Archive for February, 2014

Mt Gox, A Viable Exchange?

Lately, I have talked about That exchange now seems to have disappeared. Not reputable. Well I lost a little. I am using Coinbase, Vircurex, Btc-E, and a couple of more. Now Mt Gox. This morning it has disappeared from its offices. It apparently moved for self protection. The sell off that they have had because of some lost Bitcoin, has all but destroyed them. I see there is one document that says there assets are one third their debt. That is a tough road to hoe, and Mt Gox may not survive. Now we have to see why it happened and how the collective we can prevent it in the future. At least, I did not have a Wallet at Mt Gox.

Why we? We are Bitcoin. Not governments or regulating agencies. If we cause things to occur, the use of Bitcoin and other digital coins will survive. I look at some of the other digital coins. DGC, digital coin is small. But it is traded. Some other, smaller coins are very active. I wonder why. Then basically I understand. At micro pennies, you can not lose much, but you stand to gain alot, if it takes off. It has to be fun, like penny anie poker. How can we manage the market? Now that is a good question. Even the US Government can not influence the market. It can feed it by making money, but little else. Each week they try to encourage it, but only the little investors stir. The big money makers and Hedge Funds do not move. They wait for the big moves, up or down. That is when money is made.

But we can look at the other exchanges. Today, Bitstamp is at 503.2; Mt Gox at 137; BTC-E at 507 and Camp.BX at 650.01. The volume of exchange has moved to Bitstamp and BTC-E. Now 506 is not the 1200 of Bitcoin at its height, but it is well above it lows. It looks like the volume and the price are both healthy. I like Bitstamp and BTC-E. I have not used CAMP.BX. I like Virxurex for other digital coins and it does sell Bitcoin, but is more difficult to buy from the US, therefore I use Coinbase. Are any of these the best? As I like to say, only the Market knows.

These exchanges say they are well, but the market is not well. There are companies like Mt Gox that need fixing or new owners. Also, I hear that there are hackers that are using something called a pony. This rides with your browser and relays everything you do, passwords and access to the hacker. Thus, do not keep your wallets on your computer. Use high security wallets online that protect your assets. When you leave your computer remove your memory stick and make sure your passwords are not on your computer.

I can see the internet is in need of some aggressive security. I like to think of some of the syfi stories about security that operated online in a virtual mode and went after the hackers. When they found then them, they destroyed them in place. You could almost see the hacker being shot, though that was not possible, but the computers were destroyed. Yeah for our side. Now I am dreaming!

But this is where we need to go. I hope the Bitcoin Foundation Council, minus one, the Mt Gox representative resigned, will consider going in the policing direction and ask us for funding. They could even tax Bitcoin exchanges at some point, say BTC0.00000001 at that rate. If that provided enough revenue, great. If not raise it to 2. And then 3. It would not take long to build an online police force to get rid of bad hackers. We need some good hackers to advance the web, and to be policemen.

Also, I can see where each major exchange need to sit on the Bitcoin Foundation, along with some minor exchanges based on revenue and acceptance by US. We could vote. We all have access and could register our desires. We can now, but we can not control the Bitcoin itself. We can only influence.

I will not make this long. I see too many Bitcoin articles that are way to long. I am thinking about making future comments at VIMBRA. That way everyone can comment and make corrections and additions. Interesting website. It is new but interesting.

Comments (3) Questionable Exchange

Of the several exchanges that I have used, seems to be the only one that is really questionable in its business model and mode of operation. To call itself an exchange and then not provide the function of exchange, is beyond reason.

To take someones’ money and then not allow them access to me is out right theft. I am not sure whether the site has access to the coins in my wallet, but I know that I do not. I have not had access to over $2000 for over a month. This to me is not acceptable. I have lost both Digital Coin and Lite Coin. Basically when you do not have access the ability to protect the value of your investment, degrades by the day.

After extensive effort to get my coin, it has now reached the point that the site administrator does not even answer my email. What he will lose in gaining a bad name and disrespect from his fellow business users is more than he has gained by not maintaining at least some contact to show concern that I have been wronged by his site.

I used the site coinEX basically to purchase Digital Coin. I bought some Litecoin because it was at a price and it was easier to buy at coinEX rather than go to another site. BAD CHOICE! I am not denied my money and have had to resort to writing and warning others that this site is not worthy of use and not trustworthy with any ones’ money.

If you have comment or wish to add your displeasure with coinEX please add a comment. If you wish to add a positive note or to give me direction to regain my coin, please add a comment.

Comments (11)