Ninjastic
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Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
virtualfaqs
on 20/02/2014, 08:41:01 UTC
Quote from: gizmoh on February 20, 2014, 08:37:49 AM
Quote from: virtualfaqs on February 20, 2014, 08:31:59 AM
Quote from: Keyser Soze on February 20, 2014, 08:27:05 AM
Quote from: virtualfaqs on February 20, 2014, 08:25:24 AM
If you trade your Mtgox BTC to Bitcoinbuilder and Mtgox declares bankruptcy, what happens? Briefly looked over the website and found nothing.
I would assume they would return them to the actual owners. Not that it would matter much...

Mtgox BTC would be $0, so Josh and all the people who fulfilled buy orders would be screwed. But would Josh fulfill his transactions to those who had successful Sell Orders on his site? That's the real question.

Josh is a market maker, he doesn't own any Gox-btc apart from the 2% fee on buy orders. Buyers of Gox-btc do. They reap the reward or take the hit.

I'm not 100% sure how Bitcoin Builder works. But I thought you sent your Mtgox BTC to Josh and Josh also holds all the real BTC. The Mtgox BTC and real BTC stays with him until you withdraw like an exchange.