Re:Bitcoin Price Pressure
by LyndsySimon on Wednesday April 30, 2014 @06:56PM
(#7677044)
You're mostly correct, but there were lots of warning signs about MtGox, far before they folded - the repeated suspension of USD withdrawals chief among them.
Re:Bitcoin Price Pressure
by sillysaurus3 on Wednesday April 30, 2014 @07:46PM
(#7677257)
There's plenty of warning signs for Coinbase right now, but people dismiss those. The difference is that Coinbase hasn't failed yet. It's easy to try to dismiss Mt. Gox as a one-off, but something like a dozen exchanges have already collapsed due to insolvency. It's the norm, not the exception.
In April 2013, Mt Gox handled 70% of bitcoin trading [1] - they were a widely trusted, well known brand, operating in a stable legislative environment.
Coinbase today has what Mt Gox had a year ago.
Admittedly, coinbase also has some VC investors. If you believe, should they be hacked or robbed by an insider, that the VCs are going to throw good money after bad to compensate customers, you are much more optimistic than I am.
[1] http://www.wired.com/2013/11/mtgox/all/