its the whiskey and we can in actual fact look forward to a decentralised, bubble free future with a crypro coin/token
The greatest crash of all time is no other than MtGox’s fall. After serving the Bitcoin community for multiple years, acquiring trust and support from traders, the exchange started halting ... The trading lag problem that MtGox faced on the first day of the crash was not new; in fact, it had been present during nearly every minor flash crash on the way up to $260 since the price first broke through its 2011 all-time high of $32, with trading engine lag frequently reaching twenty to forty minutes at its peaks. Despite this advance warning, and despite the massive amount of resources ... There are other exchanges, but the bulk of Bitcoin trading happens there. MtGox claims to have been hit over the last couple weeks’ mania by the twin ills of denial-of-service attacks and sudden, excessive popularity, both of which amount to the same thing: MtGox’s systems falling over. The operation (which is based in Japan) has also shut down its own service at least once in an attempt ... Bitcoin is a distributed, worldwide, decentralized digital money. Bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. You might be interested in Bitcoin if you like cryptography, distributed peer-to-peer systems, or economics. A large percentage of Bitcoin enthusiasts are libertarians, though people of all ... A report– titled, The Willy Report— that was published online on May 25, 2014 is raising heavy suspicions of fraud on the already highly publicized crash of the Mt. Gox Bitcoin exchange in late 2013. This report analyzes the data from the Mt. Gox records that were made public after its crash and at the start of its dramatic legal battle.
Try TRADE HILL instead: http://www.tradehill.com/?r=TH-R1323 Price crashes from $17.5 to $0.01. That i not a typo. ONE CENT. Here is the official statement f... Clip taken from Digital Asset News Channel - ️ https://youtu.be/fdrWwnNpQOo GREAT NEWS! Mt. GOX To DUMP 150,000 BITCOIN. Market CRASH or BIG OPPORTUNITY? ... Break happens at about 3 seconds in, note the flash crash dropping to $540 support floor around :10 and quickly rebounding within 5 hours. Bitcoin crash on mtgox exchange ( timelapse ) April 10 2013(music by Klute - Buy More Now!) - Duration: 6:11. Crypto Coinz 17,478 views This is a short recording of what happened 9 hours before the big manipulated flash-selloff later on.