Bitcoin withdrawals still on hold, prices plunge

Discussion in 'General Discussion' started by stg58, Feb 10, 2014.

  1. stg58

    stg58 Monkey+++ Founding Member

    I like the concept of BitCoin but have been a bit cautious of it. This makes me even more so.

    But now might be the time to buy low....
    Bitcoin prices plunged again Monday morning after Mt.Gox, the major exchange for the virtual currency, said technical problems require it to continue its ban on customer withdrawals.
    Mt.Gox said it has discovered a bug that causes problems when customers try to use their account to make a transfer or payment of bitcoins to a third party. It said the problem is not with Mt.Gox software but affects all transfers of bitcoins to third parties.

    The exchange said it was suspending withdrawals and third-party payments until the problem is fixed, although trading in bitcoins continues.

    A bug is allowing a third party receiving a bitcoin transfer to make it look as if the transfer did not go through, which can lead to improper multiple transfers, Mt.Gox said.

    Related: How Bitcoin works

    Bitcoin prices on Mt.Gox plunged from about $693 just early Monday to $510 at 6 a.m. ET, soon after the statement was posted, although prices rebounded somewhat following that plunge. Prices had been as high as $831 just after 7 p.m. Thursday before Mt.Gox's halt of withdrawals was first disclosed early Friday morning.

    Bitcoin prices plunge as problems persist - Feb. 10, 2014


    From the creation of Bitcoin in 2009, one of the most important and vaunted features of the Bitcoin program was its ability to prevent the same coins from being moved to two different places at the same time. In its announcement on Monday, Mt. Gox said that a bug in the Bitcoin software made it possible for someone to use the Bitcoin network to alter transaction details to make it seem like a Bitcoin transfer had not occurred when, in fact, it had.

    The company said: “We have discussed this solution with the Bitcoin core developers and will allow Bitcoin withdrawals again once it has been approved and standardized.”

    Other exchanges did not report similar problems, but none of the biggest companies immediately put out a response.

    Beyond Mt. Gox, Bitcoin users have been rattled by several setbacks in recent days. On Friday, the Russian government said Bitcoin transactions were illegal. They joined the Chinese government, which said in December that financial institutions in the country could not participate in Bitcoin transactions.

    Florida prosecutors, meanwhile, arrested people on Friday who had met to exchange Bitcoins for dollars, the first such arrests.

    American authorities have generally given a tentative blessing to the Bitcoin experiment. But they have warned consumers about the dangers and the problems that could still pop up.
    Last edited: Feb 10, 2014
  2. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

    yep, I love FUD. (fear, uncertainty and doubt) makes for a great buying opportunity if you believe in the stuff.
    if you don't believe in it, just more reason to stay far away.

    that being said, It appears that Mt.Gox is trying to blame the bitcoin code and protocol for their problems.
    They've pretty much pissed off the BitCoin community a number of times over the last 18 months. Price did tumble .. but it's actual up over the past 24 hrs.

    I love it when rumor/news can support both sides of an argument. It's a roller coaster run with all the fun, excitement, and possibility of vomit during the run. I'm just glad to sit very near the front seat. Come what may.
  3. stg58

    stg58 Monkey+++ Founding Member

    At this point I will stay with coins that have the word "Gold" or "Silver" on them.
    Motomom34 and VisuTrac like this.
  4. Snake_Doctor

    Snake_Doctor Call me Snake...

    I never understood the whole bitcoin thing
    stg58 and Motomom34 like this.
  5. Motomom34

    Motomom34 Monkey+++

    I agree, it just seemed to not real for me.
    stg58 likes this.
  6. stg58

    stg58 Monkey+++ Founding Member

    Too dicey for this cowboy..

    2/11/2014 @ 6:55AM
    No more has been said yet on how the problems will be fixed and if messaging standardization will be achieved. After Bitcoin’s price plummeted to $540 dollars yesterday, it has staged a partial recovery to $577 at the time of writing. But this is well short of the $691 before the fall yesterday and a long way from the more than $1,000 value commonly witnessed since November.

    Bitcoin Trading Technology In Question As Currency Dives After Glitch - Forbes
  7. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

    don't look at me, I bought more crypto.
    ditch witch and stg58 like this.
  8. Snake_Doctor

    Snake_Doctor Call me Snake...

    I agree, and while gold and silver are nice I prefer paper money, commodities, medical supplies, arms and ammo. These are things I can hold and count on.
    stg58 likes this.
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