But it does mean, "I've got X value, because we all just agreed to pretend." Whereas cryptocurrency is supposed to mean, "I've got X value, because we all just agreed to pretend, and here's some crypto to back it so we can't cheat." By MtGOX becoming part fiat, I mean that he secretly went from scenario 2 to scenario 1 with a large part of the assets he was entrusted with.