Still hypothetically,  I hope the bitcoin community has considered the very real danger posed by an individual in control of 500K of BTC. Sure there are accounts with balances almost as high but what is to prevent Pirate or anyone else with so much BTC from cyclically crashing the market and buying up more coins? Other competitors in a market prevent players from consistently out-performing the market. Sure, when you have the most funds you have the biggest advantage, like the having the most chips at a poker table. But how do you know you have the most funds? If you sell intending to buy cheaper, you're betting that there's no well-funded buyer at that price. You could be wrong, and be selling to a better-funded accumulator(s), who will only sell back to you at a higher price. That's how people lose to the market. Anyone trying to outperform the market can (and will) lose eventually, especially if its growing. (in a shrinking market its easier to continue winning, but the gains shrink until you're the only player). For bitcoin's sake- I hope Pirate Returns the money, and the community stays away from such "financial innovation" in the future, even if it's not a ponzi.
For bitcoin's sake - I hope he does not make the payouts. If he does, then he was such a fantastic trader I'll eat my hat (I discount the possibility of gains from money laundering or any other non-trading activity). If he does, the scourge of (actual) imitation ponzis which would follow would be utter chaos. btw, where's the confirmation that he controls 500k BTC? |
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Where's the best list of lenders waiting for payment? Step forward.
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I'll take this bet, even though I find the conditions uncomfortably vague and fuzzy (the most reliable list of outstanding payments is a rumored hashed accounting record possessed by neofutur). If in three weeks you believe you won on foggy, unsubstantiated claims (e.g. by my standards, the blockchain must be used to discount a pirate sockpuppet conspiracy. you might have different standards), I want a magazine subscription for three years.  100 BTC 1ADEPf7M8NifTU6x9eHEDWvNHrJNT5urnj rating != trust |
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Hard to say. LR charged enough fees to warrant them continuing operation vs trying to steal the money. Why would you steal all the money and risk jail etc when all you would have to do is wait 100 days for the same amount to come in fees.
Something else is going on.... a hack..... government intervention..... who knows??
I think you're overestimating their income on fees. Its not a trading platform like MtGox, so they don't have the same large transaction volume which generates big income from fees. If they took by fractional accounting more than they've earned on fees, they wouldn't turn around and give back those "profits" when the net-flow turned negative. Especially when it was a shady offshore corporation from the get-go, by a couple of russians probably already sitting safe in Russia from Costa Rican law enforcement. They've had downtime for maintenance before. But I don't believe users have seen reports before of big accounts of $10ks-$100ks being locked down. At this point, the scare is in place and the run will be self-sulfilling if they come back online. Thinking about it, I'd be very surprised to see them come back online and unlock those big accounts. |
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The people on reddit who are claiming 4k was stolen are all sockpuppets smearing FUD. It looks to me like the other Kronos guys who share responsibility for being hacked are trying to push all of the blame onto Alberto to make themselves look less guilty.
Im starting to agree with this. The linked pastie and JRO's post confirms thousands of BTC were stolen from Kronos' mtgox account (nowhere clearly stated exactly how much). Charlie of BitInstant confirms that Alberto is jjfarren aka bitscalper, an estimated 1000 BTC scam. Not even surprised. Expect anything from this site.
They claim to hedge trades on instaforex, but that's a lie since instaforex doesn't provide an API for their customers. Its a crude bucket shop.
Take it lightly, as said, we're in beta and some issues are still being worked out, moreover we're adding bitcoin margin trading to the offer, with realtime hedging on mtgox. As per Instaforex, they do provide an API, and it's used for gold quotes, for actual hedging we use a custom tool developed to work with our preferred trading platform. I don't believe that bitdaytrade hedged any gold trades, maybe Alberto did some manually but certainly not automatically. I don't think he has the skill to create a "custom tool" that actually hedges gold trades (he claimed to use Instaforex, then backpedaled and claimed trades are hedged on a "preferred trading platform"). Who knows whether bitcoin trades are hedged on mtgox. I suspect that Alberto creates crude (buggy and insecure) front-end scam-sites, which don't function as advertised. If anyone who has the bitscalper code (from here MiningBuddy, Chaang Noi (Goat), teek) will share it with me, I'd like to take a look at its arbitrage capabilities. Even though MNW said that Alberto had someone else write the bitscalper arbitrage bot (who?), to whatever extent it had one. (I'm late to the bitscalper threads, didn't follow them at the time). |
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Thanks, Matt
(Gox did have a never-before-seen issue today)
Care to elaborate on this never-before-seen mtgox issue? something with their websockets feed? |
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I sense the history of e-gold repeating. Perhaps there has been a government raid or demands recently imposed upon liberty reserve? I see no other reason for them to suddenly start blocking accounts, going overdue in maintenance mode, acting unreliable and basically ruining their own business? Will be interesting to see this unfold, I am afraid we might see the death of LR. There is lots of business going on in LR that will need to find a new home. Shame to lose another good payment processor, but hey, maybe bitcoin can take its place?
