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Sunny Day · 02-08-2014, 10:42 PM

There's the optimistic view

http://www.newscientist.com/article/...l#.UvcT61OScjV

Then there is the technical issues

http://www.newscientist.com/article/...l#.UvcT_VOScjW

But the $250 drop this week. As I said before, MTGOX has to keep market stability. They can, if buyers outpace sellers. However, if sellers overwhelm buyers, MTGOX has to draw against their dollar balances. Since Bitcoin has skyrocketed, MTGOX has too little cash to cover Bitcoins purchased at $.10 to $600 and have to redeem at $700-1100.
Same thing happened to the US Treasury in the 60-70's when they couldn't redeem dollars for gold fast enough. This is Bitcoin's problem.
In a stable market, all works well. In an extremely volatile market great fortunes and and poverty can be the result.
Market imbalance is one of the major causes the cash of '29.

02-08-2014, 10:42 PM
Sunny Day Confirmed User Industry Role: Join Date: Dec 2010 Posts: 1,406	Who has the hot potato last There's the optimistic view http://www.newscientist.com/article/...l#.UvcT61OScjV Then there is the technical issues http://www.newscientist.com/article/...l#.UvcT_VOScjW But the $250 drop this week. As I said before, MTGOX has to keep market stability. They can, if buyers outpace sellers. However, if sellers overwhelm buyers, MTGOX has to draw against their dollar balances. Since Bitcoin has skyrocketed, MTGOX has too little cash to cover Bitcoins purchased at $.10 to $600 and have to redeem at $700-1100. Same thing happened to the US Treasury in the 60-70's when they couldn't redeem dollars for gold fast enough. This is Bitcoin's problem. In a stable market, all works well. In an extremely volatile market great fortunes and and poverty can be the result. Market imbalance is one of the major causes the cash of '29.