World's largest Bitcoin exchange suspends US withdrawals

[Cebu_4_2]

World's largest Bitcoin exchange suspends US withdrawals Get short URL (http://rt.com/business/largest-bitcoin-exchange-suspends-withdrawals-094/)
Published time: June 22, 2013 02:15
http://rt.com/files/news/1f/84/60/00/largest-bitcoin-exchange-suspends-withdrawals.si.jpg




Tags
Economy (http://rt.com/tags/economy/), Global economy (http://rt.com/tags/global-economy/), Globalization (http://rt.com/tags/globalization/), Information Technology (http://rt.com/tags/information-technology/), Innovation (http://rt.com/tags/innovation/), Internet (http://rt.com/tags/internet/), Politics (http://rt.com/tags/politics/), USA

(http://rt.com/tags/usa/)


For the next two weeks Bitcoin users in the US will be unable to withdraw the virtual currency in dollars. Major exchange Mt. Gox cited an unusually high demand as the reason for the suspension, while customers worried the company has run out of cash.


Mt. Gox, based in Tokyo, Japan, handles approximately 80 per cent of Bitcoin transactions in the US and 70 per cent internationally. The popularity of the service, which allows customers to buy and sell items with relative anonymity, has led, indirectly, to the current transaction freeze.


“Over the past week Mt. Gox has experienced rising volumes of deposits and withdrawals from established and upcoming markets interested in Bitcoin,” a company statement explained. “This increased volume has made it difficult for our bank to process the transactions smoothly and within a timely manner, which has created unnecessary delays for our global customers. This is especially so for those in the United States who are requesting wire transfer withdrawals from their accounts.”


Users are still able to deposit into Mt. Gox and continue trading on other Bitcoin services, but the update has fueled speculation that the largest Bitcoin provider has grown too quickly and simply run out of cash, an allegation the company has not addressed publicly.


“We are currently making improvement to process withdrawals of the United States Dollar denominations, and as a result are temporarily suspending cash withdrawals of USD for the next two weeks,” the statement continued. “Please be reassured that USD deposits and transfers to Mt. Gox will remain unaffected, as will deposits and withdrawals in other currencies, and we will be resuming USD withdrawals once the process is completed.”


Recent estimates indicate the number of Bitcoins in circulation is at approximately 11 million, with the collective market value nearing $1.4 billion. The price of one Bitcoin was 107 Friday, after fluctuating wildly in recent months, according to bitcoincharts.com.


While economists admit Bitcoin could have a bright financial future, its instability has been a point of reluctance for would-be investors. The temporary withdrawal restriction will almost certainly be another reason for hesitancy.


“Without a safe infrastructure, a digital currency will never achieve widespread adoption by a mainstream audience,” wrote Mark Courtney, a product and services director at GBGroup, an identity intelligence company, for Wired. “The initial success of Bitcoin proves that there is appetite for a type of digital currency, but without making the service trustworthy, more trading floors will close.”

[Ponce]

"If you don't hold it :)

V

[Shami-Amourae]

The US will clamp down on anything related to taking your wealth out of the dollar. This will benefit other countries and quicken the demise of the dollar. There will be new ways around this, and already are. Stay tuned.

Don't laugh and be like "Told ya so!", since they will come down on Gold/Silver eventually too.

[JohnQPublic]

Don't laugh and be like "Told ya so!", since they will come down on Gold/Silver eventually too.

That has been happening for a long time. The caveat in this case is that gold and silver are defined in monetary terms in the constitution. As much as the poor old document gets trampled, it is still payed lip service to. Bitcoins are not directly defined in that ancient and much maligned document.

[Horn]

http://www.youtube.com/watch?v=7nd21MhpqNo

[Ponce]

Shami? with a few key strokes you can fid the bitcoins but harder to do with PM.

V

[Shami-Amourae]

Shami? with a few key strokes you can fid the bitcoins but harder to do with PM.

V

And with Bitcoin I can walk with a billion dollars in my pocket and no one is the wiser. You can't do that with Gold/Silver. There are tradeoffs.

