Intersango down

Trust in short supply

My method of trading is a complete mess but goes something like this. Buy bitcoins using local bitcoins paying with an online bank transfer. Transfer bitcoins to intersango, sell bitcoins into euros using intersango, buy back bitcoins using euros held in intersango.. and so on. This odd method of trading came about because of difficulties buying from intersango using GBP and selling to local bitcoins because most seem to require cash transaction in person.

So whats the problem? Although its a bit convoluted I can buy bitcoins and I can sell them? Or can I ? Tonight Intersango is not available. The website is down for maintenance. There is no indication when it might come back online. Initially there apparently was a message about being down for 3 days because the system administrator is unavailable.

Is it just me or is this unacceptable? The market is on fire, we are on the cusp of new highs in prices and suddenly the admins decide to take the site offline for maintenence? Are they for real? Lets be frank, bitcoins are no longer a silly little side project for computer geeks. More responsibility is required.

Maybe you think I’m making a storm out of a teacup here but this is ringing a very uncomfortable similarity with bitcoinica for me. Just as with bitcoinica I started to trust my money with someone else, just as with bitcoinica a little bit of greed started creeping into my thinking. With bitcoinica I was lured by a promise of being paid interest on my bitcoins if I held them there. Shortly after that those bitcoins were stolen from me, never seen again to this day.

With Intersango I have been lured again, this time by the promise of being able to buy and sell my bitcoins at critical times  in the market to hopefully profit by timing the correct moments to buy and sell, thus accumulating more bitcoins (or pounds).

Is this a case of history repeating? Hopefully this is just what it says,

Maintenance is ongoing. We apologize for the delay in return of service. – Team Intersango

Hopefully the site will come online again soon, meanwhile bitcoins will have risen and no harm done. But what if Intersango has been ‘hacked’ and I’ve lost my funds again? Can I ever trust a third party to hold my bitcoins? Even if they come back online should I trust them? My trust is getting stretched here.

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2 thoughts on “Intersango down

  1. Hi there I am so happy I found your site, I really found you
    by mistake, while I was researching on Yahoo for something else,
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    1. Thanks for commenting. You found quite an old post! Postscript to this post is that MtGox has also failed in time since this was written, further illustrating the point in this post. Personally I don’t hold anything on exchanges. I just don’t trust them.

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