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Bitcoin is like a corporation run directly by shareholders, each shareholder is a node, whose voting power of the network is determined by its hashrate. Since these shareholders are in constant communication with each other, they can make decisions all the time through consensus, and would never feel the need to elect a director.
If the nodes controlling more than 50% of the hashing power decide to force a resolution, they can gain limited power of the rest of the nodes, such as reverse their own spending, they can not, however, reverse other people's spending, or steal other people's bitcoins.
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I have been wrong so far this week. The bears are holding their ground. Every day in $100 reduces the chances to run to $150 this week, so I would be willing to bet 1:1 that we do not reach it. No actual bets though, just my guess.
Mt.Gox is no more representative of the OTC price of bitcoin, if anyone is interested.. Even if Gox hits $150, it is unlikely that OTC will follow.
I don't think the bears have proven anything, it's just the bulls are, for some reasons, reluctant to advance as of now. |
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I can't keep up with the pace of the PM crash!  Oh come on now. It's all right there in the letter. I know I know, it's just breathtaking. I expected it to temporarily stop at a little bit below $1500 and slowly declines, I didn't know the "lights out" is literal. Seems that my baby needs to be born with bitcoin spoon in his/her mouth. |
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I can't keep up with the pace of the PM crash! |
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Hello everyone,
It's not easy to find out who placed this bet, and no, (s)he's not trying to hedge. It's the same person that doesn't get that Bitfinex doesn't work like Bitcoinica.
Those that understand our model, that see that we do not hedge positions one against each other but back them up with lenders funds should'nt be too worried.
The others can withdraw their money if they are not comfortable.
We won't be insolvent by the end of the month nor the end of the year.
Let me know if you have any questions
Raphael
Bitfinex team
Hmmm...so Bitcoinica was actually a bucket shop? I didn't know that. The same person... I have got a candidate..  |
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My rank of priorities of targets to be met by any potential Mt.Gox rival:
1. Security(You can take care of billions of dollars without losing them or running away with them).
2. Security.
3. Sufferable legal system. Let's be real, no one is gonna send millions of dollars to Russia/China etc if it's not possible to realistically sue the exchange when it should be held responsible, Japanese/Polish legal systems, which Gox operates under, in my opinion, are border on sufferable.
4. Legality, financial regulation compliance, other legal affairs, etc.
5. DDOS resistance.
6. Trading engine efficiency.
If you agree with me, you can easily see why Gox is unquestionably still the most dominant, they score a win against any other exchange in every point besides the last, which is unproven, I doubt some of the other exchanges can outperform Gox in trading engine efficiency because they were never given the chance to handle such volume.
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That's a little scary. I hope Bitfinex is ok, the way I see it if the traders are good they are taking money from the exchanges (Gox) and thus it makes sense that it can work, however the crash did lose money for the company (Raph said he covered the lenders with the investors money) However what we do not know is the extent of the damage. They haven't really said much about that. And I still have outstanding loans at 1500% even though apparently the lenders can swap them out for cheaper ones. If so why aren't the traders using my money closing and getting a loan 4 times cheaper? Anyway I am confident that Bitfinex will not close down, The crash really exposed a lot of people though. But lets be honest we were all being greedy. I was making at the peak $200 a day from interest gained! You can't expect a risk free investment that can turn $10,000 into $200 a day. So I am still grateful for Bitfinex and the opportunity they have given us. Guess someone is trying to hedge. |
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One possible answer: a word starts with "s" and ends with "l".
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The premier newspaper in Finland ran a 2-page article on Bitcoin today, without a single fundamental misunderstanding.
See? Your school did better in teaching math then those which educate the so called "American journalists." Now try to be appreciative!  |
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someone needs to delete this post... it is a bald assertion that is false to anyone's knowledge.
i understand we all hate mt gox but accusations like this are serious, and crying wolf on legitimate business just helps real ponzis battle rumors.
Actually this is bad press release. Assertion is secondary. It is, but if you read the statement carefully, you can see many mistakes made. They capitalize the initials of the phrase "panic sell", and use "temporarily" in place where they should use "temporary", I suspect that whoever put that down could be in serious hangover after all that happened that day. Since it's just one single instance I will give them the benefit of doubt, if I see the same thing to happen another 2 or 3 times, I may raise my level of suspicion. |
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As far as I am concerned, when you spell "bitcoin" with the first letter capitalized, you are talking about the currency, the network and community as a whole, not the unit itself, so I would interpret their statement to mean" Bitcoin will not die because of this." But, yeah, it can be misleading. Even if it is the other case, Gox may just tried to be Captain obvious, not Charles Ponzi. Suppose the bitcoin price does not rise again, there are only two remaining scenarios, it goes straight down or flatline, either way Gox can't make money anymore and has to close, so obviously they have to believe the price will rise again.  |
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So from that we can infer Satoshi PC Resources. Those resources allowed him to mine a block with 32 leading zeros every 6 minutes.
