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I was really tired during this video, but I had to do it because I really think I can help people save a ton of money. I'm a trader, which is all about making money, but capital preservation comes before profits. You can't make money if you lose it all.
In this video I want to talk about the Truth about bitcoin exchanges.
I've continually said that I don't trust any bitcoin exchange or 3rd party service... And that I think MtGox is a joke and even though they were one of the pioneers of bitcoin exchanges, that I have ZERO trust for them. I've even been predicting for months that they're going to have some tremendous liquidity issues.
Anytime a broker, exchange, bank, friend you've lent money to, or anyone else "holding" your capital isn't able to prove they have your money, always assume the worst.
4 reasons why they would halt withdraws:
1. they are not solvent
2. they're having "technical issues"
3. they're under investigation
4. they're not willing to allow a "run on the bank"
Keep in mind... MtGox is NOT insured - they close, you lose your coins
The fact that their CEO, Mark Karpeles isn't saying anything is a HUGE concern. If things are 100% Ok, why the hell isn't he screaming that from the mountain tops? From where I'm sitting, the only reason he's not publicly reassuring people is because there really is a bigger issue that he's not being transparent about.
Interesting developments: https://coinwatch.wordpress.com/2014/02/06/mt-gox-btc-withdrawals-broken/