Mt Gox: Still a Scam

Yesterday, I moved my old refrigerator to my garage. When I woke up today, there was an icebox in my kitchen and nothing in the garage.

Mt Gox released a report stating that they had “found” 200,000 of the ~850,000 “lost” bitcoins. (The English version is on the second page.)

“But I thought the hackers proved that Mt Gox was a scam from the start?” (me to myself a few days back)

No. That was another scam. This stuff is getting problematic.

Disregarding that. This playout of events is unusually similar (see “Copycat Scam”) to MyBitcoin. After shutting down and claiming hax, they “recovered” 49% of their bitcoins and gave them back to the customers.

Mt Gox has not yet offered the 200,000 bitcoins they found back– likely, more bitcoins will be magically discovered, and then they will allow customers to retrieve a percentage of what was lost.

This only convinces me further of foul play. Think about it. What kind of atrocious accounting does it take to allow 200,000 bitcoins to sit around and not be verified when switching systems?

That’s like moving into a new house and taking a month to realize that you forgot to bring your family.

Or, as a more accurate analogy, depositing $1000 into a bank and taking a month to realize that your account only has $800.

You don’t even need to keep a record. Ignoring that a TRADING MARKETPLACE needs to have everything on record, how can you not bother to notice that A FOURTH OF YOUR MONEY ISN’T THERE?

For Mt Gox to have “thought” that these old wallets contained no bitcoins, they must have failed to check how many bitcoins they actually had in the new wallets. Which means, either Karpeles is such a retard that he doesn’t know how to count, or he purposely left those 200,000 bitcoins behind… to reproduce MyBitcoin’s scam.

I, personally, would be more likely to believe the “haxors” story were Karpeles not to have released this preposterous report. I suggest you do similarly. I am eager to see how this will progress.

On Nakamoto: the Mainstream Media Sucks

I was appalled by Newsweek’s article claiming they had found the founder of Bitcoin– an old model train enthusiast in California.

There was so much stupidity in this, previous, and subsequent reportings that I decided to dedicate an article to media stupidity.

Let me first quote Goodman to clear up just how unlettered she is on the topic of Bitcoin.

Even so, Bitcoin is vulnerable to massive theft, fraud and scandal, which has seen the price of Bitcoins whipsaw from more than $1,200 each last year to as little as $130 in late February.

Where the hell did you get the $130 from?

There’s only one place where Bitcoin has dropped to $130 (it’s currently at $600, likely in light of Goodman’s stupidity), and that’s on a dead exchange called Mt Gox.

Someone who can’t identify the current price of Bitcoin has no right to be making such pretension to finding the most elusive character in Bitcoin.

Let’s follow up by pointing out that the real Bitcoin founder came out to say that he is not Dorian Nakamoto (the poor guy in California).

Not Nakamoto!

This should clear up that Goodman was wrong. But you know what the media are doing at this point? Celebrating that they found Satoshi! They haven’t even noticed this! They haven’t even noticed that Mt Gox doesn’t represent current Bitcoin prices!

One of the things that characterizes the mainstream media is that outside of domestic issues, they usually have no idea what they’re talking about. (And domestic issues too, sometimes questionable.)

Remember Mt Gox? The mainstream media actually believed it was hackers. (Head over to a site with people who know and cover Bitcoin, like Falkvinge, and you’ll get an idea fairly quickly about how preposterous that idea is.)

Next, they assume that a cryptography expert uses his real name online, and attempt to chase him down. When they find a suspect, they didn’t stop to think that hundreds of cryptography experts have NOT made any progress on finding a person they worked with. Bitcoin cofounders have no idea who Satoshi is, and never have. They don’t even know if Satoshi is one person. (But they have discovered that he “sleeps” in the Eastern or Central Time Zone. I can see the headlines: “RUSSIAN STUDENTS KNOW MORE US GEOGRAPHY THAN US JOURNALISTS”)

And most golden of all: the media has literally brainwashed us into thinking that Putin is invading Ukraine and trying to reunite the Soviet Union. You can see one of my previous posts, but in short, Crimea wants to secede to Russia and Russia is welcoming them. What a joke.

Either the media is completely retarded or actually is trying to make everyone stupid. Or maybe it’s just Newsweek that would publish something this preposterous.

Don’t trust the mainstream. I’m not saying this in a hipster way, I’m saying this because they lie. Crimea is not being overtaken by imperious Russian soldiers, and the poor guy in California is not Satoshi Nakamoto. But if you subscribe to the mainstream, you will think otherwise.