Bitcoin Forum

Strong words, I know

It is painfully obvious that we need to decentralize the exchange if we want bitcoin to survive

we are one well placed STUXNET or drone strike from total disaster

this single point of vulnerability is unacceptable

not to mention the fact that they refuse to keep pace with the currency's hardware and bandwidth needs

BINGO!!!!!!!!!!!!!!!!!!!!!!!

The mtgox sloth cant even handle 1000 connections..

Their equipment is older than apollo 13

We do need Mtgox, but we need other big exchanges as well. And Mtgox needs to get their shit together.
Aaaaand Mtgoxlive is down again. They can't get anything right today =/

i wonder what kind of funds it would take to make a clone of sorts?  perhaps it is feasible to start a donation fund and get one started within this community with all fees from transactions not going towards an owners profit but to be reinvested into hardware.

We need an established forex company to offer trading imo.

Magic The Gathering.

'Nuff said.

The obvious answer is a decentralized exchange. Wasn't somebody working on that, once upon a time?

development is a least of a problem, getting fiat funds in an out - you will have to deal with some regulations and acquire some money transmitting business license

true but i would consider whatever it takes to get those proper licenses in order part of the "funds."  or maybe something could be negotiated with bitinstant.  even if it was only able to handle dwolla transactions id say its a project worth doing.  

BITCOINICA needs some decentralisation badly as well.

Why?

Have you had problems with Bitcoinica before (other than the "no reserve" issue)?

My trades arent being executed even though they are below the price on Gox. Maybe you got your wish and someone stuxnetted it.

so what do you mean by decentralize the exchange?

How do you do that with fiat currency?

Or do you mean have more exchanges that talk to one another?

that would be a good step

ultimately a fully open source decentralized platform on TOR maybe?

If you think mtgox is slow, TOR would be suicide.

You missed his point... the exchanges are the bridge between fiat and bitcoin... try getting a bank to give you an account owned by a decentralized network.

does the exchange have to fill the role of the moneychanger

there is a place for fiat interface for a fee in the market, doesn't mean it needs to be an effective monopoly on trading

none of this shit would have happened if it weren't for your dumbfucks fucking around with bitcoinica.

Some never learn from debt.

Yah I essentially meant this. Mt Gox acts as a bank account to temporary fiat currency, and also as a bank account for temporary BTC currency, and all its members trade shares of each pool with each other.

BTCs are decentralized very difficultly - hashing, competition, mining incentives, etc. To decentralize the exchange, you'd have to create another network for fiat currency. I don't think this is possible, as the system doesn't have control over it's creation like it does BTC.

I don't know if I'm explaining that properly, as my head's hurting from all the emotional rollercoastering today.

Having a network of exchanges that talk to each other might be feasible, but it's also dangerous - if a server has a buffer freeze, then others can't communicate with it anyway. If you have your money on Gox and it freezes like it did, how would your order be sent to the other servers and not be executed twice?


I think I understand what you're saying, but this is a battle against human nature. Why is microsoft so much larger than other pc OS developers? Why is google so much larger than the competitors? why is WoW so much more popular than all the others? It's because of human herding, not quality.

I screenshotted the exploit and people didn't pay it no mind.

fee rollback

THIS.

Once I was seriously considering buying Bitcoins with all my BTC as margin on Bitcoinica at ~3.5, but I decided against it exactly because of this BS. (Though I tested it with a few BTC, I should get them out soon before this shit implodes).

Bitcoin is already a risky enough bet, wanting to leverage it is absolutely insane unless you have extremely high certainty of imminent price movement.

simply more competeting markets should solve the problem as well

Lets all petition for fee rollback for the rest of January. 

+1

we need to away the profit/hassle/legality issues away from the exchange service and transferring it over to any "big player" who wants to make a few % selling special coupons.  there could either be an agreed upon flat rate or it could be a "free market" where people competitively price their transaction fees.  

basically we are moving #bitcoin-otc from IRC -> the web browser, giving non technical people easier access to exchanges.

You are all making it too complicated. All we need is a few exchanges with approx same market share. The traders (arbitrage) will take care of the rest. But the problem is there is no real competition. MtGox is bad, but other exchanges are not any better, or at least not good enough to take large amount of volume from mtgox.

I've tried other exchanges. Most of them look like an afternoon project. Tradehill has some stupid logic with different markets for different currencies. I mean, you don't even have any real volume on the main USD market, and you are going to split that volume into 10 different markets. Smart move, I have to say...

good point.