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I don't think bitfinex is "making decisions for the traders". (Ok, it restricts options for the traders, but on the other hand the lenders are more protected). They are just looking at the volatility, which has increased lately, thereby increasing the chance for a big liquidation. It makes sense to me to lower leverage in that scenario.
And yes, there is the insurance pool, but it is always occupied. The rate at which it grows due to interest is way less than the increase in lending amounts that has gone on in the past months.
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There is a bit of a built-in conflict in these two requirements. To be useful in the $60 trillion global economy, the quatloo must be issued in size: there must be enough of it around to grease transactions large and small in all sorts of markets. Using the U.S. dollar as a guide (since the USD is the primary reserve currency), we can estimate that a minimum of $1 trillion in quatloos would be needed to become a practical global currency.
To act as a reserve currency, another trillion or two would be needed, as nations would hold these quatloos as reserves. (Nations hold an estimated $7 trillion in USD reserves, about $3 trillion euros and $1 trillion or so in yen, pounds and other currencies.)
But issuing quatloos in these quantities would remove any scarcity value. Thus the issuer of the quatloo would have to carefully issue more quatloos only when demand justified the need for more monetary "grease" for the global economy. They have no idea how bitcoin works. Lol at they thinking that you must "create" new money to have enough of them, their brain still don't know the concept of "more digits after the decimal point". Lol at the fact that an "issuer" must exists Jezus christ. -10 respect credits for Charles Hugh Smith. And I already lost a lot of respect for zerohedge (a very funny post is this one: http://www.zerohedge.com/news/2013-10-28/all-you-need-know-about-how-broken-social-media-14-bombastic-headlines , compare the headlines in this joke to zerohedges own post titles the past year....) |
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!!!! Subway! 10% discount! Is this real?  You speak russian? |
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It's extremely possible there could be no big crash this time around. All the people selling now expecting a 3rd crash so they can buy back in will be fucked. Most of the last crashes involved some bad news of sorts. Things tend to happen twice in bitcoin, but not a third time. Don't be surprised if all we get are mini crashes on the way up. It's a good way to take coins from the weak hands who don't know what they have.
What bad news happened before 9 April 2013 ? a fair question. well gox getting dosd made a lot of people panic, and if enough people panic a crash becomes unstoppable. BS. Nothing special happened. Is just that after a speculative mania period someone realized a huge chunk of profits, triggering panic sells. This will happen again - over and over and over. Is just that the bottom will be higher and higher and higher. Until BTC finally becomes the world reserve currency or it disappears for good. This |
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It's extremely possible there could be no big crash this time around. All the people selling now expecting a 3rd crash so they can buy back in will be fucked. Most of the last crashes involved some bad news of sorts. Things tend to happen twice in bitcoin, but not a third time. Don't be surprised if all we get are mini crashes on the way up. It's a good way to take coins from the weak hands who don't know what they have.
I think otherwise, if we go up spectacularly, we 'll go down spectacularly (though ending higher probably). |
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Dear Customers
due to the recent market performance we believe a correction is due, sooner or later.
We don't know whether the price will touch 500$ or 1.000$ or even go higher ( we all hope so) before that.
What we know for sure is that the total amount of leveraged positions is getting bigger and bigger.
On one hand we love that, but on the other hand we understand risk and we decided to limit the maximum leverage to 2:1 for the time being.
Only new orders will be effected, leveraged positions already in place will not be subject to any change.
We do that in order to preserve our activity, but also the one of our traders.
Last but not least the big april market crash is only 7 months away and we try to learn from our mistakes.
If the volatility comes down, we will put it back to where it was.
I hope you have all a good trading day
Giancarlo
Bitfinex Team
As a lender, I realize this might decrease demand for loans, thereby potentially lowering interest rates, but I think this is a very sensible move, and I am very happy you are doing this. Keep up the good work bitfinex ! |
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Cool. Are they popular in Germany? |
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This is a very nice development, 5000 restaurants.... |
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I would eat my balls and lead a happy life everafter.
Witnessed  Molecular has created so epic quintuple-spend with his balls already, I suspect that all the transactions will be nullified and he still has them in 2016. Multiple claims on my balls? So what, it's a good thing. Everyone's fractional-reserve banking and re-hypothecating nowaday, no? So why not me? Even so, I would prefer multiple dames . |
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From a somewhat noobish and and amateur..
The -11 crash came after that hacked account right? And bitcoin lost its real virginity
The april -12 came after a serious targeted attack that caused panic again.
Will next real crash (not correction) again come from something going wrong in a technical sense?
The crash at 266 was due. The DDOS was just the trigger. Agreed on this, we had a freaking fork with a guy doublespending $10k (or something like that) during the last bubble runup, when BTC was at 50. If it wants to go higher, a slow exchange site isn't going to stop bitcoin. |
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I haven't figured it out, so the riches are ready to deposit billions of dollars into our several obscure Bitcoin exchanges already? Otherwise what is driving the price higher?
billions of dollars into the exchanges? Definitely not, total market cap isn't even 3 billion. |
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Man, we are ripping today!
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I wonder where we'll be in 5 years.
 And having said this, let us resume the thread and stick to Bitfinex issues.  Agreed, I went a bit off-topic there. |
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people finally finding you can take out a bank loan and deposit cash into bfx? And then some hack, glitch, or mega-selloff happens and you are into debt for the rest of your life? No thanks... bankruptcy? there could be worse things... Enjoy your luxurious villa and yacht, or the dumpsters, whichever it turns out to be. I guess I'll be living my life in a regular house. I don't own any seizable assets other than a motorcycle. anyways, the only loan i took out was a student loan, and the only dollars I put into Bitcoin were the dollars I received from a tuition refund check. I wasn't trying to make this personal, but was rather just trying to make the point that somebody who takes a lot of risk can come out rich or poor. Even if you don't have seizable assets, your paycheck will be withheld if someone is into a lot of debt, no? I don't know how the system works in the US, where I presume you are from. |
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Meanwhile, all the bears that have sell today, first day of the week at $227 hopping for a double top feels good, but tomorrow they will repurchase at a loss...  lol  |
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people finally finding you can take out a bank loan and deposit cash into bfx? And then some hack, glitch, or mega-selloff happens and you are into debt for the rest of your life? No thanks... bankruptcy? there could be worse things... Enjoy your luxurious villa and yacht, or the dumpsters, whichever it turns out to be. I guess I'll be living my life in a regular house. |
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people finally finding you can take out a bank loan and deposit cash into bfx? And then some hack, glitch, or mega-selloff happens and you are into debt for the rest of your life? No thanks... |
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Where did the auto-renew option go?
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Too many members here might haven drugs that push up their fantasy. Please read this: https://bitcointalk.org/index.php?topic=321720.msg3465538#msg3465538And the follow up posts where I did some analysis on the fair market value of BTC. And think about the probable risk that everything takes long time because goverment, finance industry and some other lobbyists will try to destroy Bitcoin. E.g. the US administration can simply put the 144 kBTC into the market - then they will destroy Bitcoin reputation for some time for sure. Haven = have taken? Sure you aren't the guy on drugs? Fair market value: how bout we agree none of us really know. We each have a guess, and we'll see in the future who gets it right. 144 kBTC on the market --> yes please ! (but at a time that I am online) |
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