Wow I thought it was sooner than that?

Nakamura? They must mean satoshi

I'm not sure at the moment it one should be long or short. If you want to take a position you are usually best to wait for an extreme. E.g. you short at the highest tip of a raging rally or you long just after a big crash. You can then either cash out or make that a long term position if you think that is the way the market is going to go.

At the moment I do not know if we are going to $5 or $1.

When I first started on bitcoinica I was really stupid but lucky!... I put about $900 in and bought as many bitcoins as I could. When I realised I was losing money I started selling like mad. What happened next was that I kept selling without realising and I was actually in a negative BTC position which meant I was shorting! After that BTC had a very sharp decline. I think it dropped almost $2 that night. I remember waking up and checking my computer and seeing I'd made $600!

Beginners luck!

If a few more hosting providers also supported it for example nearly freespeech that would help a lot. The real deal clincher would be if google DNS can be persuaded to use it. 

cipher

Love the "S3 Virge 60.21 BTC" Lol

Problem with faster blocks though is that you end up with a very high inflation rate. Remember what it was like when TBX/FBX/LTC first came out and you were getting blocks every half minute? Well when BTC first came out it took an hour or so on a standard PC to find a block. The problem is the amount of coins minted is so fast that you can't find investors to buy them all. SC2 dealt with this by cutting the miner subsidy which was a gamble but it appears to have paid off. The other coins that still have the same subsidy have been going down in value. Unless they can find a niche that causes people to buy them up they will just become worth less and less over time. The other problem is of course botnets. Botnet owners don't pay for electricity and just dump the coins.

So are people more comfortable with the idea of alt-chains now?

I remember when namecoin first came out some people (probably just those that held a lot of bitcoin) were protesting about that. IXcoin created an obvious shitstorm then Solidcoin even more so.
By the time LTC had come out people were mostly pretty chilled. Now we have a lot of different coins. I guess they all need to find their niche markets.

When bitcoinica first came out you could short bitcoins at about $7... if you did so then forgot about it and went away and did other things and then came back you would have found a very nice Unrealized P/L in your account.

Well if you end up with 1 billion DVC and their worth 0.1 cents each then theoretically you have a million bucks.

Nice to see the mother of all short positions

http://charts.bitcoinica.com/daily_quotes?date=2011-09-06

Fractional reserve banking also destroys money in a similar method to how it creates it. That is just as creating $1000 in a new loan will end up creating more $1000 loans then destroying $1000 end up with more lots of $1000 being destroyed  If we go through a period of rapid deflation it would be interesting to see how alternate currencies play out. Coins with inflation may in some ways be desirable. Alternately we may need coins with even faster deflation than fiat is being deflated at. The race may be on to make a coin with very fast deflation that is still attractive to both miners and investors.

Devcoin came out after namecoin but before ixcoin.

You can also look for outside news. For example there was a segment about bitcoin on Fox that came out on a Sunday and a few days later the mysterious MtGox countdown was due to finish. That WAS a very good time to long.

I like your idea about having multiple accounts. You keep a certain amount of reserve USD or BTC on Mtgox and if one of your accounts looks like its about to be liquidated you deposit some capital to take it back. The rational being that if the market moves against you it will eventually come back and you can exit without loss. Of course if the market REALLY moves like over a $1 change then you might lose your backup capital as well. You can also try to short the spike then there's another spike and your forever throwing in more capital to try to stop the forced liquidation. If you can get your money in fast enough is might be 3-4 days until you can exit your position without a loss.

Then your feeling sorry for yourself thinking about how rich you would be if you went long.

This all comes back to knowing what the trend is. At the moment we're still not quite sure if BTC is going back to above 5 or its crashing back to parity.

If you're going against the trend take out small profits. If your going with it wait for the large ones. Of course I got nuts just trying to work out what the trend actually is.

Same goes for if your making a small loss and your not sure if you should exit your position or not. The simple rule of thumb is are you bettering for or against the trend?

I actually went back to CFD trading bank stocks and have been making a little money and keeping much better hours and not a forced liquidated yet!

 The thing I noticed about my CFD provider is that the amount of margin you are given is determined on where your stop loss is. Why not make something similar on bitcoinica? For example if you have no stop loss you can only trade 1:1 the closer your stop loss is the more margin you can use. That way there really shouldn't be any forced liquidations.

Well I am confident we will see a return to the price of about $1 per NMC sometime next year. Looking at the chart you can see when it peaked in price about the same time as the mass bitcoin price rise.

http://tvori.info/bitcoin/charts/

What would help the most if mtgox and or tradehill opened usd/nmc trading. That would help increase the volume.

Are you going to sneak terrance and phillip in too?

Options recently came out on vircurex.

22 Dec 2011

2011-12-22