This is an ingenious mechanism, which achieves the following objectives:

- No central point of failure; the central software cannot mathematically cheat, since if it clears the market according to the orders of each of the members, it will have been cleared it according to all of them.

- About 30% of the bitcoins of the world will be able to be part of the price finding mechanism without need to physically move them or even know the exact owners and whereabouts of them. Quite many of them will be owned by the members at that point, and some non-members will certainly know of the members who act as their brokers. Dealers do not need to divulge their local order book (amounts, personal info) to anyone, the amounts will be sent to the blackbox encrypted, the customer info stored locally.

- Any local dealer can serve any Prince Harry who wants to purchase 10 million worth of bitcoins, which is impossible in the current exchange model (prepayment) and the Web-Of-Mistrust model (nobody would trust you for more than you have been doing before, which is childish if we are talking about actual business).

- Yes, as the end-user customer, there is no need to store your cash or bitcoins anywhere in particular. Only the dealers will need to abide by the following conditions->

If the following conditions are met:

- All (= every one of) the members are professionals, to make it smooth enough to have a delayed 84 hour settlement with an assigned counterparty.

- Members post a bail to cover their total outstanding orders limit, or any lesser amount if it is considered stupid enough to scam all the other members of the network prorated.

I was astounded by your join date. You don't seem to be too smart, having spent here so long, still not understanding anything. Or was it just that you sold at the bubble pop in February 7th, 2013, and have a hard time adjusting your reality?

Your frustration reminds me of what I have been experiencing locally with Technomage. He is running this business, which used to be the bitcoin company in Finland. I started buying bitcoins from him last September, and everything worked smoothly until about March. I have bought many bitcoins from him, and I was definitely their largest paying customer. Then he starts to ignore me, and spends more time talking about me in their private chat, than talking to me, their largest customer. He has not called me, nor answered to my call, for 3 weeks now.

Now that is not a way to handle your biggest customer. He [me, the biggest ex-customer] ends up making a better system, overtaking your business just for the indignation ("vitutus" på finska) that he is not being served. They actually had a broker desk that I could call at will, back in March! Now, WTF, the person I am assigned with to be helping with my business, is not picking up the phone for THREE WEEKS. HOW THE FUCK DO YOU THINK I CAN BUY OR SELL BITCOINS OR ANYTHING IF YOU DON'T PICK UP? It is all right if you want to be sent email, but I have almost finished using it, did not read my main business email address for 3 weeks - if you have sent an apology there I HAVE NOT READ IT, I want to be served by voice.

Oh I see, I was exposed for not reading my email. Perhaps it would have been all good if only I had opened that one (I still haven't). We are all stressed over having so much to do, the difference is that you generally should not make your biggest customer as angry as Goat is over Mike or I am with Henry.

I made two infamous BTC700-BTC799 trades last week. One was at gox, the other was OTC. Let's split the banking system effect:

- I sell at the casino -> receive internal gox money -> banking system not affected (practically impossible to withdraw already but we've got used to it, no big deal if it is cut altogether)

- I buy at the casino -> receive btc -> problem solved, bitcoin transfer not affected

- I sell OTC to my local friend -> he pays cash, gold, silver -> banking system not affected (he is still short EUR 7k from the deal and will need to deposit it physically this week as he has some issue with the bank)

- I buy OTC from goat -> now this is a tricky one since he needs to be paid in the local currency -> I spend several hours trying to pay in multiple installments to minimize the risk of bank default. The staff in the bank make it so difficult that I end up deciding to pay all at once, without escrow; too difficult, not worth my time, I trust goat, he trusts me, I don't trust bank and I really have a problem if the banks fail on this. But so do they, it will be their last fail to screw both of us in front of the bitcoinworld. Nobody can trust the banks any more if they fail in this one. (This does not mean that they won't, however, but I never play with more than I can afford to lose to prove a point...)

So, my conclusion:

To me it seems that the banking system has already played itself out of this game. In only one of the 4 transactions was it involved at all, and even there they acted like jerks who had been doing it for too long and wanted to be out. If it was convenient to have .999 metric gold in Thailand (which it isn't; they have both different purity and different unit) I would have probably sent it over by Fedex rather than bothering to call the bank.

Not that it was not difficult to send gold. You run into all kinds of trouble.. but after bitcoin, all the trouble that the world system heaps on you, will act to their own detriment, not yours. By playing nice or ignoring you, they make themselves unimportant, since bitcoin works better. By fighting you, they can eat up hours of your precious time and make themselves sound like jerks, and everyone will read about it in Bitcointalk and wise up.

Banks, according to my observation, you have a precious little share in bitcoin transactions right now, and about to lose it all. Bitcoin user won't even notice when the last cord is cut. Bears better buy in. It's gonna be a ride from now as people are understanding this (read it all, just recently pruned with a steady hand!).

You can't develop a collector's value for them if you have them all...

Is the supply of them capped?

There are now 6 paid admissions to the summit, and all of them are for a physical stay. I am sorry to not have got back to you, I would be delighted if most of you would post something here, and would ask the general questions in public, so that me or a member of our staff can answer. I have been busy with a certain unforeseen deal today, but intend to not work at all during the rest of the week, except for this, which will receive my undivided attention.

The next ticket will go for 7,000mBTC. There is a new opportunity of a virtual admission, which entitles to everything except the actual coming to the summit, for a discount of 5,000mBTC. This means that you will still have to pay the 7,000 (or more) to the address, but will get 5,000 back at the instant that I am available to send it.

