Bitcoin Forum

...will we get to know what he was really doing?

Nope! ;)

http://www.youtube.com/watch?v=JImcvtJzIK8&feature=related

Smuggling rum

After he validates that he wasn't running a ponzi he will be able to easily find more stable private funding and continue making profits for a less emotional group of people.

At least we will know by monday if it was a ponzi or not, thats enough for me :)

Great! now maybe there will be funding opportunities for real businesses that can't promise such a high return.

If pirate is legit and has some extra coins, he should be buying every single pass through selling under face value.  Of course, this hasn't happened...

Would be the perfect zero risk arbitrage.  Free coins as it were.

Apparently.

You mean shit like REBATE and ZIPCONF? LMAO

Good call.  However, with the volume of BTC Pirate deals with, I'm not sure he'd want to bother with the relative tiny batches being sold below face.

So I estimate the redemptions that caused pirate to close up to be around 30-50k btc..

So he can't come up with 30-50k btc today.

But on Monday he'll have ~500k btc all ready to distribute to the depositors????

Yes and no. Those do appear to be duds but there is always risk of failure in every investment.

There was 100% risk with zipconf because it never worked from the beginning.

He has said it will probably take about 2 weeks to totally unwind.

It's a different target market.  pirate's investors will simply look elsewhere for rapid, high returns.  The HYIPs with all their attendant risk were attractive when BTC price was relatively stable, but now that it's volatile again a lot of people will return to speculating.

Someone just bought 428 TYGRR.BOND-P at 0.9795.  Pirate, is that you?

Bullshit...it shouldn't take more than a week to get all of the investors their btc if he has it.

Otherwise he is short btc and needs to mine it or buy it on the open market.

Or he has it tied up with his clients, like he said.

It would depend what he was using the coins for. Maybe once it unwinds we will find out what he was doing when he sells the book for btc  :D

What does that mean?

Two things you can do with bitcoins........sell them or trade them.

"tied" up? You mean like they bought it from him?

If they are "tied" up with clients then he needs to buy them from them at a higher price than they paid for it. Which means he will be short on USD that they gave him for the bitcoins in the first place.

Ok, first off.. selling is trading.  So you only listed one thing.  Second, there are other things you can do with them.

Like what?

Hoard?

Exchange for fiat?

Exchange for alt-coins?

Shorting, lending, etc

Both still trading......

Shorting is borrowing and selling....

Lending is borrowing and paying interest....

If he was lending or shorting then the BTC would be "tied up" something you professed to find odd, smoothie. If it's lending then recalling his loans would be the tied up period. Shorting, if he was shorting then he has to buy BTC back which is no different then having sold the BTC outright. However if he was acting as the source of BTC for others to short with, then that's a derivative of loaning so the same "tied up" situation as regular lending.

Okay scenario:

Investors give pirate btc

Pirate promises to pay 7% weekly interest.

Pirate gives "clients" btc for USD (lower prices than now)

Clients short btc by selling it on the market hoping to buy it back cheaper to repay pirate.

But since price hasn't gone down in recent months his "clients" will have to buy the btc back at a higher price assuming they sold short.

Now if the "clients" can't buy back Y x 100k btc because they dont have enough fiat..

It's not the "clients" that are going to get the heat for the non-return of investors' btc, but pirate.


Pirate has two options:

1. Buy btc on the market at higher prices

2. Mine them

Both options don't really fair well for him getting all 500k btc in tact by said deadline (week or two, whatever).

**Note: This whole scenario also doesn't really work well in how pirate is able to "make" 7+% each week. Unless his "clients" were dumb enough to pay +7% premium on each bitcoin when buying from pirate, which is retarded lol.

EDIT: That word shorting is another word for selling in the context you used it in. And if that is true that he shorted bitcoins lent to him then he is fucked because he only has two options above.

Not disagreeing with your assessment, just pointing out how BTC could be "tied up". If he has been loaning, regardless of what the loans are for, then he'll be relying on the debtors repaying.

If he was lending to other people whether because they were shorting BTC or some other reason, it's possible they would be paying him a high enough interest to payout the way he has been. Possible but I don't think it likely, myself.

Will be interesting if he disappears with most of the BTC, will people cry all over the forum despite all the warnings given and all the posts saying "don't cry to us if you lose it all"?

If he does run I will be the first to start laughing. :D

And when he doesn't I will.

Simplest answer is the BEST answer: 

ponzi. 

I wouldn't be surprised if some of the closest to pirate get their funds back but not all...that would make things even more interesting.....and I'll still be laughing.


"when"..........yeah keep telling yourself that as if you know the future. At least I use the word "if".