I noticed there are a lot of really upset people in this thread. Must be because it's monday.
I really doubt anyone would get this upset over a theory, a speculation in a speculation forum. That would be very silly ofcourse.

Ermm, nope maybe you should read the article.

What the hell? How did the (gox) price just jump from 96 to 110???

hell ya back up we go when there 150 in a week you are going to kick your self for not buying now!!!

Hi, yeah but you could just go into the mkt and buy at the market price of the last order? Even without fees.

Hell, we need more leverage up to 10 or 15 max.
The way a standard futures contract usually has in the derivative markets.
With options they go even higher but it's kinda different anyway.

I wish we had proper derivative exchanges futures and options for the masses for bitcoin.
It would be essential for economy stabilizing. They just eliminate or hedge all risk.

https://pay.reddit.com/r/Bitcoin/comments/1f5wah/the_open_source_markets_of_the_bitcoin/

Any BTC trading company that allows its customers to deposit and withdraw fiat money must comply with KYC/AML regulation unless it wants to end like Liberty Reserve, that is in jail and with the customers money lost.
It is not a matter of choice anymore, it's do or die.
But have no fear.
The fact that we know the identity of our customers will still allow us to keep the privacy of the informations we collect and for this Hong Kong is a quite safe place, as privacy is held into great consideration here.
In other words we will not give any information regarding our customers to anyone, no matter what.
That's about all we can do about it.

I hope this helps

Giancarlo
Bitfinex Team

This. Assuming you can find businesses that take them.

This

Obviously people are going to love for Bitcoins to come down, but that's only early adopters. These 'early adopters' are normally looking for a quick rich scheme and are not interested in supporting Bitcoin whatsoever. It's sad actually, I for one want to see Bitcoin strive and succeed. Imagine how awesome it would be going to amazon and checking out with Bitcoin. Yeah, that might not happen but what if it did?

Buy as many bitcoins as you can. Then use those bitcoins to buy ASICMiner shares. Reinvest the dividends in more shares.

DO NOT buy mining equipment. You are not likely to break even at this point. The market is about to become flooded with ASICs and very few people will make any money.

6) After a few days we joined forces (end of March) the price started to raise a lot and it accelerated further to hit 266 on the 9th of April.
With the price grew our concern as we started to fear a crash.
At the beginning of April we therefore put in place an account, under the name of mr Tang ( the Hong Kong insurer mentioned above) in order to start providing insurance for the loans. This account would have the ability to have a liability toward Bitfinex for up to a previously and formally agreed amount.
But we were not quick enough to implement this.
We all recall what happened, make a long story short the price started to collapse and MtGox suspended trading.
As MtGox was our main (and only third party platform at that time, as Bitstamp didn't join in yet) liquidity provider, we were left with a bunch of leveraged positions that needed to be liquidated but couldn't as MtGox was down.
Me and Giancarlo spent long hours on the phone during that night (I will never forget it) and he was really helpful in the situation. He said he and the investors team were going to cover for any losses that this crash would have caused. He said we should not make lenders lose any money and that this move (taking this loss) would have paid back several times in the future.
But there was no time to physically transfer the funds required before Gox resumed operations, so I allowed mr. Tang ( the insurance shareholder I mentioned before whose real name is not mr. Tang by the way, we care about the privacy of our customers) to go 150k in red for a few hours.
All the losses originated that night went into his account and were promptly covered by the shareholders after that.
To put things straight this wasn't representing a risk for the company as Giancarlo gave me his personal word that these 150k would have been transferred the day after AND he personally had liquidity on his personal account in Bitfinex for way more than the above mentioned 150k and this was the collateral of Mr. Tang liabilities.
And so we did, after Gox resumed operations we liquidated the leveraged positions and ended up making a loss of "only" 50,000 usd.
None of our lenders lost one cent, and this was possible only because we had a strong financial backup.
I can't think of a lot of people that would have done the same in our shoes.
For clarity Mr. Tang later provided the funds that are now used to give insurance on the loans of our lenders.
Please notice that we have always been very clear and transparent about what happened during these days, as this announcement published the day after the big crash shows:

https://community.bitfinex.com/conte...-night-Tsunami

As gold becomes increasingly scarce at scale, other assets will be acquired by the wealthy. France just prohibited shipping of precious metals and cash; diamonds are finding use as transport medium because they can pass metal detectors. It's only a matter of time before these and other physically liquid forms of wealth dry up or incur restrictive measures that prevent reliable movement.

To demonstrate my point: how many of the readers for the past 18 months actually earned a 500% return this year?  I'd bet fewer than 1%.  Isn't it ironic?  I post and demonstrate exactly what it takes to successfully trade the markets and 18 months later, most people simply cannot do it.  As the BTC markets mature, these simple strategy may experience a degradation in performance.  Do you have what it takes to innovate and continuously fight to improve your edge?  Do you even have an edge?



My genuine advice to most readers of this thread: allow a professional trader (or investor) with a strong track-record of success to manage your money.

The truth is that there are traders who believe that they have an edge, and there are traders who believe that they need an edge and are consequently looking for one, and there are traders who laugh every time someone mentions an edge, and then make another profitable trade. In other words, there is no such thing as an edge, not over the market, and not over other traders (unless you consider having received good trading instruction as an edge :-) ).

Successful trading is not about being in competition with the market or with other traders, and quite the opposite is actually the case. Successful trading is about being in agreement with the market, and being in agreement with other professional traders (specifically professional traders).