Zhou, 1 thing I would suggest for your site: lots and lots and LOTS of clear documentation. When I trade on TD Ameritrade I have a whole exhaustive documentation section that breaks down the fees and math into plain english that real people can understand. When you're a business making money, it's sort of incumbent on you to help your users understand what's going on.
+1 Gonna hire someone to do it. Any one interested? PM me with your Skype. |
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It's more of personal trading behaviors.
I agree that we should take more responsibility in making Bitcoin a better currency, so we will take several actions in the following days to minimize our negative market impact during volatile times.
But generally, I disagree with your statement. Bitcoinica didn't start the spikes, someone else did. Bitcoin is very financially vulnerable at the moment and we need more options for traders to build a strong financial system.
Yes, there are those who like the gambling and others who prefer investing. And the people with the appropriate funds also are quite fond of tricking your system to enrich themselves. Thanks for acknowledging that. So, because Bitcoin is vulnerable due to low market cap and illiquidity we need more leverage, derivatives and anything but a real market? Bitcoinica is pushing the exchanges to do better. We didn't even have a partnership with Mt. Gox. So we are totally open in terms of exchange options. |
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bah and i was wondering when you go to 50:1 .....
When Bitcoin is at least $1000, I think 50:1 will be possible. bitcoin will never go there if users need a nanny when is money to be made there you will get big player to put the price up at 50:1 u can shake things in a awesome way and also make money and money will bring in more players If Bitcoin is $1000, it will be hard to "shake" things in terms of percentage. The volatility could be even less than gold's. |
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Stop using it.
Buy Bitcoins with your own fucking money. Save them. Trade if the market goes crazy in a direction.
This is the contender for the future global high quality store of value. Not a pyramid scheme.
Or is it?
It's more of personal trading behaviors. I agree that we should take more responsibility in making Bitcoin a better currency, so we will take several actions in the following days to minimize our negative market impact during volatile times. But generally, I disagree with your statement. Bitcoinica didn't start the spikes, someone else did. Bitcoin is very financially vulnerable at the moment and we need more options for traders to build a strong financial system. |
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bah and i was wondering when you go to 50:1 .....
When Bitcoin is at least $1000, I think 50:1 will be possible. |
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Why can't we build something better than Mt. Gox?
We already done that - we use DarkExchange on I2P I mean, OP assumes that Bitcoinica is a buggy system like Mt. Gox. And it's entirely possible that Bitcoinica hasn't been affected in this crash at all, systematically and financially. then why do u need the short term loans? Because we don't have reserves for some heavily leveraged users. We are absolutely solvent throughout the crash, and we made some small profits from the huge volume. This has nothing to do with the crash. We had the asterisk since two days ago. |
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for sure, it is costing his customers who are now starting to walk away.
I would seriously hope they are. Anyone leaving more than a bit of lunch money on Bitcoinica after all that’s happened is either filthy rich or insane. I think I can now agree with you that Bitcoinica has harmed Bitcoin as a whole, and is continuing to do so. It’s turning this thing into a pyramid scheme. Our biggest clients who trade on 2.5:1 leverage have been fine. We will re-consider our 5:1 and 10:1 options soon. |
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Why can't we build something better than Mt. Gox?
We already done that - we use DarkExchange on I2P I mean, OP assumes that Bitcoinica is a buggy system like Mt. Gox. And it's entirely possible that Bitcoinica hasn't been affected in this crash at all, systematically and financially. |
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15 seconds AT MOST.
The * has been on one side or the other EASILY 66% of the time over the LAST 2 DAYS. That's because of reserve problems, not connection. We're considering getting short-term loans when this is happening, but it will take a while before we solve the compliance problems. |
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double ** is when bitcoinica cant connect to mtgox api
I think, that Z should provide clear indication of connection problems (date, time and resolution status) It's intermittent. Usually it doesn't last more than 15 seconds. You can just place orders and you will be fine. |
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i think the attack on Bitcoinica has begun.
this type of volatility can't be good for Zhou. at least not for his customers who are being liquidated. no players; no money.
why hasn't he come forward to tell us what's going on?
Nothing is going on. The system handles everything perfectly (including your spamming orders). The asterisk is due to Mt. Gox API unstability, if you place order it still should get executed in 15 seconds AT MOST. I wonder why anyone would associate market volatility with Bitcoinica system instability. Why can't we build something better than Mt. Gox? |
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Amazing to watch this haha, I managed to buy 200btc at bitcoinica @ 6.03 while mtgoxlive said it was 6.95, so I'm going to sell those with at least a profit  I zhoutonged Zhoutong or at least mtgox mtgoxed zhoutong lol goxing zhoutong?  Bitcoinica was goxxed. |
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the dreaded double ** keeps popping up. what the hell does that mean?
