That overstock interview smells fishy.
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Arbitrage is the right word but it's simply not causing these big spikes.
1. Chinese man with FIAT in BTCCHINA. He wants to make a profit so he buys all the BTC and then sells on MtGox with an extra $100usd on top. Now what does he do with USD in MTGOX? It takes months to withdraw, and then he has to withdraw into his Chinese bank. There is definitely no repeating cycle here because it's simply too long and as we have been told, FIAT is not travelling back into the BTC Exchanges.
2. Foreigner with FIAT in BTC China. Any foreigner with fiat in BTC China wants to get out, they should be buying BTC and moving it elsewhere. He sells on MtGox or Bitstamp and then what? He can't send it back to China to repeat the cycle.
Basically, it's not a cycle of arbitrage, the price difference on the exchange is not an opportunity that many people can take advantage of, not enough to create massive price spikes across all exchanges.
Anybody in China with yuan on the exchange will just withdraw them and be done with it.
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In which case you have to examine the solvency of your govt., and the state of it's fiat paper, to make good on the deposit 'insurance'. And being repaid in a highly devaluing currency (because millions of people have just had their 85,000 deposit 'insurance' freshly printed) may not be much of a settlement at all.
moa is exactly right. The insurance won't be worth much if it is paid with freshly printed paper. If there are whispers about the banks or the government becoming insolvent, make plans while you can before it happens. To be absolutely clear, owners of small deposits are protected in most countries by some government-backed insurance scheme, however, all these schemes are accounting gimmicks. There is no money saved for this purpose. Ideally the banks should be levied over many years to fund these schemes, and the fund ring-fenced. Instead they are all backed with printed money. So, during a bail-in, small depositors are made whole by an inflationary stealth tax on every person holding the currency concerned. Bitcoin user not affectedTMWhich does not lead to actual inflation because it stimulates spending more than everything. "Inflationary" is just not printing money, it's only inflation if the pace of new money overtakes the economy.
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I woke up today to see Bitcoin back up, pushing 700 again .... and first thing I thought of was ... "I wonder how stupid revans feels right now?"
Our "collapse of hubris" isn't panning out like you (prematurely) ejaculated. I mean predicted.
Your gloating pretty much proves his point. Your statement would make 1 ounce of sense if I we were at 1200 and I was mindlessly bragging about how much money I'd made. That was his point. However his claim was that we've already been dashed to the rocks and look like fools. Therefore, defending the total lack of "being dashed to the rocks" as well as "looking like fools" hardly proves the point *he* was making. In short: Correcting mis-perception does not equate to hubris. The hubris was revans first post. The responses refuting it, don't qualify as hubris. Lol you are so smug.
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I woke up today to see Bitcoin back up, pushing 700 again .... and first thing I thought of was ... "I wonder how stupid revans feels right now?"
Our "collapse of hubris" isn't panning out like you (prematurely) ejaculated. I mean predicted.
Your gloating pretty much proves his point.
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Yeah I am not too bright.
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Because there is no way to deposit there. It's the same situation as on mtgox, just reversed.
Damn, Bitcoin is so stupid.
I can't move fiat money because some authority or middleman says no. It's Bitcoin's fault! WTF Mucus? Ok just for you substitute Bitcoin with "The people and current state of affairs surrounding Bitcoin along with their actions." For me and everybody else this is just too lengthy.
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Because there is no way to deposit there. It's the same situation as on mtgox, just reversed.
Damn, Bitcoin is so stupid.
What exactly is stupid about Bitcoin in this situation? Bitcoiners
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Yes but they can't sell them on mtgox to cash out.
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Because there is no way to deposit there. It's the same situation as on mtgox, just reversed.
Damn, Bitcoin is so stupid.
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You forget those are the people calling for the collapse of modern civilization while they think to be Lord Humongous in the resulting dystopia.
A good deal of Schadenfreude is well deserved. Do you really think that everyone who got excited about Bitcoin late and made a big bet on it was some kind of face-stomping villain? That's an awfully cold assessment, in a world where nearly every cause - even noble ones - could stand to benefit from some extra cash in the bank. Here is the thing: Noble causes aren't pursued by people after this kind of gain. No, besides a very few exceptions nobody in this community even thinks about the betterment of mankind, even more with the recent wave.
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Depressing: Lost ~$50k this crash (in btc) thus far. Somewhat Uplifting: Before Bitcoin, didn't have 50k to lose. I'm over it. Bitcoin will recover (as it has 5x times already). It's one resilient SOB. The collapse of hubris has begun indeed.
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Soon, all the vested interests who were screaming at people to buy in at $1000, telling people to sell their houses, cars, shirt off their back to buy buy buy will be shouting 'SUCKERS!'.
I hope there are plenty of people who lose absolutely everything to this scam. And I hope their utter financial ruin will serve as a warning. regardless of people's decision. Whether it is greed or not. I wouldn't be happy for someone in financial ruin (if that happens). You probably hate yourself, so your happy when other people are in despair.. The type of person who if you didn't like the neighbor and his house burnt down. You would be happy. You forget those are the people calling for the collapse of modern civilization while they think to be Lord Humongous in the resulting dystopia. A good deal of Schadenfreude is well deserved.
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Europe is "about to tip over" ever since 2008 but so is the rest of the world. But this has more do to with unskilled labor becoming obsolete than the financial system.
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High prices because of lack of liquidity is never good. And it would be non-nonsensical to buy any more at a certain point. High value wallets are either: People who got in early enough... they simply can't afford to buy more. Or people who are already wealthy... they are already loaded so much that there isn't enough liquidity.
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I have a hunch that the current exponential trend-line will be broken next year.
Please excuse my ignorance if it is clear, but in which way and why? Just a hunch. Has something to do with the failure to reach gold parity.
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I have a hunch that the current exponential trend-line will be broken next year.
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