The behavior of the chain proves that that much computing power was not being applied to mining in the first year, otherwise the difficulty would have become 1.66 when it couldn't actually sustain 1. I continue to be impressed at how much you insist on the hysterical speculations and conclusions rather that just going and measuring the speed of the old openssl sha256 as I had. Seems that he didn't even dare to respond to your previous comment. |
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2. As a medium of exchange, bitcoin could help Chinese people evade currency controls.
China’s capital controls make it extremely hard for to buy stuff beyond China’s borders—most online stores don’t accept yuan or Chinese payment systems, and there are limits to what they can exchange into foreign currency. As bitcoin markets develop overseas, Chinese bitcoin owners could in theory change it into currencies that sites like PayPal, Amazon, etc., accept. Right now bitcoin (比特币, or bitebi) commands somewhere between 600 and 700 yuan at the time of this writing. Those who wish to trade it can get started on Taobao or Paipai.
I have been saying this for months, finally a westerner gets it. If you are not an oversea Chinese student/worker, you have no idea how many payment requests each of them will receive each year. The problem is on the American/European side, I dare the merchants to accept bitcoins and they will very likely see a surge in purchases. And buying bitcoins has never been a problem for Chinese, we have a very large exchange, and a huge mining population, the supply should be abundant. |
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you have to turn on the smartphone, open Bitcoin Spinner (the most efficient phone app imo), scan a barcode, punch in the amount, click send, then wait perhaps 10 min if they're not using Bitpay. not a huge deal but not as efficient as the card swipe. this ignores, of course, all the underlying cc infrastructure BS that goes on.
I think there is a slight difference here, you cc's convenience is established on your trust of the merchant and the credit card issuer(that they will not overcharge you)
this ignores, of course, all the underlying cc infrastructure BS that goes on.
BS stands for Bullshit. Oops, missed that. |
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^ Great post.
It's interesting how common misconceptions about Bitcoin shape so much of the market sentiment. Though on the other hand I must say I have found the very surest, most foolproof way to make a profit in the markets is to identify a systematic error or misunderstanding people have and trade against it. Misunderstandings take time to clear up and for their resolutions to percolate through to the everyman. During that time, the misconceptions push the price systematically either too high or too low than what it would be otherwise, so there is a *guaranteed* statistical advantage - guaranteed profit over the long term if you make many investments like this.
Right now Bitcoin is overwhelmingly more valuable as a SOV (store of value) than as an MOE (medium of exchange) even though it is arguably the MOE function that gives backing to the SOV function. This is a subtle point most people (on reddit, for example) aren't able to get, even if they've been in Bitcoin as "true believers" for a long time.
That misunderstanding is a lead weight on the price, and the post-Cyprus surge - resulting in more thought of Bitcoin as a SOV - is evidence of that. This will eventually become the conventional wisdom and by then that lead weight will be fully lifted, with much higher BTC valuations just from that one dispelled misunderstanding alone. Easy money!
Of course there are many many more misunderstandings and confusions and general ignorance that weigh down the price, and that is why this is still around the ground floor of the digital goldrush.
i was just explaining to my 18 yo how great an investment Bitcoin is b/c its so hard to figure out. watching all these TV pundits struggle with the underlying concepts represents a huge opportunity to make money if one can wrap their head around exactly what Bitcoin is and what it represents. this type of knowledge asymmetry exists everywhere in the traditional investment world but thru manipulated opacity. with Bitcoin, if you're smart enough and put in the time, everyone has a chance to be successful. Time for the Americans to improve their ridiculously inadequate math education. |
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you have to turn on the smartphone, open Bitcoin Spinner (the most efficient phone app imo), scan a barcode, punch in the amount, click send, then wait perhaps 10 min if they're not using Bitpay. not a huge deal but not as efficient as the card swipe. this ignores, of course, all the underlying cc infrastructure BS that goes on.
I think there is a slight difference here, you cc's convenience is established on your trust of the merchant and the credit card issuer(that they will not overcharge you) |
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Bump |
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For those of you who think you can game the system and the market by buying low and selling high, I will reiterate what Cypherdoc has said previously...the risk of selling to buy back in lower and have the market run away from you is too great.
I beg to differ a bit here--I personally don't sell at the dip, but whenever the price increases by a certain percentage, only a small percentage of my holding of course, something like 5%-10%. And it turns out that, bears never disappointed me one time, they always handed back their coins to me cheaper than I sold. But I don't think this is going to work for quite a while--seeing how they fire sale nearly 1 million bitcoins at ridiculously low prices I think their wallets will remain empty for some time. You clearly are not who I was referring to. I am talking about those who sell out of coins. Ah right, then let's just say I tried to explain why those who thought they can game the system got no chance(seeing that you actually want to make a serious post this time  ): there are many guys even more aggressive than me waiting for their coins--what happened yesterday. |
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