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they said "We are working to transfer a secure backup of the Bitstamp site onto a new safe environment and will be bringing this online in the coming days"
IMO, you will hear news next week.
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Bitcoin is like a ponzi scheme. No new comers, the price is falling ,right? More new comers, the price is raising  same for HYIPs. they last as long there are new comers. yes, the Bitcoin system itself can last but useless if nobody is using it. Now, Bitcoin is used for cyber crimes and speculative investment(short period of time). Seriously are you guys getting paid for this or something? I don't see why people would waste their life on a forum just to trash talk something all day. There more people using bitcoin than ever before and the price of a bitcoin is irrelevant when it comes to the technology. You seem vexed. I'm not vexed just annoyed by all the sockpuppets here saying things that ARE NOT TRUE. If anyone represents something false as true it annoys me no matter what the subject matter is. World Bank says bitcoin is not a ponzi scheme https://www.cryptocoinsnews.com/world-bank-bitcoin-not-ponzi-scheme/...
When there will not be any new fouls to "invest" in Bitcoin, the system will collapse.
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Bitcoin will not collapse if nobody "invests". It does not need investors. It works well regardless of the value of a bitcoin. This is also true bitcoin is first and foremost a technology. People buying bitcoin has zero effect on the technology of the blockchain functioning as it should. The idea of blockchain is a primary technological innovation. who said something about the Bitcoin tech? it's like you said "that HYIPs is using PHP for its website". So what? PHP is used for many application. Bitcoin system is a bubble as it is now. Yes, there are a lot of interests around it because some people make a lot of money from new comers but it's a bubble in the end. That's why "you" need to appear in the news, conferences and so on. What would this "blockchain " without the new so called "investors", without money? why do you need the Bitcoin to be "traded"? make 1 BTC = 1 USD and done. no price fluctuation No, you need the price fluctuation in order to get new fouls otherwise will be like any other e-currency. |
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that $10m from Pantera. That's indeed a lot.
Actually it is not that much. Considering office space, furniture, equipment, marketing, energy, internet access and other bills, etc, I would guess that it may support a 20-person company for 6 months, maybe a year. Probably they have already spent half or more of that amount. (Investors do not give money to a company for it to keep unused in its bank account.) If BitStamp goes under, the $10m will be lost forever, so it makes perfect sense for Pantera to further capitalise the business (if that's needed) and have realistic chance for ROI, even if it takes a long time.
I believe that is called "sending good money to chase after the bad" in finance. Pantera would have to choose between writing off 10 M$, or investing 20 M$ that will take 10 years to be paid back, before it can start yielding 1 M$/year profit (maybe). Will Bitstamp survive 10 years? The loans are not repaid from net profit, so it can take less than 5 years to get those $5m back.
The loans would be repaid from the revenue, and that extra expense would decrease their profit by the same amount. So yes: effectively, the loan would be paid from the profits. In that scenario the other investors may not receive any profits for the next 5 years. their office is supposed to be in England not in Slovenia. The office rent is around of 3000-4000 euro/month because they are in 5 New Street Square, London. They wanted to be "trendy". I do not believe they have more than 2-3 employees for customer support and order processing(bank wires). They have 1 programmer + 7-8 "executives". I counted 7. The executive salaries must be BIG(over 10K per month). in summary, Bitstamp expenses should be around of 1 mil EURO per year due to their "executives" |
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Let's see what will happen with bitcoin price if this keep continue & no good news for Bitstamp Some people already sell by now  I hope this won't become MtGox II I honestly do not think this event will lower the price of bitcoin. Bitcoin is already pretty low and bitstamp I think is trying to correct it. Bitstamp is probably one of the most reliable exchanges (and transparent unlike btc-e). how Bistamp can correct the price when it's down/dead? normally, Bitstamp price must be much lower based on market which is selling. Since 2 days, the price is frozen at 270 USD which is not normal. The big exchangers can do that in order to avoid panic.. BUT this is market manipulation . |
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Let's see what will happen with bitcoin price if this keep continue & no good news for Bitstamp Some people already sell by now I hope this won't become MtGox II At least they stopped the trade after withdraw has been stopped. Unlike Gox and their 50 bucks GoxCOins yes, they were not too greedy |
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those big exchange always end up like this, with all the money they made, they can at least make a better secure system, instead we have gox 2.0
I don't think the problem is security..it's the admins/ceo's stealing the money. I think the same. It's obvious that there are not too many orders lately, real orders not fake transactions and the admins may think : " it is time to close. How much money do we have? xx millions. Ok, it is enough to spend our life without problems from now on" |
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my question remains : Bitstamp is closed but we know that they are related with Coinbase, Bitfinex and MANY other exchangers who were processed their orders through BitStamp.
The question is which one will be more affected because they surely lost a lot of bitcoin too.
