Bitcoin Forum

A few days ago I submitted my documents and I was #13000.  Now I am about #10000.

Is this your queue number?  :o

You've got to wait for 10K validations infront of you before you can use your account?

I just helped someone setup their account about 12 hours ago and I think it said they were 15,000+ on the queue.  Right now they're at 14840:

https://i.imgur.com/UeaqkgG.png

Can one of you guys shed some light on what's required for a validation?

I'm just curious what takes so long if they have a team of people working on this. Again I seem to remember reading something like a team of 20ish people validating accounts.

My account randomly got flagged just a few days ago for no apparent reason, so now I've got to wait to be verified before I can withdraw any bitcoins or do anything except trade. Fun. Anyway, when I first got into the queue my number was precisely 14500, as I recall, though I don't have a screenshot.

Sounds like MtGox was in fact running fractional reserve, their safety margins are running out and so they're using this new technique to limit outflows.

Pretty bad in a Stock Generation sort of way.

They don't have the Bitcoin or the fiat?

They don't have the Bitcoin or the fiat?

I wasn't around during the Bitcoinica fiasco so don't really know the details of how they operated their liquidity. I only know that they were hacked and lost a great deal of Bitcoin.

Just curious as to why liquidity needs to come from Mt.Gox and not from the market?

Isn't it the act of buying/selling from users the source of liquidity?

Mt.Gox isn't a market maker is it?

I wasn't around during the Bitcoinica fiasco so don't really know the details of how they operated their liquidity. I only know that they were hacked and lost a great deal of Bitcoin.

From: Zhou Tong <>
Date: Thu, May 3, 2012 at 5:54 AM
Subject: Re: I want to deposit money on Bitcoinica
To: Tihan Seale <>
Cc: Donald Norman <>, "
<>, "
<was send to wrong email of mine, so donald is cc'ing me back in>
 
 
 Hi,
 
I'll look into the problem too. To my surprise (and maybe yours), it seems
that we bought some Bitcoins at too high prices. This might be an
explanation for the drop in equity for recent week.
 
I'll take these actions to try to rectify the problems:
 
- Increase the confidence level to 2500. Since the increase in guaranteed
liquidity, our percentage hedge has increased a lot. It makes sense to
"play big" since the market is more mature and much less volatile. We can
always revise this decision if anything changes.
 
- I don't really want to increase the spread, but I can keep adjusting it
based on my observations. If you permit, I will adjust between the range of
1.003 to 1.008. If our Mt. Gox fee is 0.25%, we can at least "break even"
with such settings.
 
We actually made a lot of money from position liquidations (except for the
huge and forced ones), because they often take place at relatively
unfavourable prices for the trading range. We have a huge open interest
right now (about 180K BTC for both sides) so our potential profit is high.
The biggest problem right now is that the market doesn't move. We did make
some profits when the price rose to $5.5 last time, but we lost them again
due to the bad investment decision.
 
Also, I propose a new feature to increase our revenue:
 
- Secured loans. We don't have to "settle" for our customers. We can allow
them to settle themselves at the prices they like. However, we are going to
charge the Sell interest when they have negative balances. A
forced-settlement system will be implemented instead.
 
They can borrow USD against their BTC balance, and vice versa. We may
require 200% mortgage (borrow up to $1 against $2 worth of BTC), and a
default reserve of 10% (if I borrowed $100 against 40 BTC at BTC/USD=5, the
default rate will be BTC/USD = 100 * 1.1 / 40 = 2.75).
 
The benefit of this system is to make the money flow faster within the
Bitcoin economy and we can rely on Mt. Gox less. It's like the bank's
overdraft facility that charges insane interests. But Bitcoin needs this.
 
Lastly, I have lowered the spread for the Exchange feature in a previous
git commit. The next thing I'm going to do is to limit the number of
exchange transactions each minute to prevent abuse, and then make the
spread more reflective of actual market liquidity. Then, we can offer the
Exchange feature to the mass audience because they can pay less to exchange
money on Bitcoinica. Exchange transactions will move the "surplus". They
are always some nice small market orders that generate profits for us.
 
Summary: strategies to make more profits:
 
- Less hedge.
- Faster money flow.
- More volume.
- More trades within the boundary (surplus is between -confidence_level to
+confidence_level).
- More open interest and more deposits (the interest differentials can
generate $1000+ revenue every month currently).
 
I can make a living without the salary, so skipping a few months before
resolving the problem completely isn't really the problem. Anyway, I'll try
to squeeze some time to implement these changes as soon as possible.
 
PS. I've traded almost A$20,000 with BitPiggy now. (And if it's
unprofitable for them, they shouldn't continue dealing with me.) They're
legit and what they are doing is viable. BitPiggy has much more starfish
than us, but this makes them look legit.
 
 
Best Regards,
Zhou Tong

MPOE-PR appears to be doing something known as "unfounded accusations and trolling". I advise you disregard them, their Ignore button is gold for a reason.

People have a year+ history of claiming this about what I say, only to be humiliated a few months later. But it's okay, because by then their mistaken assumptions and hardheadedness has already cost them all their BTC, and so they can disappear into the void, leaving room for a new generation of idiots to repeat the same mistakes.

