Did Mt.Gox do something again?
After breaking this story over a month ago, there seems to be an opinion forming that Mt.Gox isn’t playing fair with consumers when it comes to the price of Bitcoin. And in some senses, there may some truth to this, but the fact is, Mt.Gox has indeed inflated and maintained it’s Bitcoin price by a 7-13% margin depending on the day and it’s getting to be old news that time after time, Mt.Gox is behind some type of scandalous behavior.
Today the issue is the same as it was last month when we broke the story on “Exchange price differences” and it apparently took the reach of Forbes and the Washington Post to get the word out. Of course, with every action comes and equal and opposite reaction, where in this case, the price of Bitcoin has again fallen 15% on average when it was on a steady price increase.
So who’s to blame? Mt.Gox for price gouging or the media for the FUD being reported. At least with BTC World News, we do our best to sort through the drama and find out what really is going on. And we don’t need to FUD up the latest events when it comes to Bitcoin, we just report our findings and put it into a balanced perspective.
Though again, per the question of who’s to blame here, it’s technically both sides.
- Mt.Gox: Because they are in fact 7-13% higher than other Bitcoin Exchanges. As of the writing of this article, the prices are as follows,
MTGOX – $129.004
- The Media: FUD is the number one problem with wide spread media, it can make a market popular or turn it against itself. Part of the issue is mainstream reporters are fairly unknowledgeable about Bitcoin and one might think if a mainstream reporter writes a Bitcoin story, it’s likely because their Editor has their head on the block for not producing enough quality mainstream content. Yes a form of editorial punishment and “it what it is“. (just an opinion)
We appreciate reporters out there like Richard Engel who actually are engaged with the topics they specialize in. Richard lives the news and you can bet, if he reports something, it is spot on. But when a reporter notes he has a sum worth of 0.1 Bitcoins, it’s likely safe to say, this person has about 0.1 knowledge on the topic and was likely subject to editorial janitorial duty that day.At BTC World News, we consistently engulf ourselves in Bitcoin news, information and trends and we can’t say how many times, we’ve nailed a topic spot on and it’s important to recognize the differences out there. Now we’re not tooting our own horn, well kinda, but again.. it is what it is and the bottom line is, don’t send a florist to fix the environment or just because you have a computer, your a technical professional.
As we mentioned previously, the Washington Post and Forbes recently introduced an article about Mt.Gox and the inflated prices where we felt obligated to provide in the comments section that NO, “in fact we were the first to break the story on Mt.Gox price differences”. And did we get credit, of course not and that’s fine at the end of the day, we know we were first, not to mention the time stamp on the article helps prove the point.
Anyhow, Mt.Gox is likely going to continue to price their Bitcoin higher than everyone else out there mainly because they can, though with recent “Buyer Beware” articles flowing around the internet, reports have also surfaced alleging the difficulties of getting your money back from Mt.Gox when your ready to cash out which is probably one of the reason why theres been a decline in Bitcoin prices lately.
So let’s keep this realistic, what defines difficult anyways? A 10+ business day electronic money transfer? Really, that is so difficult because last we checked, it’s a fairly common practice. In fact just today, we rented a movie from a popular video box, and in effort to get the movie we wanted, resulted in multiple transactions pending. This wasn’t there fault because we hit the reserve now button a few times. So of course, we called the popular video box service and they told us that, “it’s no problem, it will drop off your account in up to 7 days.” “Hey, I didn’t even get anything and I have to wait up to 7 days to have access to my money again?”. Ok so lesson learned. Don’t hit the reserve button after the first time it says, that movie isn’t available. And on that same note, if it bother’s you that much to wait 10+ days for your Bitcoin payout, there’s plenty of other Exchanges out there that can help move money quicker for you.
Fact is, it’s truly the nature of the beast which introduces perhaps where the real problem lies. Any rocket scientists out there want to take a stab at it? It starts with a B, ends in K and has AN in the middle. Yes and for those challenged, that spells BANK. You want your cash back, it has to come from the bank, now doesn’t it?
And YES, it would be the BANK who is holding up my non-video purchases refund and who is likely the entity which makes cashing out of Mt.Gox, the time consuming villain of this story. Without doubt, Mt.Gox likely drags their feet somewhat enabling you to cash out, or charges premiums to get it faster, that’s business for you though. Then add insult to injury and introduce the financial system, hence the bank, top it off with a few international transfer rules and the result is 10+ business days of financial agony and perhaps part of the reason Mt.Gox inflates their rates because they are the international hub of Bitcoin.
Now by no means are we sticking up for Mt.Gox, as they declined our recent request for comment and they don’t have any brownie points with us when we broke the story originally back in the end of July. Which, if your interested in reading, please see these 2 links. Serious Price Differences and Bitcoin Trade Price Differences because by no means is Mt.Gox completely free of scandal. Mt.Gox could do business better, but again, it is what is.
The bottom line here is that mainstream processes are hindering the transition to Bitcoin, and when we say mainstream, it’s quite vast how many entities are involved in the financial system. It’s likely safe to say that mainstream processes aren’t interested in Bitcoin because it creates the need for them to change from the way there doing things and for them to change means they have to work to keep up and rethink their business models.
The fact is, Bitcoin is becoming more and more popular by the day, so the next time you read some FUD, stop by and check BTC World News to see if we have a take on the issue. If you don’t see anything from us, it likely is FUD. And since we’ve now introduced a concern of what the financial system impact to Bitcoin is, it would be interesting to see what the popular mainstream news sites report on further as this topic spans outside of our Bitcoin reporting zone. “Bitcoin connects to the Bank bone, the bank bone connects to the…”
Oh and for those who don’t know what FUD is, it’s “Fear, Uncertainty and Doubt”. Makes sense now doesn’t it?
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