If I were you, I'd teach them as young as possible about debt and how interest applies to it as well.
I was in a bank and this teenager was there with his parents. One of the bank ladies was pushing him to get a credit card or debit card (ever since the bank became Wells Fargo they have been pushing credit cards hard). He said he just uses cash. She talked about how he could lose his cash or it could get stolen and if it was a credit card the bank would be able to get his money back if it was stolen. Pretty sad really...like tobacco sales marketing towards kids. I have been conscious of teaching the "principal" of saving or deferred consumption as opposed to saving. 3rd graders if introduced to money, see $10 as $10, (the concept of inflation is complicated) earning interest is viewed as getting money for nothing, and implies success. While maintaining value relative to inflation is what makes for an effective saver. - Ironically I don't know how to do that in the current economic climate. Teaching the kids the implications of going into debt and paying interest I think is a valuable start. Debt was a simple lesson for me. From a young age, I was taught: 1. debt is bad (being in the minus/red... or below $0) 2. if you can't afford something, don't buy it Those are two very simple lessons that can be taught. Even if a kid does not understand what it means, get them to remember it and they will be set for life. A simple lesson in interest: I remember seeing an example on a childrens TV show that taught pre-schoolers about numbers. The two scenarios they had were to gain more sweets. This was a game between two children. Child 1. They told him that he could take 1 sweet and for each turn take 10 sweets more then the last turn. On his second go he would have 10+1 sweets, on his third, 20+11, on his fourth, 30+31 Child 2. They told her that she could take 1 sweet and for each turn, take twice the number of sweets as her last go. Then on her next turn take 2 sweets, next turn take 4, then take 8, then take 16. The rest of the children were then asked which child would end up with more sweets if they took one go at a time at taking sweets. Child 1, looks like he's benefiting more, however Child 2 will ultimately end up with more sweets. Lesson 1: Child 1 will be able to reap the benefits of being smart and saving. Lesson 2: Child 2 will show the benefits of what it is like to understand 200% interest and compounding at the same time. |
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Who's behind it?
Our team consists of seasoned traders with experience in some of the worlds most successful banks, investment banks and accounting firms.
Surely. And Justin Timberlake. Why not be honest and say "Hi, I'm yet another kid around college age with some basic understanding of php and mysql and I've figured I'd cut my teeth on really dangerous stuff because I'm retarded like that" so we could just tell you to go code an MMORPG instead? What you're doing is a little like going to the doctor with nausea and vertigo but trying to pretend you're there for a broken leg. LMAO You whine too much MP. Who gives a shit? Let them do their thing while you do your (shitty) thing (that barely anyone uses anymore). LOL. Most of assets on BTCT and Bitfunder worth investing in are just pass-throughs to assets on MPEx, which apparently "barely anyone uses anymore". I respect anyone with the guts to go out there and set up a bitcoin business. The bitcoin economy needs it, and after all, we all want to see it succeed. I'm not interested in starting flame wars with anyone, even if you are a competitor. I'd appreciate it if feedback was at least a little constructive. |
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Where are you getting your price-feed from?
Market orders are placed on MtGox, our prices are based on current bid/ask prices and are adjusted for estimated order fill price. For smaller orders, we tend to see our orders execute better then the displayed priced. For larger orders, it is close to display price, sometimes worse. This depends on market liquidity. |
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Is arbitrage still profitable? and how has your experience been so far running this?
I ran an arb bot for a long time and it was very profitable. I stopped it to pursue more profitable ventures, i monitor the prices a lot still (out of habit) and see a lot of arb opportunities. Good luck to those running the script. The more arbitrage there is, the more efficient the market will become. Thank you for pointing that out! Since exchanges are not internally arbitrating and there is no open cooperation to create an inter-exchange arbitration system the markets have strange gaps in prices and exchange rates. In an ideal system the prices and rates would automatically even out over all of the exchanges (which could also reduce BTC's price correlation to gox uptime). Thats the whole idea of people running arb bots, as well as giving them profits, it helps normalise the prices across each exchange. At the moment MtGox still leads price movements. As for internal arb, an exchange trading on its own books isn't good practise and is a severe conflict of interest as they would easily have the capability to both under cut everyone and perform 'front running'. |
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I bought a lot of USD when AUD was strong against it.... then I used it to buy BTC too!  For anyone in Sydney, check out the bitcoin sydney group, they're organising a meetup soon. Where can I find details on the Sydney bitcoin group? Post on there to register your interest. The meetup will be in a few weeks time. There has been a lot of interest so spread the word. |
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P.s. Send me a bitcoin address. To show some appreciation for your time and suggestions I'll be sending over 0.1btc.