Sorry but I do not understand what you mean with related with Coinbase, Bitfinex ...? Coinbase, Bitfinex and others included the Bitstamp order book into their own order book. In short, if you placed an order with Bitfinex, your order was processed by Bitstamp even you were on Bitfinex's website. Bitfinex "fowarded" your order to Bitstamp through an API. Thank you, i did not know that! which means that all orders of bitfinex ran over bitstamp? Many of them, yes. Anyway, it must be 50% or more. that was true in the beginning but is not longer the case afaik bitfinex has higher volume than stamp these days (didnt check though) In July 2014, Bitfinex made a declaration about that . that means 5-6 months ago...not in the beginning. I am sure Bitfinex were still used Bitstamp and Coinbase the same. |
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how many "hacked" exchangers did that until now (seek an emergency funding) ? All of them had Limited companies (LTD) do not mix up the things. everything is possible in the Bitcoin industry. who will give them 5 MIL USD? it's not 500K...it's 5 MIL and the one who is lending,wants to be sure that he will get the money back. Bitstamp will never be what it was even they will cover the losses. So, they won't have the same profit not even near. nobody will lend them for a long period of time because this is a volatile market. you can never what it's bringing tomorrow. It's fair to assume that BitStamp is generating ~ $1m profit per year (after tax, salaries etc). The last thing you want is to close such business. If any of the shareholder's (say Pantera Venture Fund LP) can afford to provide such loan - they'd likely do so. They should get it back (+ interest) in 4-5 years. Even if later something goes wrong and BitStamp becomes insolvent, they won't lose the entire $5m, as they'd get paid proportionally along with other creditors from the remaining funds. So it's not as risky as it sounds. agree with you BUT these things are happening in a normal industry not with Bitcoin. According to Bitstamp, Pantera Venture already gave them 10 MIL USD (I am not sure why...why would they need a such amount???!!) we are talking about 10 MIL but it's a LOT of money. 1 MIL is huge...10 MIL USD is ENORMOUS This investor must recover these 10 MIL first... $1m profit per year (after tax, salaries etc) = 10 years, let's say 5 years because Bitspamp will doble its profit. 5 years are too long for a Bitcoin biz. Of course, 1 MIL per year profit is a very good business but when you are dealing with something with a huge volatility like Bitcoin....you can never know. Nobody will make an infusion of 5 MIL now, knowing that Bitstamp will need at least 6-10 months to reestablish their credibility(IF they will be able to do it). Volatility is only good for business of an exchanger. YES ! and these exchangers are making the market. they make the cards, setup the Bitcoin price and the fouls are paying Look to the Bitcoin price today. It's frozen at 270 USD EVEN most of the people are selling ! |
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agree with you BUT these things are happening in a normal industry not with Bitcoin. According to Bitstamp, Pantera Venture already gave them 10 MIL USD (I am not sure why...why would they need a such amount???!!) we are talking about 10 MIL but it's a LOT of money. 1 MIL is huge...10 MIL USD is ENORMOUS This investor must recover these 10 MIL first... $1m profit per year (after tax, salaries etc) = 10 years, let's say 5 years because Bitspamp will doble its profit. 5 years are too long for a Bitcoin biz. Of course, 1 MIL per year profit is a very good business but when you are dealing with something with a huge volatility like Bitcoin....you can never know. Nobody will make an infusion of 5 MIL now, knowing that Bitstamp will need at least 6-10 months to reestablish their credibility(IF they will be able to do it). Wasn't aware of that $10m from Pantera. That's indeed a lot. And if that's true, they're likely to have a lot of that left (depends on the terms of the funding), so they don't need any extra funds to cover the hacked wallet. Also, if Pantera invested such capital, you can be sure they won't let BitStamp die.
This investor must recover these 10 MIL first...
$1m profit per year (after tax, salaries etc) = 10 years, let's say 5 years because Bitspamp will doble its profit. 5 years are too long for a Bitcoin biz.
If BitStamp goes under, the $10m will be lost forever, so it makes perfect sense for Pantera to further capitalise the business (if that's needed) and have realistic chance for ROI, even if it takes a long time. Edit. The loans are not repaid from net profit, so it can take less than 5 years to get those $5m back. it is true what I am saying. BitStamp received 10 MIL from Pantera last year. http://www.coindesk.com/bitstamp-got-10m-fortress-linked-hedge-fund-last-year-bloomberg/The loan cannot be paid from people's deposits. Then, it must be paid from profit. Pantera won't lend them other money. Be sure of that. Bitstamp won't be able to return 15 MIL. Bitstamp won't have a good profit in 2015 because of these problems of credibility. Bitstamp has a lot of expenses. Do not forget, PayPal chief compliance officer came to them too. He must paid with a BIG salary. |
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...
When there will not be any new fouls to "invest" in Bitcoin, the system will collapse.
...
