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Comment Not unexpected (Score 1) 695

Well, you can't say it was unexpected. There have been problems with Mt. Gox for months now, ever since dollar withdrawals were stopped, so anyone using them was doing it at their own risk.

Cautious people would have sold their trapped dollars at a discount while they still could, and taken out all their bitcoins, so they wouldn't have lost too much. The unwary... well, they'll pay some stupid-tax.

Submission + - Bitcoin's Mt. Gox Shuts Down, Loses $409,200,000 Dollars (forbes.com)

satuon writes: Mt. Gox’s shutdown is circulating like wildfire. Its repercussions are being felt throughout the world. Mt. Gox was the most public and well-known brand that represented Bitcoin’s exchange market. The company’s shutdown is rumored to be caused by a “hack” or “security breach” that resulted in a loss up to 744,000 BTC or $409,200,000 Dollars. (Based on the approximate value just hours ago from Coindesk.com) This is truly an unfortunate event that has caused the international community to shake its trust in Bitcoin as evidenced by the massive price drop. This is par the course, when a pillar in the community falls in such a funeral pyre. The best parallel would be the Bear Stearns’ failure during the 2008 global financial crisis. Hopefully, Bitcoin won’t follow in the financial system’s footsteps post-Bear Stearns.

Submission + - Mt Gox hacked. All coins gone. (wired.com)

ch0ad writes: Mt. Gox, once the world’s largest bitcoin exchange, has gone offline, apparently after losing hundreds of millions of dollars due to a years-long hacking effort that went unnoticed by the company.

The hacking attack is detailed in a leaked “crisis strategy draft” plan, apparently created by Gox and published Monday by Ryan Selkis, a bitcoin entrepreneur and blogger (see below). According to the document, the exchange is insolvent after losing 744,408 bitcoins — worth about $350 million at Monday’s trading prices.

Submission + - Apparent Theft at Mt. Gox Shakes Bitcoin World (nytimes.com)

Hugh Pickens DOT Com writes: The most prominent Bitcoin exchange appeared to be on the verge of collapse late Monday, raising questions about the future of a volatile marketplace. On Monday night, a number of leading Bitcoin companies jointly announced that Mt. Gox, the largest exchange for most of Bitcoin’s existence, was planning to file for bankruptcy after months of technological problems and what appeared to have been a major theft. A document circulating widely in the Bitcoin world said the company had lost 744,000 Bitcoins in a theft that had gone unnoticed for years. That would be about 6 percent of the 12.4 million Bitcoins in circulation.

Submission + - Apparent Theft at Mt. Gox Shakes Bitcoin World (nytimes.com)

mendax writes: The New York Times is reporting that Mt. Gox, the most prominent Bitcoin exchange, 'appeared to be on the verge of collapse late Monday, raising questions about the future of a volatile marketplace.'

'On Monday night, a number of leading Bitcoin companies jointly announced that Mt. Gox, the largest exchange for most of Bitcoin’s existence, was planning to file for bankruptcy after months of technological problems and what appeared to have been a major theft. A document circulating widely in the Bitcoin world said the company had lost 744,000 Bitcoins in a theft that had gone unnoticed for years. That would be about 6 percent of the 12.4 million Bitcoins in circulation.'

Maybe the U.S. Dollar isn't so bad after all.

Comment Re:Grossly overpaid (Score 1) 280

It's worse than that. Most of those users are not paying anything at all. WhatsApp was free until recently, and now they are free for the first year and after that you have to subscribe. I don't know how many users are paying but they had $20 million dollars revenue for 2013.

Now, I can't find info, but IF they introduced the fee less than one year ago, then it's a time bomb, and there's no telling how much users they'll have left after everyone has to pay. Free apps always have more users than paid apps, even when you pay a little.

Comment Re:How do they break even? (Score 2) 280

WhatsApp already has 450 million users, if Facebook were to roll out their own app, they would have 0 users, and would be trying to take away from an incumbent. WhatsApp didn't have to take them away from anyone, they had first-mover advantage.

Comment Re:How do they break even? (Score 1) 280

When did they start with the $1 fee? Has one year passed yet? I.e. are there users who have already had to stop using WhatsApp or start paying? I would be interested to see the conversion rate, how many start paying vs how many drop out.

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