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1  Economy / Trading Discussion / Fighting the Price Divergence. What is the true price of bitcoin? on: December 03, 2015, 05:46:25 PM
Fighting the Price Divergence. What is the true price of bitcoin?

Many traders and bitcoin enthusiasts may have noticed that the price of bitcoin varies on different exchanges. Lately BTC-E has had the lowest price while chinese exchanges like Huobi have had the highest. MT-GOX classically has a 30usd+ price difference over other exchanges while the infamous Willy bot ramped up the price.

So when the price of bitcoin varies significantly as it may, what is the true price of bitcoin? How do I price my goods and services? There are 2 obvious options to this, 1) a localized approach, "i use BTC-E so i shall use their price when factoring the price of bitcoin" or 2) generalized, "i will use a basket average of several exchanges." (such as

What is the cause of bitcoin price divergence? In an ideal system various exchanges would be served by efficient arbitrage mechanisms. These mechanism function buy buying on exchanges where the price is low and selling on exchanges where the price is high, making profit from the difference in price. As long as there are spread between exchanges it should be profitable to make arbitrage trades bringing the price closer and closer together, Bitcoin is an electronic currency, transferring it from one exchange to another is trivial, (unless you are Crypsy). However moving fiat around may take 5-7 or more business days and incur large fees. The fees and time required to move fiat from one exchange to another is what prevents the arbitrage trades to reduce inter-exchange spreads,

What is the solution? Reduction of the barriers (fees and time) to arbitrage traders should allow market forces to prevail. The ability to transfer fiat from one exchange to another with the speed and cost of bitcoin, would be adequate.

How can this be done? Nubits is an altcoin tied to the price of the US Dollar by a sophisticated decentralized mechanism. For the last year Nubits price has been constantly within 0.5% most of the time within 0.01% range of the USD. If exchanges such as huobi and BTC-E both allowed bitcoin/nubit trading they would allow arbitrage forces to take effect utilizing nubits as a way to move fiat between exchanges instead of the hassle and lengthy waits of wire transfers. This would allow a significant reduction of inter-exchange spread perhaps to less than half of 1 percent.

Who would benefit? Bitcoin accepting merchants from a fair price of bitcoin, by allowing them to price goods and services constantly, Traders would benefit by allowing them to transfer funds between exchanges with less hassle, Exchanges would benefit by increasing trade volume. Seemingly everyone within the bitcoin ecosystem would benefit, except the banks collecting wire transfer fees.

What needs to be done? we need to lobby bitcoin exchanges to allow trading in nubits, and allow withdrawal and deposit capability in their API's (not all exchanges have this).

What is my motivation? I dont own any nubits, or nushares. However I would like to see a move towards a consistent bitcoin price. I operate an altcoin exchange that accepts bitcoin, nubits and other currencies. I cannot take up this activism as I do not have the free time, however I have written this proposal and encourage others to do so.

2  Alternate cryptocurrencies / Altcoin Discussion / Josh Garza, CEO of GAW Miners, paycoin, charged with securities fraud. on: December 02, 2015, 01:54:48 AM

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT  ___________________________________________ ) SECURITIES AND EXCHANGE COMMISSION, ) ) Plaintiff, ) ) v. ) Case No. ) HOMERO JOSHUA GARZA, ) GAW MINERS, LLC, and ) ZENMINER, LLC (d/b/a ZEN CLOUD), ) JURY TRIAL DEMANDED ) Defendants. )  ___________________________________________ )
 Plaintiff United States Securities and Exchange Commission (“the Commission”) alleges the following against Defendants Homero Joshua Garza (“Garza”), GAW Miners, LLC (“GAW Miners”), and ZenMiner, LLC (d/b/a ZenCloud) (“ZenMiner”), and hereby demands a jury trial:
Defendants used the lure of quick riches from a twenty-first century payment system known as virtual currency to defraud investors. Though cloaked in technological sophistication and jargon, defendants’ fraud was simple at its core – defendants sold what they did not own, and misrepresented the nature of what they were selling. 2.
From approximately August 2014 through December 2014, defendants sold – to over 10,000 investors – investment contracts representing shares in the profits they claimed would be generated from using their purported computing power to “mine” for virtual currency. “Mining” for virtual currency means applying computer power to try to solve complex equations that verify a group of transactions in that virtual currency. The first computer (or collection of
Case 3:15-cv-01760 Document 1 Filed 12/01/15 Page 1 of 23
 2 computers) to solve such an equation is awarded new units of that virtual currency. This process is known as “mining,” and the computer equipment used in this process, and the humans who own it, are known as “miners.” 3.
Defendants sold shares in the returns from their purported mining operations, via investment contracts that they named “Hashlets.” Hashlet contracts entitled their purchasers to a share of the profits from defendants’ purported “hashing power,” or the computing power (measured in megahash per second), that defendants purportedly devoted to virtual currency mining. In reality, defendants sold far more Hashlets worth of computing power than they actually had in their computing centers. There was no computer equipment to back up the vast majority of Hashlets that defendants sold. 4.
Defendants earned about $19 million in revenue from their sales of Hashlets. 5.
Defendants Garza and GAW Miners made many false and misleading statements about GAW Miners’ virtual currency mining operations to potential and actual investors. For example, they misrepresented: a.
that all of the Hashlets of computing power purchased by investors would be  pooled together to engage in virtual currency mining, and that investors’ returns, or “payouts,” would be calculated based on the success of those collective virtual currency mining operations;  b.
that buying a Hashlet would allow investors to mine virtual currency without the expense and expertise that would be required to purchase and maintain their own virtual currency mining equipment; c.
the profitability and life-span of Hashlets; d.
the extent of GAW Miners’ mining activities; and how the payouts for Hashlets were derived. Garza and GAW Miners knew that each of these statements was false at the time it was made. 6.
Defendants’ Hashlet sales had many of the hallmarks of a Ponzi scheme. Because defendants sold far more computing power than they owned and dedicated to virtual currency mining, they owed investors a daily return that was larger than any actual return they were making on their limited mining operations. Instead, investors were simply paid back gradually over time, as “returns,” the money that they, and others, had invested. As a result, some investors’ funds were used to make payments to other investors. Most Hashlet investors never recovered the full amount of their investments, and few made a profit. 7.
Through the activities alleged in this Complaint, defendants have engaged in fraud in connection with the purchase or sale of securities, in violation of Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and various subparts of Rule 10b-5 thereunder; and fraud in the offer or sale of securities, in violation of various subparts of Section 17(a) of the Securities Act of 1933 (“Securities Act”). Defendants have also engaged in the offer and sale of unregistered securities, in violation of Sections 5(a) and 5(c) of the Securities Act. 8.
Based on these violations, the Commission seeks: a.
the entry of a permanent injunction prohibiting defendants from further violations of the relevant provisions of the federal securities laws;  b.
disgorgement of defendants’ ill-gotten gains, plus pre-judgment interest; and c.
the imposition of civil penalties due to the egregious nature of defendants’ violations...