Bitcoin will not collapse if nobody "invests". It does not need investors. It works well regardless of the value of a bitcoin. what you mean with "works well" ? if nobody investing(come with new money in system), who will use it then? please explain. let's say you want to "sell" your bitcoin. to whom will you do it? You can sell it to those that already accept bitcoin Do you not see the difference between a ponzi scheme and bitcoin that works eventhough there is no incoming money? Its better if more join in but it still WORKS without new people having to constantly buy more. ponzy schemes dont work at all if there is no incoming money. then Bitcoin should not be related to fiat currency at all. Imagine that you have an online store who is selling laptops and you accept bitcoin. you already "bought" these laptops from a manufacturer with 1000 usd each and you want to sell with 1500 each. You see that the bitcoin price is 1BTC = 270 USD and you set 5 BTC for one laptop. someone is buying one laptop with 5 BTC BUT you as a business(company) needs to pay your bills(gas, salaries, electricity) too and nobody is accepting Bitcoin. You will want to get cash for your 5 BTC. You will have to find an exchanger and when you want to exchange...surprise !. 5 BTC = 900 USD because the Bitcoin price fell. you have loss even you did your work very good. Bitcoin is a speculative bubble — that is, a special kind of fad, a mania for holding an asset in expectation of its appreciation. |
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Let's see what will happen with bitcoin price if this keep continue & no good news for Bitstamp Some people already sell by now I hope this won't become MtGox II As you can see, nothing happens with the price. It's like frozen. There are massive sells but the price is not dropping at all. Again, the big exchangers are manipulating the market. |
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how many "hacked" exchangers did that until now (seek an emergency funding) ? All of them had Limited companies (LTD) do not mix up the things. everything is possible in the Bitcoin industry. who will give them 5 MIL USD? it's not 500K...it's 5 MIL and the one who is lending,wants to be sure that he will get the money back. Bitstamp will never be what it was even they will cover the losses. So, they won't have the same profit not even near. nobody will lend them for a long period of time because this is a volatile market. you can never what it's bringing tomorrow. It's fair to assume that BitStamp is generating ~ $1m profit per year (after tax, salaries etc). The last thing you want is to close such business. If any of the shareholder's (say Pantera Venture Fund LP) can afford to provide such loan - they'd likely do so. They should get it back (+ interest) in 4-5 years. Even if later something goes wrong and BitStamp becomes insolvent, they won't lose the entire $5m, as they'd get paid proportionally along with other creditors from the remaining funds. So it's not as risky as it sounds. agree with you BUT these things are happening in a normal industry not with Bitcoin. According to Bitstamp, Pantera Venture already gave them 10 MIL USD (I am not sure why...why would they need a such amount???!!) we are talking about 10 MIL but it's a LOT of money. 1 MIL is huge...10 MIL USD is ENORMOUS This investor must recover these 10 MIL first... $1m profit per year (after tax, salaries etc) = 10 years, let's say 5 years because Bitspamp will doble its profit. 5 years are too long for a Bitcoin biz. Of course, 1 MIL per year profit is a very good business but when you are dealing with something with a huge volatility like Bitcoin....you can never know. Nobody will make an infusion of 5 MIL now, knowing that Bitstamp will need at least 6-10 months to reestablish their credibility(IF they will be able to do it). |
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another big bitcoin scandal
it s very bad for btc's future
people wants safetly system..
you cannot have a so called safe system while it's not regulated. it's very curious that the Bitcoin price is the same. the other big exchangers are faking the transactions for sure otherwise who will BUY these days? most of the people are selling  |
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my question remains : Bitstamp is closed but we know that they are related with Coinbase, Bitfinex and MANY other exchangers who were processed their orders through BitStamp.
The question is which one will be more affected because they surely lost a lot of bitcoin too.
Sorry but I do not understand what you mean with related with Coinbase, Bitfinex ...? Coinbase, Bitfinex and others included the Bitstamp order book into their own order book. In short, if you placed an order with Bitfinex, your order was processed by Bitstamp even you were on Bitfinex's website. Bitfinex "fowarded" your order to Bitstamp through an API. Thank you, i did not know that! which means that all orders of bitfinex ran over bitstamp? Many of them, yes. Anyway, it must be 50% or more. |
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my question remains : Bitstamp is closed but we know that they are related with Coinbase, Bitfinex and MANY other exchangers who were processed their orders through BitStamp.
The question is which one will be more affected because they surely lost a lot of bitcoin too.
Sorry but I do not understand what you mean with related with Coinbase, Bitfinex ...? Coinbase, Bitfinex and others included the Bitstamp order book into their own order book. In short, if you placed an order with Bitfinex, your order was processed by Bitstamp even you were on Bitfinex's website. Bitfinex "fowarded" your order to Bitstamp through an API. |
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On January 4th, some of Bitstamp’s operational wallets were compromised, resulting in a loss of less than 19,000 BTC is stated on bitstamp.net
How much BTC are they suppose to hold?
2-3 K bitcoin or less in their operational wallet |
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my question remains : Bitstamp is closed but we know that they are related with Coinbase, Bitfinex and MANY other exchangers who were processed their orders through BitStamp.
The question is which one will be more affected because they surely lost a lot of bitcoin too.
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the proof is here: Bitstamp lost 19K bitcoin = 5 mil usd do you think that they were safe? try to withdraw some money from them today, see if you can BUT there are safe, right? |
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