Bitcoin Forum

As per the coindesk report (http://www.coindesk.com/predicting-bitcoins-next-price-rise/)


Is this real? and why?

They are probably selling on localbitcoins to people who don't want to go through the hassle of registering with an exchange and all the associated AML/KYC stuff.
Whether those people want to stay anonymous because of shady business or because of a valid desire for privacy cannot easily be determined.
The other possibility is of course that the end customers don't really know what a fair bitcoin price is at the moment and accept whatever price the trader demands...

Onkel Paul

profiteering on bitcoin is the new way to make money for a few or I can say many, everyone is trading, they also could be traders as well pumping the exchanges also.

According to the information (http://8btc.com/thread-6707-1-1.html) disclosed on OKCOIN's Beijing Meetup,  cost for farming 1 bitcoin ranged from 2500 to 3000 CNY.
Another news is that Rockminer is spreading the news (http://8btc.com/thread-7624-1-1.html) to transfer his 975m2 mining farm.
Here (http://8btc.com/thread-7370-1-1.html) is another ad to sell mining farm.

If the farm owners are trustworthy, the kubi (Chinese pinyin: meaning working hard and underpaid) miners are dumping their coins much lower than their cost. And more and more mining farm are shutting down.

the op's research is correct

the reason is not anonymity. the reason is that if you link your bank account to an exchange and want to send over $10k, be prepared to have delays, arguments with exchanges, and your bank looking into your account, even freezing/closing accounts.

anyone wanting more that 25 bitcoins no longer trades via exchanges, they do it privately through circle/localbitcoins/bitcoinotc etc..

and yes that is legitimate people.. not just the shady ones.
AMLKYC is killing the basement dweller PHP coded exchanges, and even i have stopped valuing bitcoin at their crappy sub $500 price points. they are all going the way of mtgox, (well without the theft side) with the closing of accounts/lack of funds side.

think about it logically.. when you see btc-e for instance, should you really be basing all 13million coins based on movements of less than 500 coins every 30minutes (12k a day)

where by just 200 coins can change the value of 13million coins from $5BILLION to $6BILLION..
its time we smarten up and realise that AMLKYC is causing the gates to close on the small exchanges and we should be valuing bitcoin on the other places where the real trade is happening

It is not real. Only an ignorant or desperate person would pay a 50% markup. It can't be normal business as he claims.


My guess is that he is setting up a ponzi scheme, guaranteeing something like 8%-10% return per day, and the article is free advertising.

I disagree. Traders often build relationships with their clients. Certain people get used to you and are willing to pay a premium, especially if they have a lot of money to throw around and don't particularly care.

I know for a fact that I could buy 20 BTC and then sell them @ 500+ in exchange for moneypaks and vanillas on localbitcoin. Sure it would be a pain in the ass taking all those reloads, but the profits are good.

It does not surprise me that some rich guy would pay $560 per coin in exchange for a quick and easy transaction with an individual that they trust and are used to dealing with.

Trading BTC is extremely lucrative. And the demand is very, very  high.

There are a lot of people who do it and some of them are definitely making 6-figure incomes. It's a good way to make a living. The question is though, how long will it last before being regulated into oblivion.

This is a possible reason but I don't think people would be wiling to pay these high of margins on bitcoin transactions just for a little bit of financial privacy. The spread that is mentioned in the OP is worth tens of thousands of dollars. Not only that but someone paying this spread could have simply avoided paying the spread by waiting a few hours by posting an offer to buy/sell on LBC.

I think a good part of the reason this is happening is because people are not informed as to what the "true" market price of bitcoin is. On LBC for example it will only display prices to buy if you are buying and only display prices to sell if you are selling. This results in it not being as clear as it should be as to how good of a deal you are getting

Coinbase is all over the news. If people still can't figure out where to source bitcoin cheapest, they should not get themselves involved.

So you're saying that they're willing to pay around 50% :o mark   up just to avoid KYC laws?? This doesn't sound economically sound(or even sane).

Well, it's possible they're willing to pay that markup as we're nearing a bottom w/ a potential rally coming down the line. They get coins shipped to an anonymous address that isn't tied to them and then they can sit back and wait for the rally and lbc when the timing is right, or something similar. And, then not pay taxes.

Sure, but even if that's the case wouldn't it still be better to buy cheaply from the exchanges?Or do these people sell at even higher mark up from those rally prices( even at ATH ??? :o ),it is even worse if the rally turned out to be another bubble and they're just passing hot potaturd for profit.Ether way this seem risky  in addition to being shady as fuck.

Read.  Think.  Act.

The buyers have left the small exchanges.  It has been said multiple times already.  You and me buying 1 BTC here and there are nothing.  Enjoy the cheap coins!

Yes when the price first starting falling off the 500 mark i had got excited and wanted to come try and buy some at or maybe even a little below the market value since I figured they would continue to fall for a little bit more, what i found was the only way to stay anonoymous in the true Bitcoin fashion was to pay 150-200% market value for the coin.... so i figured hmm maybe i should try and sell some, no buyers.... dont knkow who pays for over this market value but i know I will not pay over market value and i will not realease my anonymity to get the coins at market value.... To all in the BTC community please be fair to all other citizens of the BTC world...

its not about avoiding kyc laws... its about avoiding crappy exchanges red-tape interpretations of how to impliment flagging and reporting people who want to legitimately send over $10k in and out of bitcoin. not the law itself

for one moment. fiip your mindset

what im saying is that php exchanges are crashing below $500 and going below $400 because its hard to get money in and out of php exchanges, without your banks freezing your account bcause your trading over $10k.

so while php exchanges crash, just like mtgox did when people couldnt get money in and out instantly in january/february.. other smarter people were trading at higher prices elsewhere, where true volume and value lay.

whales do not base bitcoins price or the market cap on places like btc-e that is only playing around with dust amounts and a 200 coin wall. with a 12k daily volume..

it is insane to judge bitcoins total circulation of 13million coins based on btc-e's price where 200 coins... yes 200 coins cam make the maket move from $5billion to $6billion..

so wake up and stop sheep following those crappy exchanges and realise the true value never dropped below $500. just like when people sheep followed mtgox before they realised where better value indicators lay.. thus allowing mtgox to continue to die down to $100 whilst everyone else traded at the $450 resistance point of february(from mtgox's high of $650 in january)

Frankly my  dear, I don't give a damn the what ever speculative price these people want to assign their bitcoin.I just find it buying at premium prices to be ridiculous when cheaper alternatives are available.

It's nice to see that at least some people in the comments stay sane and see through this bullshit. The massive shilling has become unbearable since bitcoin has decided to trod the road to zero. "Hurr durr, buy some worthless bitcoins, you can sell them for double to some even bigger idiot..." Seems like some "early adopters" are actually pissing their pants at the moment because they truly believed we would never see 300 when we were at 800.

Sure. If tons of people had problems withdrawing money we would surely hear about that one way or another. But all the exchanges are actually quoting the wrong, low price. real value of bitcoin is 900, amirite??? lmfao

if you had any money, you would surely know what it takes to move it.  real value is what you can get for it.

Circle is really changing the game and this article makes no mention of how Circle's presence will help skyrocket the price of BTC.

Actually, I think circle will go broke first due to credit card charges back and fraud.