Errata: Litecone -> Litecooin
"The exchange to ask" -> The exchange doesn't ask" "possess the privatekey" -> "possess the cryptocoin" On Wed, Feb 26, 2014 at 4:13 PM, James Bowery <jabow...@gmail.com> wrote: > That is essentially correct. > > A couple of nitpicks: > > 1) MtGox traded in only one cryptocurrency Bitcoin. It had multiple > sovereign currences against which Bitcoins could be traded. There were > continual rumors that MtGox was going to expand its cryptocurrency > offerings to, say, Litecoine, but that never happened. > > 2) The exchange to ask you for your private key when they create "your" > wallet. They create their own private key and you trust them to wire > cryptocurrency from that wallet to your wallet (your private key) at your > request. Until that transfer is done you don't really possess the > privatekey.. > > > On Wed, Feb 26, 2014 at 4:04 PM, Craig <cchayniepub...@gmail.com> wrote: > >> On 02/26/2014 03:38 PM, Edmund Storms wrote: >> >>> OK Craig, if the bitcoin can be stored in a person's computer, why are >>> people upset that they lost money from MtGov. How is that loss possible? >>> Did they fail to transfer the coin to themselves? In any case, for me to >>> sell my coin, I need an exchange that has money and access to my bank >>> account. Are you saying that I can give any of the exchanges my private >>> key and have them convert the bitcoin into money that appears in my bank >>> account? >>> >> >> Right, the people who lost bitcoins on MtGox were people who kept those >> bitcoins in a MtGox account, generally for the purpose of trading them on >> MtGox' exchange. MtGox was an exchange where bitcoins could be bought and >> sold for various currencies, including other crypto-currencies. >> >> Never give anyone your private key. When you want to sell your bitcoins, >> you send them to an account maintained by the exchange. Then you can trade >> the bitcoins for money, and then withdraw the money. Generally, an exchange >> will not wire you money until you verify your identity, in line with the >> know your customer rules. >> >> Craig >> >> >> >
