Is MTGOX Screwed?

Is there a reasonable expectation that MTGOX Bitcoin holders will get their money or coins back?

In short, I believe the answer is probably “yes”.

By now, most people are aware of the drama that is MTGOX. To summarize, over a million people have tons of money stored in their account which is managed by MTGOX. The company made some very serious announcements indicating security breeches. They stated that they must temporarily halt all transactions, which needless to say, has people furious and scared. On top of that, the value of Bitcoin dropped significantly, currently at 124 per btc, whereas the market average is above 600/btc.

Protesters began protesting, media started doing the opposite of mediating, and investors started divesting. Additionally, MTGOX announced they moved their address to a “Virtual Office“. This does not bode well. However, it’s a practical business move when people are physically threatening you.

One glimmer of light is the upcoming Bitcoin Builder website, which claims to offer real bitcoins for your “Gox” bitcoins. This indicates that at least someone believes that MTGOX will still hold value and is willing to put their virtual money where there mouth is.

MTGOX Scams Millions!

You might ask yourself these questions:

  • Is Bitcoin Builder a scam?
  • It MTGOX a scam?
  • It Bitcoin a scam?

The answer is yes and no, depending what you consider a scam. ANY business can be considered a scam if I define the term loosely enough. But in the virtual currency world, there is less protection and less transparency, making it easier to get away with “Mess ups”, and ultimately seem like it was a scam from the very beginning. But it’s not.

What’s my reason for this bold assumption? Well a psychological technique called “lie-spotting” and deception intent has indicated to me that there is some altruism in their actions. Ugh, nevermind, we’re fucked.

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