Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

Thus, I would be very surprised if MtGOX gets rescued.

I wouldn't be. I made the argument here, although it's a simplistic one:

http://theblogchain.com/2014/02/26/mtgox-is-getting-rescued-by-other-bitcoin-businesses/

Thanks.

I have one nit about your document: you suggest that the company that would rescue MtGOX could buy coins from the other exchanges. But the coins in the exchanges' wallets do not belong to the exchanges, they belong to their clients.

In fact, my preferred explanation at the moment for how MtGOX "lost" all those coins is that they sold them off-market in order to play with the cash, confident that they coudl re-purchse them if and when needed; but then the BTC price jumped from 100$ to 800$ in november-december, and they could no longer do that.

So, I think that it would be too risky (if not criminal) for the exchanges to sell those coins to the Save-MtGOX company. Ditto for any bitcoin investment funds.

Does this make sense?

I think that's a possible explanation re: Gox.

As for acquiring from other exchanges, they take in both USD and BTC in fees. They all have enormous BTC stashes as a result.