can't say you didn't see it coming.
3  Alternate cryptocurrencies / Service Announcements (Altcoins) / ExchangeD.I2P | Darknet CryptoCurrency Exchange | Bitcoin Altcoins Fiat Stocks on: June 17, 2015, 11:46:58 PM

How to use ExchangeD.I2P
Exchanged.i2P (instructions on how to access)

ExchangeD.I2P over clearnet
ExchangeD.I2P over tor
ExchangeD.I2P over I2P

--- FEATURES ---
100% Anonymous * Fiat Trading * DarkPool Orderbook * I2P Bote Email Alerts * PGP 2 Factor Authentication * Optional Passwordless/Usernameless Accounts * JSON-RPC API * Forum

Bitcoin * Anoncoin * Litecoin *  Monero * Verge * Gostcoin * Dash *  BATA * Feathercoin * Zcash

--- Altcoin Development Initiative ---
5% of altcoin denominated fees will be donated to each coin development fund.

--- Fees ---

    1% Fiat Dispute Fee.

Equity/Crowd Funding:
   0.1 btc creation fee OR 1% of total shares

Crypto Currency:
    For Bitcoin: 0.001 BTC Withdrawal Fee.
    For Monero: 0.03 XMR Withdrawal Fee.
    All Other Coins: 1 USD Coin Withdrawal Fee.

No Trading Fees.
No Network Fees.
No Hidden Fees.

--- Coin Requests ---
If you want to suggest a new coin do in on our IRC channel or post on the official forum ExchangeD.i2p forum.

--- Fiat Trading ---
Smooth and Secure. Through a network of traders and our built in escrow system

--- Stock Market ---
Buy Sell and Issue Stocks, Collect Dividends and Profit

Forum: http://exchanged.i2p/en/forum (requires i2p)
Forum: http://exchangem6mcinyo.onion/en/home (requires tor)

start i2p
port: 6668
channel #exchange
4  Alternate cryptocurrencies / Altcoin Discussion / idea for new difficulty algorythm on: October 19, 2014, 05:54:48 PM
hello, i'm not really a c++ coder but i had an idea for a new difficulty algo that i want to sound out

Abysmal Gravity Well in psudo code
block_taget_time = 180
moving_average = sum() time.blocks.last_10_in_chain/180
moving_average/1*100 = pecent increment in difficulty

feedback appreciated!
5  Alternate cryptocurrencies / Altcoin Discussion / The Next Crypto Wave. on: August 24, 2014, 05:39:37 AM
Bitcoin. Litecoin. Memecoins. CountryCoins. AnonCoins. Lots of you have been wondering, "whats next?" Well let me tell you about exchange coins.

Take a look at

#3 BitsharesX - Trade crypto equities with security, privacy and speed.
#4 Ripple - An Open Distributed Exchange
#5 NTX - The Nxt Asset Exchange
6  Alternate cryptocurrencies / Altcoin Discussion / Lets be honest on: August 19, 2014, 02:21:43 AM
Lets be honest. According to coinmarketcap there are 30 coins with marketcaps above $1,000,000USD and 86 over 100,000. Are these valuations justified or is this just like any of the other irrational speculation bubbles of the last 400 year? Ask yourselves this. How hard is it to get your coin that valuation? A couple hours of copy-and-paste coding and a website? Some shiny gimmik? We all know that the markets are in turmoil. Are you surprised? How long did you think this party would last? How is this different then the dotcom boom? Share you thoughts below.
7  Bitcoin / Bitcoin Technical Support / jsonrpc [solved] on: August 16, 2014, 06:00:27 AM
i tried running the basic getinfo script
  require_once 'jsonRPCClient.php';
  $bitcoin = new jsonRPCClient('http://user:password@');
  echo "<pre>\n";
  echo "</pre>";

I get error:

PHP Warning:  fopen(http://...@ failed to open stream: Connection refused in .../jsonRPCClient.php on line 132
PHP Fatal error:  Uncaught exception 'Exception' with message 'Unable to connect to http://user:password@' in .../jsonRPCClient.php:140
Stack trace:
#0 ...bitcoingetinfo.php(9): jsonRPCClient->__call('getinfo', Array)
#1 .../getinfo.php(9): jsonRPCClient->getinfo()
#2 {main}
  thrown in .../jsonRPCClient.php on line 140

What am I doing wrong?

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