Do you know how much Bitcoinica pays in fees? Probably a significant portion of mtgox's income.
they need to transfer bitcoins to mtgox (and thus to pay fees) only when there is a statistically significant change in the positions of all their customers. However, when trades inside bitcoinica are balanced, they do not need to pay any fees. Trades inside bitcoinica are significantly higher in volume than what they actually trade with mtgox (at least this is what they claimed a few days after opening). Our 30-day volume is kept constant at around 500,000 BTC at Mt. Gox. So it's about 1,300 BTC in fees every month for them. Also, not to forget that Bitcoinica has facilitated the other sides of the trades, which generate extra fees of 2,500 BTC in total. (Assuming the average fee is 0.5%.) Mt. Gox has made a lot (almost 4,000 BTC per month) from Bitcoinica. This is truth. |
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In my opinion, the story goes like this.
Mt. Gox User: Mark, please, I want to trade at your site. Please allow me to get a code for your site on Bitcoinica.
Mark: No, I don't want your business, because your funds come from Bitcoinica.
Practically, Mt. Gox shouldn't have a limit on Mt. Gox codes because they are how people transfer money internally to trade. Majority of Bitcoinica users want to withdraw because they want to trade on Mt. Gox.
Also, legality is irrelevant in this context. Bitcoinica can't launder money if majority of its users only use Mt. Gox codes for deposits and withdrawals. (The last "hop" of money laundering must be at Mt. Gox, where withdrawal limit applies.) I have specifically told Mark that no other withdrawal method will be used for bitcoinica_withdraw account.
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Liquidity problem yes, but it is also cold hard facts. Regardless of how well put together it is, Bitcoinica is dancing on the razor edge of legality and doesn't have a leg to stand on in demanding better service.
In one what universe is Bitcoinica standing any shakier than Mt. Gox when it comes to international cashflow, regulatory compliance, and AML enforcement. This is a petty attempt at Mt. Gox to undermine a competitor. Having 99% of the market isn't enough.  Bitcoinica can easily double or triple the volume of an exchange like TradeHill. Everyday the hedging volume at Mt. Gox is 1/4 to 1/3 of their book. I think Mark knows this. I just have no interest to switch to other exchanges at the moment. But I must say it's silly to think Bitcoinica as a competitor not a partner. When they do, Bitcoinica will really be a significant competitor. |
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zhoutong:
1. Is bitcoinica a corporation?
2. Why hasn't bitcoinica submitted proper corporate documentation to mtgox? (if you have, please say so)
1. Bitcoinica is currently operated by xWaylab Inc., a Delaware corporation. 2. I have submitted by passport for AML. So our main account has a limit increase. However, we have separate accounts for hedging and withdrawals because one has to be protected by Yubikey. The withdrawal account has normal account limits while the hedging account doesn't have. Each time you do a manual withdrawal, I would have to manually log in to Mt. Gox account using the Yubikey, and withdraw. This works 99% of the time. I have requested for withdrawal limit increase on the bitcoinica_withdrawal account, but they rejected because both accounts are owned by the same owner, and the only way to do it is to wait for their sub-account feature (with shared withdrawal limits or something). Now I'm traveling and I don't have Yubikey access at the moment, so Bitcoinica users have to request for manual withdrawal limit resets. |
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I calculated the commission rate for each volume size based upon today's numbers...
V ≤ 50 ... 2%
50 < V ≤ 500 ... 7.8%
500 < V ≤ 5,000 ... 17%
These numbers are absurd.
That's not the actual commission. You haven't taken into account market depth. Try to sell 5000 BTC on Mt Gox and see what happens to the price. Oh really? At Bitcoinica, selling 5000 gets you 2.5666 each. At mtgox, ACCOUNTING FOR DEPTH, at least 2.7 (check on mtgoxlive). Rates are indeed absurd. Yes really. The difference between 2.5666 and 2.7 is more like 5% not 17% like Zotia posted. I meant to say that commissions are still absurdly high even when you account for market depth. They are "guaranteed" rates since the bid walls are not always reliable. We want to prevent abuse so we left a large margin of error. However, most people will more likely do several smaller exchanges for the market to absorb the trades. It will not be guaranteed but generally your rates will be much better. |
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I haven't funded my account (on purpose), but I created two orders on it: one to buy 1BTC, and one to sell 1BTC. I can't cancel the orders via the UI (they're stuck in "insufficient margin"), and I can't seem to even be able to cancel them via API (though the last time I tried that, it was BEFORE this new version).
You don't have to cancel it. If there's no sufficient margin the order is discarded. This is how most real-world trading platforms handle it. So if I were to deposit a couple of bitcoins and a few dollars right now, neither of those orders would become active? They won't be active again. The main screen will show all active orders. Other than that won't be executed. |
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I haven't funded my account (on purpose), but I created two orders on it: one to buy 1BTC, and one to sell 1BTC. I can't cancel the orders via the UI (they're stuck in "insufficient margin"), and I can't seem to even be able to cancel them via API (though the last time I tried that, it was BEFORE this new version).
You don't have to cancel it. If there's no sufficient margin the order is discarded. This is how most real-world trading platforms handle it. |
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I imagine your backlog must be huge!
