Hacker News Reader

Comment by jordhy | Hacker News Reader

While we debate this, the bitcoin price has plummeted to 510 USD.

Meanwhile @twobitidiot maintains the plausibility of these claims. He says that he will post more information on his feed.

I think we should follow him on twitter to find out more about this situation and protect our crypto-investments.

If the claims are true, bitcoin could see one of its biggest crashes.

View on HN

The question, as always with markets, is how much of this is already priced in. The MtGox BTC price has diverged for quite some time and is currently at $115 which tells me that a lot of people are already assuming a low probability of ever seeing any of the money in MtG accounts again.

So, basically there are two scenarios and combinations thereof if they indeed lost all of the coins: 1) Most of a complete loss is already priced into the general BTC market and nothing much happens. 2) Once this gains more (mainstream) attention and the general public realises what has happened, the trust BTC had been able to gain evaporates and there will be strong sell-off.

I don't think it's possible to say which one it will be.

while there is some default risk (but perhaps not enough?) priced into the mt.fgox price, the general bitcoin price doesn't appear much affected, certainly not proportionate to the damage that could be done, or already has been done, to the whole bitcoin ecosystem.

Reply on news.ycombinator.com