Try getting out of the country with a billion dollars in your pocket with cash, or Gold/Silver. Try sending your Gold/Silver anonymously over the Internet. Yes they are different. Yes they are both good and bad for different reasons. Don't write off either.

[Ponce]

Time will tell......but......if I did believe in bitcoins the I would then be into it right now......the devil is playing with you guys, and having a ball because he knows that at the end he will bite you in the ass.

V

[madfranks]

It seems almost every one of these bitcoin threads quickly turns into a "bitcoin is good/bitcoin is bad" back and forth. At this point I believe these two sides of the camp have been formed and we won't get much further making new ground into either side. Back to the OP, this shouldn't be surprising, with an explosion into the mainstream like bitcoin has enjoyed, the existing infrastructure simply cannot support it. There is currently big money going into developing a modern infrastructure to handle what is now a rapidly expanding billion dollar+ industry. Here's something to consider: when email debuted, it sucked too, with so many bugs and problems that many people declared email a failure and that paper letters would never die.

[Horn]

And with Bitcoin I can walk with a billion dollars in my pocket and no one is the wiser. You can't do that with Gold/Silver. There are tradeoffs.

Try getting out of the country with a billion dollars in your pocket with cash, or Gold/Silver. Try sending your Gold/Silver anonymously over the Internet. Yes they are different. Yes they are both good and bad for different reasons. Don't write off either.

And when you land outside the border you could have the equivalent 1/2 a billion dollars. If the TSA body scanner doesn't hone in on its signature and wipe it out completely.

Its like the jewish dark lightning loser of all currencies.

[Cebu_4_2]

And when you land outside the border you could have the equivalent 1/2 a billion dollars. If the TSA body scanner doesn't hone in on its signature and wipe it out completely.


Have to be able to trust someone on the other side and give them access to your wallet.

[Horn]

Have to be able to trust someone on the other side and give them access to your wallet.

I could offer the service, but cashing out in Costa Rica is probably even harder than in the U.S.

If you could even create a bank account here, El Bancoistas must love the hidden velocity it offers them.

[Shami-Amourae]

And when you land outside the border you could have the equivalent 1/2 a billion dollars. If the TSA body scanner doesn't hone in on its signature and wipe it out completely.

Its like the jewish dark lightning loser of all currencies.

They can't. That's not possible.

[Horn]

They can't. That's not possible.


http://www.youtube.com/watch?v=oXv3SSijPFc

[Shami-Amourae]

It seems almost every one of these bitcoin threads quickly turns into a "bitcoin is good/bitcoin is bad" back and forth.

I get frustrated since almost every time I hear criticism it's about something that is completely untrue about the technology. Things that are coded and open sourced are not secretely run by the bankers/NWO/Jews. Evil hides in the shadows, so then why are these cryptocurrencies open sourced? The code is there for all to see, there is complete transparency. You can't get anymore proof of it's legitimacy, but it's still magic voodoo to people who don't understand this. Maybe I do have a bias too since I'm a professional programmer, so I know that code is code and it cannot have magic voodoo loopholes in it. The lack of understanding of the basic fundamentals are mindblowing. It's like listening to people say Gold has no value since it's not backed by anything, or Ted Stevens saying the Internet is a series of tubes. I don't know how explain these things since everytime I do they are either purposely ignored or forgotten when the same criticisms are brought up again and again. It's like a stay on the plantation slave attitude where all technology is so evil and cannot never be trusted/used to liberate humanity.

We will not free humanity through voting. We will not free humanity through violent revolution. We will only free it by creating new decentralized systems free of the controllers through technology. I don't see any other path.

@Horn:
Bitcoins are stored in a decentralized cloud. A TSA agent cannot magically "vacuum" up your Bitcoins, especially if it's encrypted and stored as a PDF file or something. You can also E-mail your wallet file with encryption to yourself and walk over a border with nothing on your body, then still have access to your money.

[Horn]

Evil hides in the shadows, so then why are these cryptocurrencies open sourced?

So they can carry child porn links upon them?

[Shami-Amourae]

So they can carry child porn links upon them?

WTF are you talking about? Child porn almost never exists. It's just a BS tool Feds use to frame/imprison people. If I'm a cop I can say you have child porn and throw you away in jail for life.