Well, you're right. There are a lot of pending withdrawal requests and I can't access the database, LOL. Luckily the new system is perfectly stable and we don't have any data errors or scaling issues. I'm busy replying customers' emails right now. :-D |
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New features:
- Better Deposits and Withdrawals (No more emails to request for manual withdrawals)
I'm currently waiting for four hours for a manual approval for a USD withdrawal via a MtGox code while the markets are moving quite a lot and I have no way of accessing my $ because I cannot operate with them neither on Bitcoinica nor on MtGox.  I also started a thread on Bitcoinica's support site three hours ago with no response. http://help.bitcoinica.com/discussions/questions/19-manual-approvalReally sorry for the problem. I'm traveling at the moment and I don't have stable Internet connections in China. Your withdrawal request was received when we run out of limits at Mt. Gox. I will try to get your withdrawal request approved. |
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We were too lazy to put up a countdown. But well, now the new site is up, after a short period of downtime (mostly DNS resolution time). https://www.bitcoinica.com/New features: - Refresh-less experience - PJAX - Better User Interface - Account Ledger - Order History - Better Deposits and Withdrawals (No more emails to request for manual withdrawals) - Currency Exchange with guaranteed rates and liquidity - Advanced Charting, including over 20 technical indicators - Hosted by Rackspace - Partially Redis-backed - super-fast! - More robust trading engine - Customizable leverage, from 1:1 to 10:1 - … Experience yourself... We hope we can continue setting high standards for Bitcoin web-based services in terms of innovation, quality of development and user interface. As usual, we welcome your feedback. Along with this launch of new platform, we would like to bring back our popular bug bounty program! Security-related or critical loopholes: 5 - 100 BTC each Operational bugs: 1 - 25 BTC each User experience issues: 1 - 25 BTC each We have been testing ourselves for more than a week, so we don't really rely on this program to fix things. However, we do want to hear your feedback and we will continue improving Bitcoinica! Please send your feedback to support@bitcoinica.com (if it's account-related or private) or feedback@bitcoinica.com (if it's public). Thank you for your continuous support! |
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When will 10:1 leverage be implemented? What exactly is the "verification" procedure?
We will launch the new version this weekend. Plus a big news. You will know soon. |
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I had a premonition! in one of my dreams last night bitcoin started to skyrocket like crazy going above and beoyond 30$. in my dream i did not sell my coins at any point ... but i was feeling stupid for not having bought 1000 at 2.50...  Aim high boy! You should dream for $1000. That's a realistic future. |
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Going back to the theme of it's too quiet, I have noticed the BTC price chart for the last week where everything seems quite steady.
There are no precipitous drops, a good point of resistance in the $2.20 range, gradual 5% to 10% increase over a few days, a bit of a gradual sell off, and then it repeats.
I know this can change any time, especially with manipulator intervention, but isn't this nice, for now??
SJ
If the price is $100 then it's really nice to have such stability. But for now, the potential instability is still terrible for commerce. |
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What do you mean by that? Was the last bitcoin conference in spring this year?
EDIT: I understand, you are shitting me. It is clear to me that nobody can predict if and what will happen.
But there were other big events like conventions around bitcoin in the past. What happened there?
I wasn't shitting you, LOL. If Bitcoin Conference to Bitcoin is like Olympic Games to a country's stock market, most likely it will rise slowly for 6 months AFTER the event. |
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Does anybody have an idea, how the the european bitcoin conference in Prague (Nov 25th-Nov 27th 2011) will affect the price?
Will it rise? Before or after this event?
By convention, it should rise after the event, for half a year. |
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As the title says:
Will we ever be able to short the US Dollar with Bitcoin? I know nothing. Enlighten me.
In other words, will Bitcoin be eventually seen as greater than the US dollar?
Short USD with Bitcoin == Long BTC/USD with Bitcoin. Bitcoinica will be perfect for this. |
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It looks nice... But it should be a lot simpler for the average user. I think the current direction of the client is a good idea.
Edit: Why not have two clients? One for advanced users, one for simple users
Multi-Bit is better for starters. I don't think anyone wants to download blocks for 8 hours just to see a transaction. |
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I'm not quite satisfied with the new Bitcoin-Qt UI. There are too many mouse clicks and things aren't presented obviously. Since this project is still new, I'd like to contribute my mock-ups, so that developers can utilize them whatever ways they want. Disclaimer 1: They are in no way complete (or perfect). Just some personal ideas to fill the blank spaces and reduce mouse clicks. Also, I didn't do any graphical design, so a wonderful product will be the combination of this design and some professional graphics (if I have time, I will make some). Disclaimer 2: Even though this is done in Mac, Qt should be fairly easily to customize to achieve the same effect. But, please, try to use Cocoa and Windows API for Mac/Windows clients. This mock-up was done using Interface Builder of Xcode. Main interface:  Send Coins pop-up: (I especially hope to see Mail.app-like Token field)  Transaction Details HUD:  I don't really know anything about visual development, but I'd like to contribute and learn as much as I can. |
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I will donate 10 BTC for each organization, up to 500 BTC.
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Oh wow you are the second third person calling me a troll this month, I really should pay less attention to this sub-forum.  Somebody care to explain which part of my posts constitutes of trolling?  Yes once people are using bitcoins for commerce and exchange like you did molecular that could result in more stability. You spread your ideas as facts without supporting evidence or clarifying you are stating opinion. Calling people trolls for no reason is a sign of the weak minded. Thats not even the definition of a troll. What is everyone supposed to preface their posts with IN MY OPINION? It's the speculation forum, it's almost all opinions here. troll 1 |troʊl| noun a mythical, cave-dwelling being depicted in folklore as either a giant or a dwarf, typically having a very ugly appearance. ORIGIN from Old Norse and Swedish troll,Danish trold; adopted into English from Scandinavian in the mid 19th cent. troll 2 |troʊl| noun 1 a line or bait used in trolling for fish. 2 Computing, informal a provocative e-mail or posting on the Internet intended to incite an angry response. • informal a person who sends such an e-mail or submits such a posting. |
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