If you require practical assistance with getting a visa or anything, I want to help you by PM.

I encourage both the big potatoes and the disciples to sign up. The current balance is a bit of both, and we can easily accommodate more of either. I am sorry that I do not currently have the permission to disclose the identities, I hope I will do it for most of the delegates soon, or you can speak up for yourselves!

If you want to register, please read and understand the invitation.

I am not sure if the haters have a vote, do they? 

Here.

Workshop: DEALER NETWORK

This workshop will be held in I Bitcoin Supernode Summit Finland 9.-12. May 2013.

MISSION STATEMENT:

We believe that setting up a decentralized, enormously liquid way of determining the USD/BTC rate, is beneficial for the continued increase of the rate. We believe that it is possible to gather together the owners of 3,000,000,000mBTC (about 30% of all the bitcoins aboveground) to regularly post their willingness to sell a part of their stash to the rising prices. The ultimate counterparty would be a new bitcoin user who buys these coins. The intermediary would be a Bitcoin Supernode dealership. We believe that this operation can be set up in 3 months, and it will be the ultimate stabilizer of the price, even though we expect that the actual number of coins traded by this mechanism would likely not exceed the aggregate turnover of the exchanges, even after the 3 months.

TECHNICAL:

1. We set up a Bitcoin Dealers' Association, which will accept members upon very strict scrutiny. The number of members will be limited to about 200, and it is not mandatory to have more than 10 for it to work properly.

2. We set up an order matching software, which will process the net dealer orderbooks of the BDA members, every 8 hours. I propose this happens at 00:00UTC, 08:00UTC and 16:00UTC, continually, every day. There will not be continuous trading at all in the first stage; it can be added later if found beneficial. I don't think it will add anything, since we already have the exchanges for play.

3. Net dealer orderbooks will be sent encrypted to the software, it will find the market clearing price, and send the details to the counterparties of the actual trades. The software cannot (ie. it is mathematically impossible to) cheat. If all of the participants see their net position fulfilled at the fixing price, the software has worked properly.

4. It does not cost anything for a member to send their orderbook, also there is no fee for the trades matched. The fees are a fixed membership fee and a one-time registration fee. In addition, members can buy the stock of the association (stockholders decide the directors etc.) and they will have to post a significant bail, which will cover the maximum of outstanding trades by the member, and is held in a 3-out-of-5 escrow perpetually during their membership.

5. The trades are settled T+4, which means that the trade contracted will have to clear in the other end in 96 hours from the fixing. Eg. fixing on Monday at 00:00, will have to be paid and cleared in the receiving end by Friday at 00:00.

6. If there is a delay in settlement, a penalty will be imposed + all the expenses of the counterparty will need to be covered. If this is due to negligence, a warning is issued. If there is further negligence or an outright default of the payment, the bail will be used to cover the damages and the member is expelled. If (which can not happen unless the scamming party can also hack the blackbox software to give him a larger outstanding orders limit than his bail covers) the damages exceed the bail, all other members pay prorated, and the scammer is expelled and criminally prosecuted.

7. The software will publish the fixing price automatically and immediately to the public. The volumes and counterparties of the trades will not be published.

8. Later on, the settlement can be extended to futures contracts, and options on futures can be written.

Tough one  Molecular says he does not want to charge BTC1 and I also think it's excessive. His idea was .85, don't think it is a good one..

But there is no sweet spot sub-1 except .75 which would be akin to giving them out at cost. If I had them, I would perhaps go for 0.9 or keep it as a strict collector's special at 1.

I think the same, how about join forces? I think Casascius can better position himself to the elite collectors' coins market for now. Elite is always good if you can get there, and I think Mike has his business in a good order now!

Thank you for your kind words, sir.

OK, wake me up when it hits $130, I will buy bitcoins/goxmoney/whatnot at a reduced rate then...

+ I am routinely selling non-collector (2012/2013) casascius for about the following:

BTC1 = 1.50
BTC5 = 6
BTC25 (2011 but with correct hologram) = 28.5

Just please tell him (to Mike), how you (the critic) would have done it??  

This one guy is overwhelmed with the demand and realizes that his services are worth more than he previously asked for them.

I also raised my prices when I felt the pressure, now I am able to make one deal per day (+the aftermath) and still take care of my daughter...

I would give 60% that we will cross $150 today. At any rate the support in $135ish will hold.

Would be confident to buy now but no need I actually OTC bought BTC100 @146, little bit dear but did not want to sell for such a small gain...

Suomen Verkkomaksut is really siding with the devil...? 

I will have to call them tomorrow...

I have a lot of casascius coins, all face values and years (except the .5BTC I assume Molecular will promptly sell me at least 10 pieces..)

If you really want to have one, PM me. I will not sell for cheap but I have them all.

(implicit permission to post here, thank you OP  )

+1. Self-moderated thread is good if you actively use the [delete] button. Otherwise it will just bring you disgrace.

I don't feel comfortable telling that I can go short such a big amount, since that would lead to one of the following conclusions in the reader's mind, neither of which I want to express:

- I am more bearish on bitcoins than I say
- I am a playa who shorts a significant amount of bitcoins at will
- I have quite a number of bitcoins.

So just please, forget it. Since goat wanted to come public, it is OK. I bought from him, and I hope to get the wire out tomorrow. I am paying the 2.65M THB upfront, he will not need to send a single bitcoin to me before he's got the money.