MtGox now has a real competitor, so it is now far less decentralized: http://www.tradehill.com/

More features, lower fees (and a 10% discount on all fees if you use this code: TH-R1168)

MtGox high fees have finally attracted a strong competitor: www.tradehill.com

They claim that their fees can be as low as 0.25% in their FAQ

Plus you get 10% off all fees if you use this code: TH-R1168

Since this thread has a lot of complaints about MtGox, it seems like a good spot to post about their new competitor: http://www.tradehill.com/

You can get a 10% discount on all fees if you sign up using this code: TH-R1168

This isn't the first bitcoin service with a referral program, and the others haven't been a problem (you mostly see the referral codes in people's signatures).

Of course, to contradict myself, this thread needs a referral code, for anyone who learns about http://www.tradehill.com here. I believe it should give you a 10% discount on all your fees: TH-R1168

Interesting that tradehill lauched on the same day that MtGox is having these problems (https://www.tradehill.com/)

I'm not suggesting that they have anything to do with it, but it's good fortune for them.

If you guys sign up for tradehill, make sure to use this code to get a discount on trading fees: TH-R1168

No real competitors to MtGox, eh?

Here ya go: https://www.tradehill.com/

Use this code to get a discount on trading fees: TH-R1168

The DEA is coming!! The DEA is coming!!

They have warrents! They'll close your bank account! You'll go to jail!

SELL SELLL SELLWLLWSLWSLW!!!!!!

Wow. Look at those falling bitcoin prices though.

Already down almost $10!

I guess the fantastic gains were a bit fragile.

Post in this thread if you are a bitcoiner in the Seattle area!

I'm in Woodinville, and I know of one other guy mining away down in Lacey (near Tacoma) but he doesn't frequent this forum much. Anybody else?

Just in case anybody else is interested in a Seattle meetup, I put a placeholder here: https://en.bitcoin.it/wiki/Meetups

I plan to talk to an tax accountant around November or December (when they aren't swamped), and I will do whatever they say to do.

Also, please stop cluttering this thread with flames.

Sorry to disappoint you, but HFT will definitely be possible on the black market exchanges. They will just use bitcoin to get the money in and out.

Holy cow, and we're already almost there! $34 may not be high enough!

Earlier in this thread, I jokingly said that if you want to speculate on prices higher than $99 by July 1st, just buy bitcoins. Now I have to decide if I can provide a mechanism to do so. Any ideas? Should I just expand the range to include values up to 1.99 BTC? 2.99 BTC? (Obviously that would only apply to bets posted after the change is announced).

My personal opinion is that when wall street truly gets it, the bitcoin speculative bubble will make the internet bubble look tiny in comparison.

Geeks: Here's the internet. It changes everything.
Wallstreet: Nifty! Here's billions of dollars!!
Geeks: Wow, thanks! Changing everything can be really profitable. What can we do next? . . .

Somebody placed a bet on $34 bitcoins on July 1st. Wow.

Thanks for the correction. I didn't trade, because I knew I probably wasn't understanding things well enough. Also, I'm way too chicken to trade bitcoin options. Just owning my few bitcoins is all the excitement I need - the people trading options are going to be a combination of starry-eyed idiots and really smart people with cast-iron stomachs. I'm just smart enough to know I'm not smart enough

BTW, it's a lot more fun to play the lottery than to run the lottery, but it is a lot more profitable to run the lottery, especially when it comes to options.

Smart money is going to be collecting huge money here soon in the form of a "volatility risk premium" on out-of-the-money options (http://www.cxoadvisory.com/volatility-effects/the-why-of-the-volatility-risk-premium/)

Please don't ask me to explain any of this stuff. I'm barely smart enough to link to it.

Go for it! I'm just glad you think they are correct.

I didn't mean to imply that I own this service! The guy who started this thread owns the website. I'm just trying to help people understand how the options work.

Here is my attempt at some examples (IMPORTANT EDIT: My math below is wrong. See post #1 in this thread for correct math. I'm leaving my wrong math below for posterity):

1) The bitcoin ultra-bull: buys 500 puts at a strike price of .02 BTC/USD (The right to buy 10 bitcoins for $500) for 0.1 BTC. When bitcoins skyrocket to $1000 each, he exercises the put, in which case he gets to buy 10 bitcoins at $50 each when they are currently worth $1000 each.
2) The bitcoin ultra-bear: buys 5000 calls at a strike price of 0.5 BTC/USD (The right to sell 2500 bitcoins for $5000) for 1 BTC. . When bitcoins crash to 0.01 each, he exercises the call, in which case he gets to sell 2500 bitcoins at $2 each when they are currently worth 0.01 each.
3) The ultra-bull counter-party need not be a bear, but rather just someone who doesn't think that bitcoins are going above $50 before the option expires. They put their 10 bitcoins in escrow (currently worth < $200), and they either get 10.1 bitcoins back, or $500 USD + 0.1 BTC back. Not a bad deal.
4) The ultra-bear counter-party is just someone who doesn't think bitcoins are going to fall under $2 before the option expires. They put their $5000 in escrow (currently worth < 300 bitcoins), and they either get $5000 USD + 1 BTC back, or 2501 bitcoins

The counter-parties can make a nice steady income just betting against massive changes in bitcoin values. The ones buying puts and calls are essentially playing the lottery - betting on massive changes.

There are a LOT of other things that you can do with options (spreads and such), but this should get people started. Please help me fix any errors above - I am not an expert on options, and I may have gotten something completely wrong.