Since they're still on line, accepting money, something needs to be done. Start filling out this Securities and Exchange Commission complaint form now. Doesn't matter if they're not in the US, if you are and they sold to you. Select the "Ponzi scheme" option (the first option; the SEC gets these a lot). If you lost money, check the Yes box for "Are you having or have you had difficulty in getting access to your funds or securities?". Check the "Yes" box for "Is the alleged conduct ongoing?". Keep going; there are options to attach documents. The SEC brings the hammer down on Ponzi schemes all the time. Their most recent enforcement action for a Ponzi was on September 17th. Doesn't matter if it's in Bitcoins; the SEC won on that issue in court last year on another Bitcoin Ponzi. Doesn't matter that they have "private domain registration" and are being hosted by a "cloud service"; the SEC can find them. It's worth reporting this even if the parties are not in the US. Someday, they just might pass through US Customs, and they'll be in the database.
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They don't need customer funds to earn money, they just need to create their own virtual funds
A simple example: I'm an exchange and I create an account with 1 million bitcoins, then I dump those coins to drive the price down from $500 range to $50 range, then I buy back all of those coins and drive the price back to $500 range. This account still have 1 million bitcoins but also have 1 million x $100 = $100 million dollars (Suppose the average profit is $100 during the sell-off). This is a very profitable business, I don't see the reason why exchanges don't want to do it?
From exchange's perspective, the only risk is: When they sell the coins, there might be large buyers absorbed all their coins thus force them to buy back at a higher price. But exchanges see all the clients' data, as soon as they see the large amount of customer deposit is arriving, they could always abort the operation before those fiat money are credited to the customer's account. They could even delay the deposit process to make more room for themselves
This is known as "speculating with customer funds". It's a form of theft. The US SEC routinely has people prosecuted for this.
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Only the tools sellers make money while all the miners are competing and killing each other. The Big Four, the most powerful men in California after the Gold Rush, and how they got started: -Leland Stanford - general store, wholesale - Collis Potter Huntington - dry goods - Mark Hopkins - wholesale groceries - Charles Crocker - hardware Then they got together and set up the Southern Pacific Railroad. None of them made their money mining gold.
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The fog cover over details of the case or what really happened to shutter Mt. Gox is virtually complete, and has remained that way for more than 6 months. That's what bothers me. Where are the Tokyo police in this? It took a while for it to come out, but Karpeles' business, Tibanne, is still in operation. Tibanne employed all the employees, rented the office space, and owned all the equipment. Mt. Gox was just a shell.
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Bitcoincharts may be broken. According to them, Bitfinex hasn't made a trade since September 9th.
Remember, Bitcoincharts is run by Mark Karpeles.
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Take a look at BTCE. There's one big buy order for about 600BTC at $400, and then nothing for a long, long way down. Trading is so thin there that market manipulation is easy.
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"Returns of up to 130% in just 24 hours." Of course it was a Ponzi scheme. What did you think was going to happen?
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Less 15% spread and 5% fee.
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Its what i like to call the Dell Dump. What is the Dell Dump? The Dell Dump is is the name I gave the situation where all companies involved in accepting bitcoin dump their coins for fiat. Most of the companies that accept Bitcoins immediately convert them to fiat. Usually through Coinbase, because Coinbase is now integrated with several popular shopping cart programs. Coinbase then dumps them on some exchange. That's just fine. Bitcoin is doing what it was originally supposed to do - support retail transactions. It's a medium of exchange. No problem there. As an investment, Bitcoin generates no revenue, so it's inherently a poor investment. All gains from holding Bitcoin come at the expense of some loser somewhere. It's a zero-sum game.
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The miners are not "burning" electricity. They are using the electricity to perform mathematical calculations that prevent people from spending the same money twice. This is not unlike how banks power their computer systems to keep track of account holders' balances Each full Bitcoin node keeps track of enough data to detect spending the same money twice. At the current transaction volume, that's a background job on a PC. That's all the compute power needed for accounting. All those racks of ASIC machines are doing no accounting whatsoever. Attached to an ASIC farm is some modest PC doing the block chain work.
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They need an audit. They're not entitled to the "small company exemption" with assets of US$64 million. Here's the "Companies Act" section to which they refer. They may be able to claim that they were a small company in 2012, and get a year after becoming a large company in 2013 to comply. For 2014, they need a full audit. Also, an annual statement normally contains both a statement of operations and a balance sheet. They just have a balance sheet, and one with too little information. All their liabilities, including customer deposits, are consolidated into one number. This is worthless.
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No. The amount of money being spent on mining will be roughly equal to the selling price of new Bitcoins produced. The Bitcoin price drives the level of mining activity, not the other way round. Difficulty has little impact on Bitcoin price. In the last six months, Bitcoin difficulty has gone to the moon as huge mining farms have been built. Bitcoin price has gone nowhere.
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Use an ATM. They are quick and easy, and generally aren't going to rip you off.
The Robocoin at Hacker Dojo in Mountain View has a 15% bid/ask spread and a $5 fee.
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exelent calculations, so this means you have found a very good way to earn out of mining, which miners do you use ?
GPUs Not even worth turning them on. Calculate your mean time to mine one block. Decades or worse, probably.
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Baguette cut Gems 5# ruby synthetic ruby on saleUS $0.00542 - 0.0058 / Piece Supply Ability: 5,000,000 Piece/Pieces per Month Jiang Yuan Gems, Wuzhou city,Guangxi.
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Right. Live by spam, die by spam.
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This isn't a tube site or affiliate program you're building. White label anything should never be used when you're dealing with other peoples' money.
Theoretically since they are managing multi9ple exchanges, they should have more resources to spend on security/pen testing. Doesn't protect against an inside job. Most Bitcoin losses have involved the people running the business.
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difficulty up --> time --> price up No. Look at the price and difficulty graphs for the last six months. Difficulty is going to the moon, price is going nowhere. Difficulty should start to level off when price/performance of Bitcoin ASICs levels off. Probably in 2015.
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Today banks can't do it, no legal frames in the USA, what I know, but it will be changed soon, I hope. Any stockbroker could do it. None of them have chosen to do so.
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Right. They own their own insurance company, which insures them. It's based in Bermuda. Not good. Some very big companies like AT&T and Boeing have their own captive insurers, but that's usually for tax reasons. They handle things like auto insurance for company cars, and maybe fire insurance. Captive insurers usually re-insure; they have a policy with another insurer with some multi-million dollar deductible in case something really bad happens. The little stuff they handle in-house. Xapo, not so much.
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