[Shami-Amourae]

By the way, it looks like CampBX allows Dwolla transfers. You can get in/out of Bitcoin again easy with your bank account.

https://campbx.com/dwolla.php

[Horn]

@Horn:
Bitcoins are stored in a decentralized cloud. A TSA agent cannot magically "vacuum" up your Bitcoins, especially if it's encrypted and stored as a PDF file or something. You can also E-mail your wallet file with encryption to yourself and walk over a border with nothing on your body, then still have access to your money.


http://www.youtube.com/watch?v=gdNE7gjSE0w

[Cebu_4_2]

http://www.youtube.com/watch?v=gdNE7gjSE0w

So what happens to the chick?

[Horn]

So what happens to the chick?

She had to go make a toilet paper withdraw...lol!

[Horn]

I guess, I neglected to mention my Passport was lost when arriving into the U.S. this pass.

I'm almost positive it was sucked up thru TSA machine in Houston.

Luckily after many passes more thru same type of security at the Philadelphia branch of customs I was able to retrieve a new one rapidly with a $225 rushed processing fee.

Had I not had my backup duplicate birth certificate packed, I might have still been A-wall in the U.S.

[General of Darkness]

Who controls bitcoin?

[Horn]

Who controls bitcoin?

Besides nobody, apparently a priest who sits atop Mt. Gox in Japan somewhere.

[Rubberchicken]

An EMP event- natural or man originated would pose a problem for Bitcoin holders. The electrical grid is more vulnerable than ever and I personally don't like the risk/reward analysis associated with Bitcoin in this respect.

[General of Darkness]

Besides nobody, apparently a priest who sits atop Mt. Gox in Japan somewhere.


Sounds legit, lets do it.

[Shami-Amourae]

Who controls bitcoin?
Who controls the Internet?

[madfranks]

We will not free humanity through voting. We will not free humanity through violent revolution. We will only free it by creating new decentralized systems free of the controllers through technology. I don't see any other path.

This is a key point, the possibility of which is not considered much by many folks here. For a long time, I thought the only two choices were revolution or submission. I now see, and advocate for, the third option, which is to use technology to make TPTB and all the elite rulers of the world OBSOLETE.

[Rubberchicken]

Who controls the Internet?

what are you some kind of noob? It's the jews stupid. Maybe we should start a thread about them....

[madfranks]

By the way, it looks like CampBX allows Dwolla transfers. You can get in/out of Bitcoin again easy with your bank account.

https://campbx.com/dwolla.php

Also, you can link a bank account to coinbase and buy/sell directly through them. I use their service for investing in bitcoins, and would recommend it.

https://coinbase.com/

[Shami-Amourae]

The Jews don't control the Internet. It's decentralized. No one does. The Internet was specifically designed so no one could ever control it. You can pass laws and do this and that on the Internet, but no one group has control over it.

[Horn]

This is a key point, the possibility of which is not considered much by many folks here. For a long time, I thought the only two choices were revolution or submission. I now see, and advocate for, the third option, which is to use technology to make TPTB and all the elite rulers of the world OBSOLETE.

I think someone posted a WorldCoin thread earlier.

Seeing as how your BitCoin world is finite.

The Shami-Horn is still due for release...


http://www.youtube.com/watch?v=sZHCVyllnck

[Shami-Amourae]

I think someone posted a WorldCoin thread earlier.

Seeing as how your BitCoin world is finite.

What is BitCoin?

[Horn]

What is BitCoin?

Its just like Wonka's Golden Tickets.


http://www.youtube.com/watch?v=r2pt2-F2j2g

[Shami-Amourae]

what are you some kind of noob? It's the jews stupid. Maybe we should start a thread about them....


The Jews control the media, politics, the government, the education system, banks, corporations, and so on. They control the markets which Gold/Silver are part of. Why do we buy Gold/Silver when we know the Jews can make Silver $5, and then $100 the next day all with a few clicks on a mouse? Why do we buy something we know is completely manipulated? Is it because we think it won't be manipulated in a couple years?

