Post
Topic
Board Service Discussion
Re: Reason why MtGox can go to 0 - without arbirage opportunity with Bitstamp
by
Barek
on 16/02/2014, 18:32:40 UTC
no, if MtGox exchange is short BTCs, the low price of BTC on mtgox is FAKE. there are no BTCs to be bought at $250.  The price of $250 is probably
( (Actual number of BTCs on mtgox) * Bitstamp price ) / (Number of BTCs that mtgox is representing they have)

You are assuming that someone stole more BTC than MtGox total profits divided by $250 (see how a low number here helps MtGox?).

And even if this is still the case, like I said, they could borrow against the fiat they are holding for their customers.