It wouldn't surprise me if we just saw the last breath of LR. There was always the suspicion that it was a fractional operation. That the operators doubled as exchangers able to give themselves unlimited LR dollars, which they sold for Western Union payments or whatever. Such a scheme would collapse if the net-flow turned negative (like a ponzi). The timing here is very suspicious, coming right after a peak in BTC price. That suggests other e-currencies were chasing BTC, a run which may have broken the LR bank. |
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Good calls waveaddict. Will be very interesting to see what happens from here. My prediction is we see a dip to $4-$7 with a rebound to $9, back to $7.50, then $10......or all hell breaks loose and pirate crashes the price to $0.01  This was the pirate crash. It really doesnt matter now whether pirate depositors get their money back on monday or friday or never. At least that episode is over.. |
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Good calls waveaddict. Will be very interesting to see what happens from here. |
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No matter who started it (that piratesomething), and why, but we're facing the end of Bitcoin. I see no way that this crash would stop. It'll go down, below 1$ and no-one will have any interest on mining, or using Bitcoins anymore. So I want to thank you all for these years, we had a good run, but maybe the world was not ready for this yet. Later we can find out what went wrong and maybe some day try again. Thank you, horgh is out.
It won't end just like that. In summer of 2013 the price will rally all the way back up to $7.50 or so and then crash. In 2014 the price will rally all the way back to $3.75 and then crash. 2015 will see a strong rally back to $1.87 followed by a crash and a healthy 2016 rally back to $0.93. In 2017 LTC will rally to $100 and bitcoin will be done. You heard it hear first folks. We're still above $7.2, the price you said was going to be the high for 2012 (old high becomes new support). At least the market is interesting again. Anyone's call where the trend goes from here.. |
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Atm I think its buy on namecoin, they're nearly double what I paid for some a couple of days ago.
Damn, how'd I miss that? You mean BTC is nearly half what it was a couple of days ago. |
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The ask wall at $13 is a blatant attempt at manipulating the weak hands into selling their coins. Mtgox should remove all the asks again lol.
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This has been brought up before..
One person suggested that it is a bot figuring out the high and low, by making a trade.. since the tickers are unreliable..
Like feeling around in the dark with your API trading bot..
I tend to think its something like this..
Yup. Most likely its an attempt to probe for iceberg orders. |
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Well, first of all we can forget the alter-ego story. Tihan Seale has confirmed that Zhou indeed is who he says he is, and I see no reason why he should lie.
Does the community accept Tihan Seale as an upstanding member of the community? If so I guess we can accept that ZT is indeed who he says he is? If the community does accept this, then do the people who believe ZT not to be who he says he is have anything to say to the matter? Gavin has verified Tihan to be what he says he is, and if Gavin isn't an upstanding member of the community we're in a lot of trouble. Yes, hence my thread. Dr. Kevin Lim PhD = Zhou Tong. After you read the OP, let me know exactly which dot I didn't connect. ~Bruno~ The dot that was a stretch to connect was sgitcoin = sgbitcoin. if you do that one, then stevejobs807 = steve_bobs. Connecting them all way, Dr. Kevin Lim PhD = Patrick Strateman. (which at this point, wouldn't even surprise me). |
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The price of bitcoin is directly proportional to the amount of shit-talk in the Something Awful thread about bitcoin. The more they hate on it, the higher it goes, making them more and more wrong.
finally, a reliable indicator! Thank you sir Is there a link to the SA thread or is it in a subscriber section? SA trolls can be entertaining to read sometimes. |
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What an insulting bid.
Pull your Bitcoins out of the exchange. We're done here. We'll come back at $1000 -- maybe.
lol. I agree with you here, but I find the asks more insulting than the bids. Just wish I had the USD to buy it all up. |
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I doubt it's MtGox. Why would my SR coins go to MtGox, unless SR is taking a leveraged short with members' coins?
They're not "your" coins. Only some portion of coin deposited to SR eventually goes to 1DKy, because at the very least some SR vendors or users withdraw from SR to, eventually, MtGox. Its also possible that the SR tumbler purposefully deposits to MtGox to mix with MtGox coins. MtGox is the biggest coin-mixer so if they do that makes it much more difficult to distinguish an SR address cluster. |
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Oops. So nimda's coins sent to SR went to 1Dky too. And I see your analysis, but its far from conclusive proof that its 1Dky is controlled by SR. But what about that cluster of 25k addresses, all since June 18? So my deposit sent to SR on June 9 probably went through a different cluster. Maybe the SR tumbler is periodically creating fresh address clusters. There would have to more experiments to analyze SR's coin tumbler, like timed deposits and withdrawals. |
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