I'm tired of playing a rigged game I cannot win. I'm sick of playing by their rules. So fuck them, I'm making my own game, a system these fuckers cannot control. In fact no one will even be able to control it, not even me once I've released this technology in an open source manner out to the world. I can only do that with technology and these new emerging systems. I'm leaving the plantation. No, I'm not going to be a house nigger with you anymore. Keep your tongue squirming up the bowels of your Jew-master's asshole, I'm not doing it anymore. I'm not going to sit around and wait for my demise and then laugh at people who actually get up and fucking do something. I want to be free, so I'm going to just do it.

[Horn]

An EMP event- natural or man originated would pose a problem for Bitcoin holders. The electrical grid is more vulnerable than ever and I personally don't like the risk/reward analysis associated with Bitcoin in this respect.

You just stay in that cubicle we've created specially for you...:)

http://www.gamasutra.com/db_area/images/feature/3579/tinfoilprank.jpg

[General of Darkness]

I asked a legitimate question. Who controls bitcoins? Because the title of the story World's largest Bitcoin exchange suspends US withdrawals means that SOMEONE had to make that decision or is bitcoin run by Unicorns with fairy-dust?

[Horn]

No, I'm not going to be a house nigger with you anymore.

Sup my nigga...?


http://www.youtube.com/watch?v=iqnMrynpq9U

[Shami-Amourae]

I asked a legitimate question. Who controls bitcoins? Because the title of the story World's largest Bitcoin exchange suspends US withdrawals means that SOMEONE had to make that decision or is bitcoin run by Unicorns with fairy-dust?

What happened was the government pressured Dwolla to severe ties with Mt. Gox. Then Mt. Gox pretty much had to do all it's transactions with it's bank, but since of that it got overwhelmed and the bank couldn't handle all the traffic. Mt.Gox is currently run by Mark Karpeles, so if you want to point to anyone who has the more INFLUENCE (not control) in the cryptoworld it's definitely him. Because of the heavy bank traffic situation Mt. Gox had to suspend until they could get a handle on the situation and get more funding options up and running. The real issue with Mt. Gox is it's NOT a very professional operation and they cannot handle all the traffic and business done on their systems since of the explosive growth. The biggest issue with Bitcoin for years has been Mt. Gox, which is that so much of the buy/sell has been done there. With all these revelations new exchanges are up and running and more and more people are going to them. The free market is fixing the situation slowly. I haven't used Mt. Gox in a while and have only been using other exchanges.

In other words the World's largest Bitcoin exchange suspends US withdrawals is both good and bad:
The bad: It may drop the price of Bitcoin and destroy some short term confidence
The good: It will give a larger window for Mt. Gox competitors to come in and take more of a larger role. You can already buy/sell Bitcoins with money from Dwolla again WITH OTHER EXCHANGES. This just happened! Every time the government tries to clamp down, more alternatives keep popping up. It's beautiful!

The best thing the could happen to Bitcoin is if Mt. Gox went under somehow, or just lost a huge percentage of it's market share and faded away into history. I don't exactly like saying that since I really like Mark Karpeles, I think he's an amazing, hard working person, who has dedicated every fiber of his being to destroy the banking system. The government seems to be focusing entirely on it, so I hope they succeed. It will be like when the government shut down Napster and then we got Bit-Torrent after that.


From Mt.Gox's Facebook (https://www.facebook.com/MtGox?hc_location=timeline)

Dear Mt. Gox Customers and Bitcoiners,

The reaction since yesterday’s statement regarding the temporary suspension of U.S. dollar withdrawals has had mixed reactions, and raised more than a few questions about why we had to take this step right now. Rather than be subject to inaccurate speculation we’d like to clarify some points here. Due to pending matters we are unable to get into everything in great detail, though we’d certainly love to and are looking forward to the opportunity.

1) The problem with the U.S. withdrawals (and even other currencies for that matter) is that our bank can no longer handle the volume of withdrawals. They struggled in the last two months, and the increase due to the Dwolla separation has made it increasingly more difficult. The pressure we brought onto the bank’s resources finally gave in, and we are now working with them to find an alternative method (hence the suspension). We would have preferred to give notice if we were able to, but it was sudden for us as well.