Read my old posts, it will make you much smarter.

MPOE-PR appears to be doing something known as "unfounded accusations and trolling". I advise you disregard them, their Ignore button is gold for a reason.

I'd never noticed some people have gold Ignore buttons.

What's the criteria for your link to be 'golden'ed?

I invite you to back up your claims against Mt. Gox. Certainly what you say is possible, but anything's possible.

What's the criteria for your link to be 'golden'ed?

I guess this means it's likely that the price is going to continue to rise although some will be:

1) signing up and abandoning the account
2) opening an account to sell their bitcoins
3) waiting for the price to drop before buying

so don't expect every new account to be buying.

So far Tux does the lie-and-run (https://bitcointalk.org/index.php?topic=162481.msg1710496#msg1710496) thing, so you're setting an impossible goalpost. With a (provenly) dishonest operator, the only thing left is circumstantial evidence, unless someone hacks it again.


Pissing off a coupla dozen idiots.

@Inedible: this thread is a very good idea.

If you could post every time there is an update so everybody is notified it would be nice.

...some exchange wanted to keep flow going and kept issuing BTC to people like the Winklevoss' that were withdrawing and the market kept going up at an incredible pace (and now the exchange is short BTC)...

I don't understand. How can you issue BTC you don't have?

YOU CANNOT.    Unless, you use the numbers from the "deposits" (which ARE NOT yours to use)   When someone deposits, the money goes into the exchange (it should be segregated but in the failures of exchanges it does not seem to have been (even corzine was not doing seg properly).   If you were doing this, you are basically "borrowing" others money and using it to short to make the commission to keep the flow going).

That can't be legal.

Well I'm glad to see at least some people have the sense to follow what has been going on here. Yeah, MtGox didn't "stop trade" back when BTC went up 150% in two days. They did however as the price was falling and they needed a little time to beg, borrow and steal enough to be able to settle their gaping short position. Hurr durr.

Yes, it's circumstantial evidence, and yes they are idiots. Nevertheless, never attribute to plain stupidity that which also could be explained by malice. You'll live longer that way.

PS: She.

Really?   how naive are you?   Mt Gox is following the money laundering laws but name the organization that is regulating how they conduct business?   You are complete fools if you leave deposits there.   The winklevoss' did not not (and they are spoiled idiots) and yet you do?

Anyone can make a bold claim.

Can you back it up with evidence?

Well I'm glad to see at least some people have the sense to follow what has been going on here. Yeah, MtGox didn't "stop trade" back when BTC went up 150% in two days. They did however as the price was falling and they needed a little time to beg, borrow and steal enough to be able to settle their gaping short position. Hurr durr.

Yes, it's circumstantial evidence, and yes they are idiots. Nevertheless, never attribute to plain stupidity that which also could be explained by malice. You'll live longer that way.

PS: She.

What is a bold claim?   That the winkelvoss' did not leave money on the exchange?   Read their quote yourself hero. 

It's a bold claim you're making of Mt. Gox. And what's with the name calling or are you just being over familiar?

Really?   how naive are you?   Mt Gox is following the money laundering laws but name the organization that is regulating how they conduct business?   You are complete fools if you leave deposits there.   The winklevoss' did not not (and they are spoiled idiots) and yet you do?

Any updates on the queue numbers?

You're saying Mt. Gox does this.

Yes, they claim to restrict deposits and withdraws because they are following money laundering laws.   SEND ME THE URL WHERE THEY CITE WHO IS OVERSEEING THAT THEY SEGREGATE FUNDS?
Try learning to read, you are starting to piss me off.

Seems like you have anger issues.

You're asking someone to prove a negative. It's not possible.

This isn't evidence they're doing anything wrong.

I'm not saying they're not doing anything wrong. You're making the claim - you need to back that up.

learn to read and READ the whole string.   I am not saying anything of the sort.   I answered a question from someone who claims they COULD NOT do something which they CAN DO.   Then someone said it would be ILLEGAL.   IT IS NOT as they do not have ANYONE governing what they do in regards to seg.
Get it?   Read the first time and stop projecting.   You are a fool.

Ok, so you're a bit volatile so I'll be brief.

There was no question about whether Mt.Gox can do this or not.

I said it would be illegal for them to do this as they're taking other people's funds to pay other parties. They're still liable for the Bitcoins even if the whole thing tanks. This activity would be no different if Mt. Gox took the Bitcoin themselves and spent it on fast cars or loose women.

Just because an activity has no oversight doesn't make it legal.

I can only assume your first language isn't English as your posts are really difficult to follow... or maybe it's just me and my comprehension skills aren't what they used to be.

Regardless, you need to make your point with a little less anger. I'm sorry for whatever is going on in your life right now that's making you this unhappy but really, taking it out on strangers on a forum isn't going to help at all.

Good luck.

Does nobody have an update on their queue position?

Just keep opening accounts under false names and sending in bogus docs.  ;D

Documents sent last friday afternoon (2013-04-26 ~14:00 UTC): position in the queue= 16720
This morning (2013-04-29 08:00 UTC)  : 13760