Still waiting... some ppl follow their obligations and responsibilities easier than others. (its not even about the money if you dont get it) Apologies for the delay, the site's growth has been keeping me busy. 0.1btc has been sent and is rightly yours kakobrekla. I've been spending the last few weeks getting some valuable advice from some accelerator/seed funds based out in California and journalists from all over. All I can say is watch this space. In the first two weeks of private beta our users placed $250,000 of trades. The growth has been incredibly encouraging. We are rapidly approaching our next milestone of $1/2 mill in trades. Keep your suggestions coming. In the mean time, I'll be working on some new features and adding to some new financial products which I am really excited about. |
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Yes, it is very risky and we should all manage our financial risks accordingly.
All professional traders and money managers will know about the diversification and hedging of risk. The same applies to any 'investment' in bitcoin. I treat it no differently as I would my stocks and shares portfolio. I try to have as balanced a portfolio as possible with comfortable controlled risks in the areas which I want. I do this by being slightly overweight in a certain asset class.
Good money managers will allocate a proportion of their funds in 'safe havens' such as bonds (low risk, low interest but safe) and a proportion of their funds to high risk high return investments... such as bitcoin.
This was my approach and an original investment of 5% of my entire portfolio in bitcoin soon became 90% of my portfolio. I've diversified after the spike but I've maintained a healthy proportion of my investments in non-bitcoin related securities.
TL;DR, be smart about it, manage your risks and most importantly don't be greedy
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Good on you, as a generation, we need to educate our younger peers the lessons of good personal financial management. If I were you, I'd teach them as young as possible about debt and how interest applies to it as well. Then teach them compounding and watch them become the next Warren Buffet.  |
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Is arbitrage still profitable? and how has your experience been so far running this?
I ran an arb bot for a long time and it was very profitable. I stopped it to pursue more profitable ventures, i monitor the prices a lot still (out of habit) and see a lot of arb opportunities. Good luck to those running the script. The more arbitrage there is, the more efficient the market will become. |
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I bought a lot of USD when AUD was strong against it.... then I used it to buy BTC too! For anyone in Sydney, check out the bitcoin sydney group, they're organising a meetup soon. |
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Is it possible for china to block all bitcoin traffic?
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If a bet is correct, where does the money come from? Your reserve? Do you place any orders out to market?
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This is the calm before the storm. The price WILL move as soon as a trend forms and it'll kick off a swing. Trade carefully!
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Oh, and as for books, yes I would suggest you start reading as many trading books as you can... not just to learn the technical details about trading, but to learn the attitudes of the most successful traders.
Look up the following books/authors:
-Reminiscences of a stock operator
-Stock market wizard (theres 3 or 4 of these, all are good)
-Nassim Taleeb
-A handful of the new age social economic books out there (great lessons in the basics of supply and demand) i.e. Malcolm Gladwell, Freakonimcs etc...
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I can't say my style is based off technicals anymore. I have been watching the charts every single day since the middle of 2011. I notice patterns. I read the forums and get a general sense of how the community feels. Then I wait for a bit of volatility and place trades and the high and low points I think it will hit. Almost every time I gain BTC or USD (depending on what I want to hold/be long on at the time). It may only be 2%, or it could be 20%. Again, I just watch the charts for countless hours and look for patterns. I don't look at any other market, I just focus on Bitcoin/USD so my judgement isn't clouded, as the other markets in the "real world" don't have the same patterns or traders.
Agreed with phorensic, there is definately a pattern to the market. I personally have traded massive volume on the bitcoin markets with great success. My advice as well as what is written above? Be careful and do not get complacent. It is very easy to get lost in all of the hype and FUD that is constantly thrown around on these forums especially. Good luck and stay safe. If you do not have a huge appetite for risk then I would strongly suggest you just hold onto what you have. |
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Are there websites out there showing trading volume in china? What's the largest broker out there?
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Just wait for the next hype cycle to swing around again. Given that we just had one (popped by MtGox becoming a 'victim of its own success') it'll be a little while. Having said that, there are a LOT of bullish traders on btc.sx at the moment.
My prediction? We'll see a flat market for a little while and then a rapid succession of price rallys.
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This is the fair market value most often defined not only by trade volume, but how much it costs to get the USD in to your broker's account too. MtGox afaik is one of the cheapest to pay into which is why its trade prices are more expensive. Its common knowledge that btc-e is very expensive to pay into and withdraw from which is why they are always slightly cheaper.
There is potential for a lot of arbitrage for anyone who's up for it.
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I'm currently in talks with a handful of VC's and wouldn't mind more advice when it comes to seeking help to accelerate the growth of my new service.
I'd need something more than a casual commitment of advice though so maybe I'd be better talking to the more established funds?
What are your goals besides discussion?
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This paper will not be accessible to you if you aren't familiar with formal mathematics and computational complexity theory.
TL;DR: Either economists are wrong about their efficient market hypothesis, or computers have a shitload of computational ability that computer scientists just haven't been clever enough to exploit yet.
As long i can still gits my DrUgZez with them ther bzitk01nz, sall good dawg. Word Way to represent the community  . Lol, i totally don't get this at all. |
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