Mtgox' API is going wacky all the time. All the charting sites are having trouble as well in getting reliable feed. If the feed isn't reliable, Bitcoinica prevents any trading from happening until the feed is back up. by then the market could have moved way beyond reasonable. didn't i say this? Mt. Gox API has two layers: the authenticated and the public. The price feeds we get are very reliable, and we can always track the highs and the lows regardless of how the charting sites fail. But if we can't get proper connection to account API, we can't hedge. Hence the double asterisk. |
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I have sent 1 USD code to everyone.
Thank you for your support!
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In true Forex fashion when you click that button and they cant get that rate for you it should read "Rates Changed". Now Bitcoinica just decides to treat it like a stock market order and place it when they can. Which is really not right and the reason I only use Limit orders.
I used Forex.com's trading panel before, and actually they allow you to set a percentage limit for "Instant Execution". So basically you're placing a limit order, but if it can't be executed immediately (due to "Rates Changed"), the order is abandoned. However, market order is market order. If you specifically place a market order, it shouldn't be canceled due to "Rates Changed". |
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Hm. Now that I think about it (my short term memory isn't the best...) I may have placed several smaller orders in quick succession. It's a bit weird that the orderbook only shows a price for one of them, 6.841, executed at 6.6293, and the ones that got executed higher have no price listed.
Well, it may well be my fumble, but I do remember first hitting buy, then a few seconds later seeing the sell price skyrocket on the charts, and sure enough I was the proud owner of several bitcoins with a base price of over 7 USD. Can the "no reserve" situation cause market orders set at one price to execute at a higher price if they get held up? Do the orders get a price set if the bull's eye is winking, or do they simply get executed at any price as soon as buying becomes possible?
Multiple orders may be executed at different prices. A large order will give you the market price at the exact moment, and even larger orders will be split into ฿50 chunks. Multiple orders and "chunks" are treated equally. |
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As soon as some of the longs are liquidated, those of us who still have some margin held back will catch the knife...
That is exactly the problem. Since so many people want to buy, Bitcoinca will not have reserve until there are less people wanting to buy. Since there will CONTINUE to be no reserve (because people are trying to catch the knife), this problem will get worse. When a few more people start shorting, the people who are longing will be liquidated and/or panic. We already dropped from 7.18 to 6.55 and we still have no reserve. This problem is only getting worse. There is no crash and the consolidation above 6.5 could be a great and one of the last buying opportunites before a breakout.
It's not a buying opportunity if there is no reserve. I disagree that Bitcoinica is the main source of buying pressure. Generally I would have disagreed too. But this time is different. From 6.3-7.0, Bitcoinica was running a spread-free promotion and the hedging volume was over 80% of Mt. Gox's over the same period. Even though I didn't look through trading logs, I'm pretty sure that Bitcoinica was the buying pressure. But for the crash, I have no comment about it. Again, I reached the conclusion from the data available to you all. |
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It's safe to share our old figures. That's at least 7 days ago.
We had 110K long at peak (with 20K short), including ฿ holdings.
We don't do stats on "daily long vs short" because everything just keeps changing. We only calculate the totals.
On the order of 100k BTC? What happens if someone dumps 100k BTC right now, remember that day in November? A large trader may possess six-digit BTC sums and try to abuse the overshoot, no? Well, I don't really know the algorithms, but that's one reason why I'm not trading on Bitcoinica. I'm far too lazy to analyze a trading mechanism with such complicated mechanics. Let a strong trader find an exploit, and the whole thing goes kaboom. It's total positions. AFAIK, a lot of traders have their liquidating price below $4, or even $3, which is quite safe. The gain is much less than the loss. If Bitcoinica's financial model is flawed, it would have been abused already. We have seen so many squeezes and none of them really affects Bitcoinica much. |
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so how many BTC we got on long on bitcoinica counting the last days ?
It's safe to share our old figures. That's at least 7 days ago. We had 110K long at peak (with 20K short), including ฿ holdings. We don't do stats on "daily long vs short" because everything just keeps changing. We only calculate the totals. |
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Would be interesting to know what kind of money this guy has got as a reserve given it is widely believed he is a teenager.
Usually 6 digits in USD and 5 digits in Bitcoin. but not now, huh?  now you have 0 digits in USD probably. We have one digit - zero. |
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