2) We are now working with new banks and alternative methods for transmitting money to our customers. This does not mean we are stopping entirely within the next two weeks, but it will be slower than we would like. We are literally going to use our manpower to process withdrawals ourselves, manually. This will take more time, but we are dedicated to doing as many per day as possible. We announced a suspension in order to manage expectations while we deliver at a temporary reduced rate. Our goal is to have a new system set up in the next weeks with clarity for both the banks and for our customers.

3) Our previous release was rather vague, but for a reason. Mainly, we don't want to upset our bank! They do great work, but our kind of business is completely new to the banking industry. Processing international wires does not just involve pushing a button. It requires real manpower processing everything individually, even in this modern computer age. While Bitcoin's power lies in its ability to transfer fast and securely through software, the rest of the financial world does not operate like that (contrary to popular opinion). Money is surprisingly analog in many ways, and scarily digital in others.

4) Every customer’s funds are safe, sound, and accounted for. In fact, in our dealings with the Japanese financial regulators we have been assured that we are not under local pressure or suspicion and can operate as usual within normal legal frameworks.

5) Mt. Gox is certainly not a martyr, but it would be hard to argue that we aren’t "taking one for the team" as far as Bitcoin is concerned. We are a big target, and are absorbing the frustrations of Bitcoiners, regulators, banks, and a media that still doesn't quite understand what Bitcoin is. This is a job we are happy to fill, and not just because we are compensated for it. Our hope is that, once Bitcoin finds its place, we will be able to say that we made a difference in sorting it all out in the early days. New exchanges, business models, merchants, traders, and consumers are rising up to innovate and create a whole new way of doing business. A lot of lawyers are getting new cars in the meantime too.

6) As risky as it is to invoke the name of Litecoin (LTC???), we must apologize for not keeping everyone up to date. The fact is that the current situation means a continued delay, but for good reasons. We’re looking at July right now, though that depends on a few things. Mainly, we want to do things correctly from the beginning.

7) The new trading engine is finished, is smokin’ fast, and is currently undergoing bench tests. We’re looking forward to deploying it very soon.

While not the most in-depth update we'd like to give, we hope that it has at least clarified a few things. In the next few weeks we are planning to do another AMA on Reddit when we’ll hopefully be able to answer many more questions and also shed some light on what’s been going on at Mt. Gox these past months. Thank you for your patience and support.

[Horn]

5048

[Ponce]

As the old saying goes......"I'd rather be a big frog in a small pond than a small frog in a big pond"......there is need and then there is greed........I am happy as I am.

V

[madfranks]

You're happy because you've already made your fortune and are comfortable. Lots of us are still working on accumulating our fortunes. :)

[Rubberchicken]

Oh the irony!

Says " Keep your tongue squirming up the bowels of your Jew-master's asshole"
- makes porn for living. Shovel your BS in another direction.

[gunDriller]

Oh the irony!

Says " Keep your tongue squirming up the bowels of your Jew-master's asshole"
- makes porn for living. Shovel your BS in another direction.


i have been stabbed in the back by a Jew manager, working in techno-corporate America.

i have 2 close friends working in senior management. one at an Internet start up, another at a large publicly held company. both work for Jews. both embrace the Zio-world.


if you can be self-employed, and more independent than my friends who work for Jews, or me when i worked for Jews, what's not to like ? if the product is porn-related - so what ?

on the moral scale, i would say that is WAAAAY more moral than me designing sophisticated killing machines (e.g. F-22 radio) for the MIC. that was a job that would have been considered respectable in 'polite society'.


and finally i will say, i had the idea for the Woofer-Dildo 2 decades before it finally came to market. but i didn't act on it, someone else made it first.

[Ponce]

LOL Franks..........my real fortune is what is in my mind and not in my pocket..........I can assure you that many of you have a lot more than what I have.......but........at the same time I need a lot less than what you need.

V

[Horn]

LOL Franks..........my real fortune is what is in my mind and not in my pocket...V

Do you have enough old shopping bags to store it all in? :)

[Ponce]

More like a gun safe burried ten feet under hahahahahahahaha.

V