Mt. Gox Meltdown: Crashing Bitcoin Price at Troubled Exchange Draws Speculators

Mt. Gox Meltdown: Crashing Bitcoin Price at Troubled Exchange Draws Speculators
Bitcoin’s price collapse at the unraveling Tokyo-based Mt. Gox exchange continued early Friday, with the cryptocurrency at just above $100.
Meanwhile, the major fully-functioning exchanges elsewhere are seeing some declines, but bitcoin prices are mostly hovering in the $500-550 range.
Just last month, before Mt. Gox halted withdrawals and blamed bitcoin wallet protocol for its functionality issues, the Tokyo exchange’s price was often $50-$100 above most other exchanges.
But things have drastically changed since last week, when Mt. Gox angered the bitcoin community and its customers who were already reeling from delayed withdrawals.
Now, speculators are swooping in. Mt.Gox customers who have serious doubts about ever recovering their bitcoins have begun selling the rights to them at deep discounts. The buyers are speculating that Mt.Gox will eventually make good on its promise to fully restore withdrawals.
Speculators could make some big returns. As of this writing, these buyers could reap $400 profit per bitcoin if they were able to gain possession and sell at Bitstamp or BTC-e.
But these Mt. Gox speculators may see better odds at a casino, or better yet they could use their bitcoins at a bitcoin casino, you’re able to learn more here about the inception and rise of some popular cryptocurrency casino’s.
Mark Karpeles, CEO of Tokyo-based Tibanne, the operator of Mt. Gox, declined to comment on the financial status of the exchange when asked by the Wall Street Journal in an email interview. That non-response has deepened concerns among Mt. Gox customers.
“We understand your concern on this issue,” said Mr. Karpeles in the email on Monday. “However, any customer-related questions are confidential.”

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