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6741  Bitcoin / Bitcoin Technical Support / Re: Why did this transaction need a fee? on: March 26, 2013, 01:34:58 AM
The tx are low priority.  To avoid the min mandatory fee (anti-spam fee) not to be confused with optional fees paid to increase  chance of faster processing.  A transaction must meet ALL THREE criteria

a) be high priority (priority over 57,600,000 ~= 1 bitcoin day)*
b) all outputs >= 0.01 BTC
c) total size < 10 KB

The first tx has a single input of ~4 BTC which was at the time of the tx 4 blocks "old".  Priority is (4.0E8 * 4) / 250 = 6,400,000 which is less than the threshold for high priority (57,600,000).



* Priority of each transaction is the coin age (in blocks) multiplied by the input value (in satoshi) and each input in a 2+ input tx is calculated independently.  57,600,000 works out to roughly "1 Bitcoin Day" for the average sized transaction (250 bytes).  If you receive 1 BTC and wait 1 day (144 blocks) before spending it will be high priority.  If you receive 20 BTC and wait 1/20th of a day (~7 blocks) before spending it will be high priority.  If you receive 0.1 BTC and wait 100 days before spending it will be high priority.

The exact forumla is:
priority = sum(input_value_in_base_units * input_age)/size_in_bytes

https://en.bitcoin.it/wiki/Transaction_fee
6742  Other / Beginners & Help / Re: What happens when the government bans businesses from accepting Bitcoins? on: March 25, 2013, 08:11:11 PM
I could be wrong but in the case of a stolen credit card being used, the seller of the product is not the one who incurs the charge, its the credit card companies who cover the cost.

That isn't true.  In case of fraudulent use the merchant not only loses 100% they also get to pay a charge back fee of up to $35.00 for the privilege of having accepted a card that was stolen (or owner simply claimed was stolen).  Worse CC companies make it simply impossible for merchants to avoid/prevent fraud (both third party friend and so called "friendly fraud").  Seller can do absolutely nothing to prevent (reduce the chance but never prevent all cases) fraud and then loses everything PLUS a penalty when it happens.

6743  Other / Beginners & Help / Re: What happens when the government bans businesses from accepting Bitcoins? on: March 25, 2013, 08:08:10 PM
Who is this entity known as "the government" and how do they have control over all ~180 countries on the planet?
6744  Other / Beginners & Help / Re: Could decimal places become cumbersome? on: March 25, 2013, 07:27:59 PM
Asked and answered.  See mBTC.
6745  Bitcoin / Bitcoin Discussion / Re: High volume "on-chain" Bitcoin transactions above the block limit on: March 25, 2013, 05:37:30 PM
No not really.  The combined tx may be slightly more efficient in terms of space if the private keys were of exact size however if you need to include a change address for each tx the combined tx is going to be just as large as the sum of the individual transactions.   It might be slightly smaller but not significant enough to warrant the increased complexity.  Also the private keys are vulnerable to double spend until the combined tx is created and confirmed in a block.
6746  Other / Beginners & Help / Re: If a guy sells his house for bitcoins how is he going to be taxed? on: March 25, 2013, 03:50:56 PM
But bitcoin's value in dollars changes the order of magnitude throughout the year, how will Canada Revenue determine how much does he owe? Will they check how much did BTC cost at the moment of sale?

Yes.  It is no different than anything else.  The exchange rate between EUR:CAD varies throughout the year.  How could Canadian Revenue Office determine how much a sale in EUR is worth?  Oh yeah look at the exchange rate at the time of the sale.

More likely the seller will report in the contract the exchange rate at the time of the sale.  The tax office will simply verify that it is a plausible number.
6747  Other / Beginners & Help / Re: If a guy sells his house for bitcoins how is he going to be taxed? on: March 25, 2013, 03:48:55 PM
But is "magically" not enforceable, rendering taxes voluntary, sic.

Hardly.  In a real property transaction the change in ownership needs to be recorded with the state.  Taxes will be paid by all parties.  Bitcoin isn't some magical tax free currency.  Anything of sizeable value causes ripples in the real world.  Say NewEgg accepted Bitcoins and this year did $50M in sales.   Where did the $50M in inventory come from?  think it is going to leave a paper trail.  NewEgg would wisely pay corporate income tax on all that revenue.  If they didn't come audit time it is going to be trivially easy to bust them.

Sure you might be able to sell a thousand dollars in gold coins and avoid taxes if you use Bitcoin but  .... you could do the same thing with cash.  Anything involving real world inventory or property is going to leave paper trail and tax agencies aren't just going to "miss" billions of dollars in commerce just because it didn't involve legal tender.
6748  Economy / Currency exchange / Re: Public declaration of transaction on: March 24, 2013, 11:46:11 PM
Admins please make sure OP gets his trade

It isn't the admin (or mods) job to ensure the OP gets his trade.  It is the OP job and for the record it is highly likely the OP will get nothing.  False ebay listing by a brand new seller for a huge sum of money ... not to hard to see where this is going.

6749  Economy / Speculation / Re: [LOL] Noobs define a crash as Up $60 then down $10...so fail on: March 23, 2013, 06:08:16 PM
This is just the beginning of the crash.

(scrambles to place buy order)
6750  Other / Beginners & Help / Re: What other crypto currency should MtGox support ? on: March 23, 2013, 06:05:58 PM
Yes, alto coins are a way of inflation like central banks printing money. Less is better. But I don't think the BitCoin will last forever. Better design is needed for the long run.

Much like dirt coins devalue gold coins.
6751  Alternate cryptocurrencies / Altcoin Discussion / Re: [Feedback Wanted] The Most Unique and Precious Alt Coin, based on Time. on: March 23, 2013, 03:41:49 AM
reversible transactions, no 51% = centralized control.

not a crypto-currency.
6752  Other / Beginners & Help / Re: Explain me - real bitcoin worth? on: March 22, 2013, 09:27:18 PM
MtGox doesn't have 90% of the market.  MtGox doesn't have even 90% of the exchange volume more like 60% to 70%.  If you add in all OTC, and direct brokers it is probably less than half.

Still you already convinced your self Mtgox = ~100% of market and MtGox = Bitcoin so my guess is you have you mind made up.

BTW your depth numbers are just imaginary.
6753  Other / Beginners & Help / Re: bitcoin address not valid on: March 22, 2013, 08:38:59 PM
I will leave this here ...

http://en.wikipedia.org/wiki/Unit_testing

(with Bitcoin test driven application development is your friend)
6754  Bitcoin / Bitcoin Discussion / Re: FinCEN addresses Bitcoin on: March 22, 2013, 08:21:33 PM
FinCen keeping lawyers employed since 1972.

The annoying thing isn't the compliance it is the impossibility of compliance.  FinCEN doens't even know what the answer is.  Anyone who has actually read the regs on money transmitter can probably spot a whole host of areas where they simply don't apply to a "virtual currency exchanger". FinCEN can't by fiat give itself oversight authority over a new class of MSB (which is what virtual currency exchanger should be) so it is trying to force a round peg into a square hole.

Fun game to play.  Call FinCEN hotline with a list of six questions about the (in)applicability of money transmitter regs on virtual currency exchanger.  Record the answer.  Call again and get six new answers. 

If FinCEN doesn't know what companies should do how can companies know.  How can a lawyer provide counsel when the regulator doesn't even know how they intend to regulate.
6755  Other / Beginners & Help / Re: Need advice on working between exchanges on: March 22, 2013, 08:07:03 PM
It all comes down to risk vs reward vs effort.

With $10 the fees are going to kill you.  Most exchanges have fees on cashing out and bank wire is pretty cheap on large sums ($5K+) but prohibitive on small sums.  Then you have to consider the lag on moving fiat.

Most fiat transfer methods are slow.  So you have $10 net worth.  You buy BTC on one exchange, sell them on another and make say 5%.  Sweet you have $10.50.  However cashing out of MtGox, moving the fiat to your bank account and then from your bank account to BTC-e through a bunch of middle men may take a week.

Awesome you just landed a job which pays $0.50 per week!  Now with $10,000 you might make $500 per week however most arbitrage opportunities aren't that deep so you may make less.  Even if they are if an exchange closes up well there goes 20 weeks worth of income. Sometimes MtGox withdraws get lagged weeks (or even months) so if you only have $10,000 capital and it is all lagged well your income goes to $0.00.  Still with enough cash (willing to risk it all disapears one day when the operators pull a Bitcoinica) you can make the spread bug it is going to take a LOT of capital to keep the exchanges and pipelines "loaded".
6756  Bitcoin / Project Development / Re: So Wikimedia accepts stock donations but can't do the same with bitcoins on: March 22, 2013, 05:18:27 PM
I write them and EFF every six months.  I have supported both projects for a long time with annual donations and I will again (including "back donations") but not until they support Bitcoin.
6757  Economy / Currency exchange / Re: FastCash4Bitcoins - over 275,000 BTC purchased - just 2.99% below spot every day on: March 22, 2013, 01:21:41 PM
You guys ever think of having wallets on your users accounts? So a user can send their fund to your system wallet there from all the different places they need to send then when they are ready to cash out do it right from there. Also in cases where there are small amounts. Sometimes I have multiple small amounts that do not reach the min requirement to cash out I'll usually send to my armory wallet, but if I knew I was going to cash that out I would have sent those fund to my FC4B wallet to prepare for the cash out. Still would need to send to the network at the end, but I was just thinking it may be a convenience, that's all.

We have no plans to become a eWallet in the near future.  I don't like the idea of needing to secure a large hot wallet of client coins.  Many clients have told us one reason they use us is specifically the 100% cold wallet policy.  We will focus on where we provide the most value and that is being the best direct broker of bitcoins.

The next major version of the site will separate the actions of exchanging and cashing out.  In your example above you could make multiple deposits.   Each deposit will be exchanged at the market rate at the time of the deposit.  When ready you can make a cash out request in the amount you wish.   By breaking the exchange and cash out functions into separate actions it will give clients a lot more flexibility.     

It is a pretty major overhaul of the site so we are still looking at late April launch but I am really excited about the options it will bring to our clients.
6758  Bitcoin / Development & Technical Discussion / Re: Question regarding minimum fees for small transactions on: March 22, 2013, 12:32:49 AM
So 5,000,0000 tx at a cost of 1 BTC.  Average tx size is 400 bytes so thats ~2GB added to the blockchain for 1 BTC.  At a cost of 1,000 BTC a malicous user could permanently bloat the blockchain by 1TB.  Imagine having to bootstrap as a new node with a 1TB blockchain full of spam which needs to be carried by every node forever for a token cost of only 1,000 BTC.
6759  Economy / Speculation / Re: will you speculate at $100? on: March 21, 2013, 07:15:53 PM
will you speculate at $100?

No all my orders are at $99 or $101.
6760  Other / Beginners & Help / Re: bitcoin address not valid on: March 21, 2013, 07:10:26 PM
Could it be that my wallet is still syncing with the network?

No and all the comments about resyncing, copying wallet files and other nonsense are off the mark.  An address is valid or it isn't. It has nothing to do with the blockchain.  You could compute and address by hand using pen and paper and it is valid or it isn't.
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